Government unveils export strategy
A man in a snacks factory. Experts say value addition raises living standards. File Photo
Kampala- Low value addition, uncompetitive products and inadequate financing have all conspired against growth of exports with industry analysts suggesting the recent foreign exchange instability being one of the consequences of the decline.
Presenting the National Export Development Strategy for the financial year 2015/16-2019/20 early this week, Mr Emmanuel Mutahunga, the principal commercial officer at the Ministry of Trade said production of traditional crops has stagnated with some falling; something which he said raises serious concerns if it is not addressed.
In his presentation, total exports for last year dropped to $2.6b from $2.8b the year before—2013, resulting into continued widening of Uganda’s trade imbalance, which has had serious impact on the country’s economic fundamentals, including weakening the Shilling and inflationary pressures.
However, Mr Mutahunga said they as government were seeking for solutions which would ideally focus on improving agricultural productivity and value addition.
Government, according to Mutahunga will seriously focus on promoting preferential markets, with the view of increasing production and converting more land for agricultural usage.
The strategy also encourages tax incentives to companies adding value to products, reducing administrative barriers to export of raw materials, government investment in value addition, quality assurance and assisting SMEs in the process of product certification.
