The Ugandan government, in partnership with the Private Sector Foundation Uganda (PSFU), has launched the Trade Frontier Fund aimed at generating an additional $6 billion (about Shs22.4 trillion) in exports over the next five years.
KAMPALA, UGANDA | NOW THEN DIGITAL — The government of Uganda, in partnership with the Private Sector Foundation Uganda (PSFU), has launched the Trade Frontier Fund to drive growth in exports and generate an additional $6bn (about Shs22.4tn) in the next five years.
President Yoweri Kaguta Museveni officially launched the fund last week, highlighting the importance of returnable resources to the private sector to support invoice factoring, working capital, recapitalisation, research and value addition.
“The Trade Frontier Fund will help exporters to underwrite their invoices and provide them with working capital. We will continue to increase this fund. I thank the Private Sector Foundation, UNDP and others who have joined the efforts to increase our exports, drive manufacturing and industry and support the private companies,” Museveni said.
Boosting tourism and agriculture
The Trade Frontier Fund aims to boost exports in tourism and agriculture, with particular emphasis on coffee, dairy, fruits and vegetables, among others. The Presidential Advisory Committee on Exports and Industrial Development, the Science, Technology, and Innovation Secretariat, and PSFU jointly developed the fund.
Ms Sarah Kagingo, PSFU Vice Chairperson, said the fund would help address funding gaps and stabilise supply chains, providing access to market information to boost exports.
“As private sector, we welcome the establishment of the Trade Frontier Fund which is expected to transform the entire trajectory of exports in Uganda. We wish to thank the President of Uganda and the government for committing seed funding to kick start Trade Frontier Fund.”, Kagingo said.
Transforming Uganda’s export trajectory
Uganda’s balance of payment deficit has been increasing with imports almost doubling export earnings. To address this, the fund aims to transform Uganda’s export trajectory by supporting the private sector to access export markets.
Mr Odrek Rwabwogo, Chairperson of the Presidential Advisory Committee on Exports and Industrial Development, said the fund would market the country jointly to sync tourism and agriculture, “to bring forward what people don’t see every day”.
Outlook
Uganda is heavily reliant on agriculture, which accounts for 80% of its total exports. Coffee is the most important export, making up 22% of total exports. Uganda’s main export partners include Sudan, Kenya, DR Congo, Netherlands, Germany, South Africa and the UAE.
The Trade Frontier Fund is expected to drive economic growth by supporting the private sector to access new markets and increase exports, which will help to reduce the trade deficit and support sustainable economic growth.
The Trade Frontier Fund will sync tourism and agriculture by marketing the country jointly, “to bring forward what people don’t see every day,” said Mr. Odrek Rwabwogo, the Presidential Advisory Committee on Exports and Industrial Development chairperson.
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