Commercial and economic diplomacy is a concept that refers to the use of diplomacy to focus on the development of trade, business and investments between countries. The concept, thus aims at generating commercial gains in the form of trade, inward and outward investments between and among countries that have mutually exchanged diplomatic relations.
Countries pursue commercial diplomacy with the goal of gaining competitive advantage, better welfare for the citizenry, economic progress and transformation.
Having anchored on the concept of economic and commercial diplomacy as espoused above, it can be noted that Uganda’s Ministry of Foreign Affairs (MOFA) via Uganda’s Embassies and Missions abroad has been pushing for economic and commercial diplomacy for a number of years. To this end, several Foreign Service officers from the Ministry are posted to the various embassies and missions as designated Commercial Attachés. It is intended that these Attachés would market Uganda’s commodities, attractions and investments plus promoting Uganda’s investments, tourism and trade potential to the countries that they are accredited to. However, and unfortunately, most of our embassies and missions have continued to be more consumptive in nature than being able to generate trade, tourists and investment inflows for Uganda. This predicament can be attributed to a number of factors including but not limited to the following:
- Low budget allocation to the Embassies and Missions
- Being stuck to the traditional thinking of diplomacy
- Selection and deployment of manpower with requisite skills
- Lack of comprehension of the new paradigm shift in diplomacy
- Lack of adequate preparation
- Red-tape bureaucracy
Although, the above limitations continue to be constraints that hamstring Uganda’s Foreign Service in executing economic and commercial diplomacy, in the year 2016, the Ministry of Foreign Affairs in conjunction with the Ministry of Finance took a bold decision to pilot the concept with a few selected missions by providing funds for the purpose. Uganda’s Mission in Abu Dhabi, United Arab Emirates was chosen among those to benefit in this pilot. The results of this piloting with our mission in UAE have been not only satisfying, but also a true eye opener to the country’s approach to diplomacy.
During the recently concluded Ambassador’s Conference held at the National Leadership Institute (NALI) at Kyankwanzi, the benefits to Uganda as a result of practicing economic and commercial diplomacy was at full display when Amb Zaake W. Kibedi, Uganda’s Ambassador to the UAE made a presentation that outlined what the embassy had been able to achieve so far since his posting to Abu Dhabi in 2018.
Some of the highlighted achievements by the Uganda’s Embassy in the UAE which have been attained as a result of putting to practice the economic and commercial diplomacy approach can be summarized as follows:
- There has been an increase in export volumes of commodities from Uganda to the UAE; from 500 metric tons in 2018 to over 1,500 metric tons in 2022.
- There has been increased value of trade from US$ 600 million in 2018 to US$ 1.95 billion to-date, in favor of Uganda.
- There has been an increase in FDI inflow from UAE to Uganda, from $600million in 2018 to over $3billion in 2022.
- There has been an increase in remittances by Ugandans in UAE from US$ 50 million in 2018 to US$ 200 million to-date
- Elite Agro LLC, an Abu Dhabi based Agribusiness Company is to build 7 Tea Processing Factories in Uganda. Each factory is projected to cost US$25million totaling US$175million. These tea factories are to be established in Western Uganda, Zombo and Lugazi.
- MASDA Clean Energy Company expressed interest to invest $3billion in clean energy infrastructure and Minerals development in Uganda in a span of 4 years.
- AMEA Power Company is to set up two solar and wind hybrid power plants in Arua and in Moroto worth US$ 300 million.
- There has been an increase in the air traffic and passengers flow with airlines plying the Entebbe – Dubai route notably Uganda Airlines, Air Arabiya and Fly Dubai. These have been added to the 27 international airlines already connecting at Entebbe.
- An Abu Dhabi based company called Will Willey has notified us of their interest to invest in the cargo transportation with Uganda Airlines and Entebbe airport.
- There has been an increase in the volume of goods and services from Uganda to UAE.
- Gulf Trading Company based in Abu Dhabi has made an order for 1000 heads of cattle monthly for six months.
- Inspiro Company has made an order for 100 metric tons of Ugandan dry beans starting this month.
- G42, a leading technology company based in Abu Dhabi working with Sinopharm of China is to set up a vaccine manufacturing plant and transfer vaccine making technology to Uganda.
- Aleph Hospitality, a Dubai based hotel Management Company recently signed to manage two Ugandan hotels.
- Emirates Holiday and Fly Dubai Holiday have expressed readiness to add Destination Uganda on the list of countries to be marketed for tourism purposes.
Drawing on the exciting achievements that the embassy in the UAE has been able to register since 2018 and making these achievements in spite of the Corona 19 virus pandemic that almost shut down all economies globally including that of the Gulf States, it is now evident that close attention should be given to the concept of economic and commercial diplomacy. Our diplomats in the Foreign Service should no longer continue to behave and carry out their roles as they have been accustomed to do in the real traditional sense of diplomacy which emphasized public relations, cocktails/parties, geo, social, religious and political issues . There must be a new and drastic paradigm shift that encourages and aims at making these embassies stop being only consumptive but instead to be missions and embassies that do add value to the country’s aspirations for attaining social economic transformation through the attraction of increased trade, business relationships, investments and FDIs to Uganda.
From the practical perspective of the Uganda’s mission in Abu Dhabi; commercial and economic diplomacy has proved to bring more benefits to the country in the new era than traditional diplomacy. What is required is for this successful pilot to be scaled up in terms of funding and manpower at all embassies and missions so that the country can be able to reap the full benefits of the new thinking of diplomacy.
Written by Edward Baliddawa
