Koborer
JF-Expert Member
- Apr 6, 2012
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In Summary
Uganda is preparing to negotiate with the Democratic Republic of Congo (DRC) over the possibility of the two neighbouring countries furthering their trade ties.
According to the country's Trade minister Amelia Kyambadde, the talks are intended to pave way for more penetration of Uganda's exports into the large DRC market, thereby reducing reliance on the troubled South Sudan.
Speaking during the opening of the Trade Facilitation Expo in Kampala last week, Ms Kyambadde said the talks will be held in the next two months so that traders and manufacturers, especially those affected by the South Sudan civil war, can take refuge in the large DRC market as the situation in South Sudan stabilises.
Talks due in September
The minister said: "We will hold talks with the government of DR Congo in September to broker a deal with the authority to make the DRC market our trade destination." She continued: "We are looking at DRC replacing the South Sudan market and becoming our major destination as well."
Ms Kyambadde's remarks followed the Private Sector Foundation Uganda (PSFU) Board chairman, Mr Patrick Bitature's concern about how South Sudan political troubles are affecting trade between the two neighbouring countries.
Presenting a quarterly report earlier in the year, Ms Kyambadde said: "I encourage people to start trade with DR Congo. It [DRC] being the current Comesa chair, we are asking them to create a conducive environment for trade with them."
Private sector members who attended the expo told the minister that the cost of power in Uganda was too high and that widespread counterfeit products in the market were rendering their genuine products worthless and uncompetitive.
Export revenue decline
South Sudan is Uganda's biggest trading partner with an annual export revenue of over $358 million as per the 2013 data from the ministry of Trade. From her trade with South Sudan, Uganda earns a monthly income of about $28.4 million per month and over $900,000 per day.
According to the Ministry of Trade, manufacturers have so far registered a 61 per cent decline with exports falling from around $874,524 to $340,304 per month. The data also shows that the volume of Ugandan exports to South Sudan declined by about 60 per cent since the war broke out towards the end of last year.
The DRC market is the third largest export destination for Ugandan products after Sudan (South and North) and Kenya, according to Uganda Export Promotion Board figures. Last year, Ugandan exports worth $268 million made its way to the DRC market.
Source: Uganda seeks DRC as alternative market to South Sudan - Business - www.theeastafrican.co.ke
- Last year, Ugandan exports worth $268 million made its way to the DRC market.
- South Sudan is Uganda's biggest trading partner with an annual export revenue of over $358 million.
Uganda is preparing to negotiate with the Democratic Republic of Congo (DRC) over the possibility of the two neighbouring countries furthering their trade ties.
According to the country's Trade minister Amelia Kyambadde, the talks are intended to pave way for more penetration of Uganda's exports into the large DRC market, thereby reducing reliance on the troubled South Sudan.
Speaking during the opening of the Trade Facilitation Expo in Kampala last week, Ms Kyambadde said the talks will be held in the next two months so that traders and manufacturers, especially those affected by the South Sudan civil war, can take refuge in the large DRC market as the situation in South Sudan stabilises.
Talks due in September
The minister said: "We will hold talks with the government of DR Congo in September to broker a deal with the authority to make the DRC market our trade destination." She continued: "We are looking at DRC replacing the South Sudan market and becoming our major destination as well."
Ms Kyambadde's remarks followed the Private Sector Foundation Uganda (PSFU) Board chairman, Mr Patrick Bitature's concern about how South Sudan political troubles are affecting trade between the two neighbouring countries.
Presenting a quarterly report earlier in the year, Ms Kyambadde said: "I encourage people to start trade with DR Congo. It [DRC] being the current Comesa chair, we are asking them to create a conducive environment for trade with them."
Private sector members who attended the expo told the minister that the cost of power in Uganda was too high and that widespread counterfeit products in the market were rendering their genuine products worthless and uncompetitive.
Export revenue decline
South Sudan is Uganda's biggest trading partner with an annual export revenue of over $358 million as per the 2013 data from the ministry of Trade. From her trade with South Sudan, Uganda earns a monthly income of about $28.4 million per month and over $900,000 per day.
According to the Ministry of Trade, manufacturers have so far registered a 61 per cent decline with exports falling from around $874,524 to $340,304 per month. The data also shows that the volume of Ugandan exports to South Sudan declined by about 60 per cent since the war broke out towards the end of last year.
The DRC market is the third largest export destination for Ugandan products after Sudan (South and North) and Kenya, according to Uganda Export Promotion Board figures. Last year, Ugandan exports worth $268 million made its way to the DRC market.
Source: Uganda seeks DRC as alternative market to South Sudan - Business - www.theeastafrican.co.ke
