What you need to know:
Aim. Move meant to boost bilateral relations between the two countries.
Nairobi. South Africa has embarked on enhancing its investments in Uganda, Daily Monitor has learnt.
In support of the initiative, South Africa’s department of Trade and Industry will lead a delegation of businesspeople on an outward selling mission (OSM) scheduled to take place in Kampala from November 16 to 20.
The OSM aims to increase trade and investment, and deepen bilateral relations between the two countries.
In a communication to Daily Monitor yesterday, South Africa’s minister of Trade and Industry, Dr Rob Davies, said: “The mission is part of South Africa’s initiatives to promote continuous and sustainable bilateral trade relations with African countries in order to advance SA’s industrial development and export diversification.”
The mission will also serve as an ideal opportunity for South African companies to export value-added products and services to Uganda and identify investment opportunities in the country.
According to Dr Davies, the OSM to Uganda also aims at building on the commitments made by the Heads of State of both countries to increase trade and investment in their respective countries.
“Uganda has also expressed its commitment to the Tripartite Free Trade Area, as it ensures that a larger market is likely to bring about economic and welfare gains through ripple effects of industrialisation and improved efficiency in production that may result in increased trade flows across the region,” Davies said.
Sectors targeted for the OSM are agro-processing, built environment professionals (consulting engineers, civil engineering contractors, quantity surveying and architects), capital equipment, electro-technical, infrastructure (water), metals, chemicals, pharmaceuticals and medical equipment. The programme for the OSM will include a business seminar, roundtable discussions and business-to-business meetings.
Statistics from the South African trade department shows that total trade between the two countries has grown from R1.3 billion (Shs338b) in 2009 to R1.9 billion (Shs494b) in 2014.
In 2014, South Africa exports to Uganda increased to R1.8 billion (Shs468 billion) down from R1.2 billion (Shs312 billion) recorded in 2009.
South Africa’s exports to Uganda include machinery, vehicles, plastics, chemicals, electronics, spare parts and accessories, books and newsprint, textiles, footwear, fruits, aircraft and household goods.
Some of the South African companies doing business in Uganda include Eskom, Sanlam, MTN Uganda, SAB Millers and Stanbic Bank.