Masaka farmers, SMEs tipped on value addition to enhance export trade
Farmers, small and medium-sized enterprises (SMEs) proprietors in greater Masaka have been tipped on adding value to their products to benefit in exportation of their products.
The farmers involved in growing various crops such as food crops and coffee have been equipped with value addition skills and knowledge with an intention of enhancing their understanding of the economic potential of international trade and its benefits.
Winfred Ssembatya, The head of cooperate banking Absa Bank, says that they are committed to enhancing understanding of small-scale farmers and SMEs the economic potential of international trade and its benefits to attract the locals to enhance their export trade.
She says that the campaign in which has brought on board over 300 SMEs in masaka equipping them with entrepreneurship skills is running under a theme Growing Beyond Borders, and is going to be extended to the seven cities of Jinja, Masaka, Mbale, Mbarara, Lira, Arua and Kampala.
“SMEs tend to focus predominantly on domestic markets, neglecting lucrative opportunities for international trade. This is often due to lack of information, and limited abilities to invest in market research, logistics, compliance, and marketing. These challenges limit SME growth and therefore this program will enable businesses to look into external markets for opportunities,” Steven Kateihwaho, Commercial Director, DHL Uganda said.
Derrick Ssekitto, the Absa Bank Masaka Branch Manager, said that to drive economic growth, there is a need to provide entrepreneurs with essential business development services to grow their businesses.
He said that the program is designed to bridge the gap that isolates small scale farmers and SMEs from markets, opportunities, and access to capital adding that that is why Absa through partnerships and collaborations like that of DHL and Birungi and Barata Associates, the tax justice advocates are coming up to helps SMEs.
“Uganda continues to face a trade imbalance challenge and Ugandan products meant for export markets often face challenges that limit competitiveness including low quality assurance, failure to meet international standards, high exportation costs, financing difficulties; thus, making goods less competitive in international markets."
Export participation rates for traditional small businesses (those that typically do not sell online) range between 2-28% in most countries. In contrast, 97% of internet-enabled small businesses export, according to the World Trade Organization.
Kateihwaho said technology advancement, has enabled cross-border e-commerce which is the fastest-growing segment of international trade asking Ugandan entrepreneurs to embrace the innovation.
He noted that small businesses can become global by utilizing growing available inexpensive digital tools that allow them to source, ship, deliver, pay and collect various aspects of their operations online which can get them much more returns than those they can get on local markets.
“Through this program, we intend to support SMEs and farmers to develop products meant for export and establish linkages to global businesses which will help the SMEs grow into middles sized and later into big firms,” Kateihwaho added.
Charles Kevin Ssemambo, the Regional Manager Absa bank said that optimizing opportunities for international trade has significant benefits which Ugandans need to tap into.
He explains that E-commerce is fast-growing marketplaces, saying that payment gateways and online logistics can reduce barriers to trade across the border.
“We have developed tailor made financing solutions that meet the needs of SME’s and can be evidenced through unsecured loans of up to shs200 million, vehicle and asset financing of up to shs600 million, and we also help people do export financing, trade finance services such as letters of credit among other facilities or crafted to help business grow.”