Uganda and Nigeria are seeking to diversify bilateral trade beyond raw and processed commodities into manufactured goods, technology and services, as the two countries move to deepen commercial ties under the African Continental Free Trade Area (AfCFTA).
Minister of State for Trade General Wilson Mbasu Mbadi said existing trade between the two countries remains far below their potential, despite growth in recent years.
“When we examine our bilateral commercial numbers or figures, one thing becomes immediately clear: that our trade is growing, but we have barely scratched the surface,” Mbadi said during the Uganda-Nigeria Business Forum in Kampala.
He said Uganda’s exports to Nigeria have been driven predominantly by raw and processed tobacco, specialised agricultural commodities and animal products, while imports from Nigeria have largely included rubber products, poultry supplies and technical equipment.
Mbadi said the two countries should now broaden their trade baskets to include manufactured goods, processed foods, technology and services.
“This trade imbalance and modest volume must serve as our call to action. We must diversify our trade baskets into manufactured goods, processed foods, technology and services because the market is there,” he said.
Mbadi said Uganda’s attraction for Nigerian investors extends beyond its domestic market, with the country’s regional trade arrangements providing access to wider markets in East and Southern Africa.
“When a Nigerian invests in Uganda, he’s not only focusing on the 50 million people in Uganda. You actually have access to the East African Community market,” he said.
He also pointed to Uganda’s membership in COMESA and AfCFTA as additional opportunities for Nigerian companies seeking to expand their operations across the continent.
Uganda, in turn, is seeking greater access to Nigeria’s large consumer market and stronger commercial partnerships with Nigerian businesses.
Ambassador Phillip Odida, Chargé d’Affaires at Uganda’s High Commission in Abuja, said the AfCFTA provides a framework for expanding intra-African trade, building value chains and enabling businesses to access markets across the continent.
“It’s time for Africa to circle our wagons and deal with trade amongst ourselves. That’s the way we will grow,” Odida said.
He said Nigeria brings a large and dynamic market, strong private-sector capabilities, financial and industrial expertise, technology and innovation, while Uganda offers opportunities in agriculture, agro-processing, manufacturing, pharmaceuticals, minerals and mineral value addition, ICT, energy and tourism.
Odida said the three-day business forum provides an opportunity for businesses from both countries to move beyond dialogue through sector engagements, exhibitions, investment showcases, business matching and field trips.
He said the success of the engagement should ultimately be measured by the partnerships formed, investments mobilised, markets opened, businesses created and jobs generated.
Ambassador Richard Kabonero, Head of Regional Economic Cooperation at the Ministry of Foreign Affairs, said Uganda is seeking to expand its commercial footprint in West Africa, with Nigeria offering a potentially important gateway into the region.
He said Uganda’s pharmaceutical industry, including Quality Chemical Industries Limited, has already demonstrated the potential for Ugandan products to access the Nigerian market.
The forum, held under the theme “Enhancing Business Linkages and Market Access through the AfCFTA Framework,” brings together government officials, investors and business leaders from Uganda and Nigeria to explore trade, investment and private-sector partnerships. The engagement is intended to translate the countries’ longstanding political relations into stronger commercial ties.
