Kampala, Uganda | NOW THEN DIGITAL — Following US President Joe Biden’s decision to exclude Uganda from the African Growth and Opportunity Act (Agoa), the country faces a substantial loss of approximately Shs40 billion in export revenue. The termination, effective January 1, 2024, means Ugandan products will no longer benefit from preferential treatment in the US market under Agoa.
A statement from the trade representative’s office in December 2023 stated that Uganda, along with Central African Republic, Gabon, and Niger, failed to meet the requirements outlined in section 506A(a)(1) of the Trade Act, leading to the termination of their designation as beneficiary sub-Saharan African countries under section 506A of the Trade Act.
Agoa, enacted on May 18, 2000, allows duty-free access to the US market for over 6,000 products from beneficiary countries. Uganda’s exports to the US, which had grown from Shs4 billion in 2019 to Shs39 billion in 2022, will now suffer a significant setback. Textiles and agricultural products were among the major exports affected.
In November, Geraldine Ssali, the permanent secretary of the trade ministry, acknowledged potential negatives, such as job losses in labor-intensive industries like textiles. Despite this, she expressed confidence that Uganda could offset the loss by exploring alternative markets.
The termination from Agoa adds to a series of sanctions, including travel restrictions and threats of aid cuts, imposed on Uganda following the enactment of the Anti-Homosexuality Act in 2023. The US criticized the law as regressive.
In a Christmas message, President Museveni remained optimistic despite tensions with Western allies. He emphasized Uganda’s ability to stand independently, citing the country’s historical presence and strong communities. Museveni reassured that Uganda’s economy is growing, inflation is low, and external pressures will not deter the country’s resilience.
Fellow Ugandans and, especially, the Bazzukulu. Greetings.
I need to advise you not to be over-concerned by the recent actions by the American Government in discouraging their companies from investing in Uganda and on removing Uganda from the AGOA list.
Some of these actors in…
— Yoweri K Museveni (@KagutaMuseveni) November 5, 2023
