Boosting Uganda’s Economy: The Power of Export Promotion

By Bagarukayo Abdu

Uganda’s economic growth and development can be significantly enhanced by promoting exports and reducing imports. By embracing export promotion, Uganda can unlock numerous benefits, including increased foreign exchange earnings, job creation, and economic diversification.

Export promotion offers several advantages. Increased foreign exchange earnings can be achieved by exporting goods and services, which can be used to import essential goods and services not produced locally.

Export-oriented industries can create employment opportunities for Ugandans, contributing to poverty reduction and economic growth. Export promotion can also help Uganda diversify its economy by developing new industries and sectors, reducing dependence on traditional exports.

President Yoweri Museveni emphasized the importance of adding value to Uganda’s raw materials and promoting export-oriented industries. In his 2023/2024 Budget Speech, he noted that Uganda’s economy had grown 37 times in size compared to 1986, reaching $55.2 billion. He urged Ugandans to leverage the country’s literate population, abundant electricity, good roads, and railway system to add value to local products and reduce dependence on imports.

Import substitution can also play a vital role in Uganda’s economic development. By producing goods and services locally, Uganda can save foreign exchange, promote local industries, and improve self-sufficiency. This approach can help reduce dependence on external factors, improving the country’s resilience. President Museveni encouraged Ugandans to focus on import substitution and export promotion, citing the potential to save $3.6 billion in import substitution and earn $1.6 billion in industrial products.

The African Continental Free Trade Area (AfCFTA) presents a significant opportunity for Uganda to expand its market reach and increase exports. By participating in the AfCFTA, Ugandan businesses can access a vast market of over 1.3 billion people, improving their competitiveness and productivity. This can lead to increased economic growth and development, creating employment opportunities and stimulating economic activity.

To reap the benefits of export promotion and import substitution, Ugandans should develop competitive industries with potential for growth and development. This can be achieved by providing support to make them competitive in the global market.

Investing in infrastructure, such as transportation and logistics, can facilitate the movement of goods and services. Offering incentives, such as tax breaks or subsidies, can encourage businesses to engage in export-oriented activities. Encouraging Ugandans to buy local products can promote import substitution and support local industries.

By embracing export promotion, import substitution, and the AfCFTA, Uganda can unlock its economic potential, creating employment opportunities, improving competitiveness, and stimulating economic growth. This can help build a stronger, more resilient economy that benefits all Ugandans.

The writer is an NRM cadre