Uganda is losing between US$100 to $180 million (UShs678bn) annually due to trade interruptions in the European markets caused by its failure to meet required standards.
This was revealed by Odrek Rwabogo, the special presidential advisor on export promotion while addressing journalists at the African Regional Standards Organisation-ARSO meeting aimed at harmonizing African product standards.
Uganda primarily exports horticultural products such as fruits and vegetables to Europe, with a total export volume of 5.8 million tons worth EURO 350 million. However, this figure pales in comparison to Nigeria, which exports 11 million tons, making it the largest exporter of such products in sub-Saharan Africa.
The interceptions by European standards that keep changing are causing the loss of trade opportunities for Uganda. Rwabogo assured the media that the government is working with all the responsible entities to resolve this problem. The solution, he explained, involves not only meeting European market standards but also ensuring the safety of the Ugandan market.
Although the monetary loss may seem insignificant, the damage to Uganda’s reputation is much more significant, as trade is limited and people begin to question the country’s standards.
Data shows that between 2016 and 2020, Ugandan exports to Europe were intercepted 27 times, resulting in a decline in export income from EURO 452 million in 2017 to EURO 350 million in 2020. The ARSO meeting, which runs for three days and has the participation of 13 African states, aims to harmonize African product standards to facilitate trade among African countries.
According to Livingstone Ebiru, the Executive Director of the Uganda National Bureau of Standards, developing harmonized product standards for the continent will enhance trust in African products, reduce dependence on products sourced outside of Africa and help develop comparative advantages among African countries.
Ebiru stated that the experts present at the meeting are responsible for writing standards for products across all sectors. The emphasis is on what each country produces best, and the meeting represents member states from different economic blocks on the continent. The experts are focusing on where countries have comparative advantages over others.
Hermogene Nsengimana, the ARSO Secretary-General, highlighted the African Continental Free Trade Area’s significant opportunity, which will break down trade barriers in Africa and make it easier to control sub-standard products from the entry point into the continent.
According to Nsengimana, there is a need for a mindset change among African consumers, who mainly prefer foreign products to African ones. The enforcement of these standards needs to be enhanced by the authorities as well, as standards are being developed.
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