By Gerald Baganzi
As we close in on year two of it’s existence, PACEID is transforming Uganda’s Production structure to boost exports.
In order to experience huge growth in our export trade, Uganda should diversify its partners hence expansion of its export basket. This diversification however should be matched by changes to the variety of products that Uganda sells. Expanding uganda’s export basket to include more processed and manufactured products. We keeping losing out significantly as long as our goods are exported in raw form.
Africa currently spends billions of dollars a year on food, beverages and tobacco. Out of this, close to half the amount is spent on food imports alone. With the growing population in Africa, forecasts show that this would increase unless domestic production is scaled up.
One of the major Challenges to Uganda’s export trade has been relying on two or three resource commodities. Even the few commodities on our export market have been challenged by the weak value addition.
Investment capital is important for driving structural transformation and improving competitiveness in the early stages of economic development.
Uganda has had high growth rates for much of the time since the 1990s, but this has often been based on few production lines that have not been diversified or have been based on an unsustainable dependency on low technology.
With the help of PACEID, Uganda can diversify its exports by venturing into new sectors and products or by adding value to existing products on the market.
Our production remains tilted towards low technology intensive resource commodities in agriculture and the extractive industries. Farmers have a low uptake on advanced production technology and know-how. There is need for incentives or infrastructure support to local business people setting up factories especially those with interest in export trade.
Here PACEID has a critical role to play. We must create an environment that facilitates and enables private sector to flourish. We need to get organized and set our priorities right as a country.
