Export within Africa before chasing overseas markets, EABC tells Ugandan firms

KAMPALA — Ugandan businesses should build their export strength within East Africa and across the wider continent before chasing distant overseas markets, a senior regional business leader has said.

Oscar Kamukama, the East African Business Council (EABC) director representing Uganda, said the region offered a large but underused market that local manufacturers, farmers and service providers had yet to fully exploit. He was speaking at the 7th Bi-Annual Private Sector CEOs Retreat, part of a session organised by the Office of the Prime Minister, the Ministry of Trade, Industry and Cooperatives and the Presidential CEO Forum.

“Before we rush to export outside, let us first export inside. Let us trade amongst ourselves. If we cannot trade amongst ourselves, who is going to trade with us?” Kamukama said.

He pointed to EAC trade figures showing that the bloc recorded US$156.7 billion in total trade in 2025, but only US$19.7 billion — about 12.3 per cent — was traded among member states.

According to the EAC, the Community has grown into one of Africa’s largest integrated markets, with a population of more than 331 million people and a combined gross domestic product of approximately US$357 billion, though intra-regional trade remains well below its potential.

Kamukama argued that success for Ugandan manufacturers should not be measured mainly by sales to Europe, Asia or other distant markets. Companies should first establish a strong presence in neighbouring countries, he said, before scaling up across the rest of Africa and into global markets.

The opportunity extends beyond the EAC through the African Continental Free Trade Area (AfCFTA), which connects a market of roughly 1.4 billion people with a combined GDP of about US$3.4 trillion. Wider access to those markets, Kamukama said, could give a bigger customer base for locally manufactured goods, agricultural products and processed commodities, and encourage firms to invest in larger-scale production.

Uganda’s industrial strategy should therefore focus on building competitive products for East Africa first, expanding across the continent and pursuing international markets at the same time, he said. The approach should not be read as turning away from Europe or other global destinations, he added, but as making better use of markets that are geographically closer and potentially easier for Ugandan firms to reach.

Cross-border trade in the region nonetheless remains costly and unpredictable. The EAC has attributed low levels of intra-regional commerce to persistent non-tariff barriers, regulatory inconsistencies, infrastructure bottlenecks and limited access to finance, particularly for micro, small and medium-sized enterprises. Traders also cite high transport costs and delays at border crossings that add to the final price of goods.

The Community has set a target of raising the share of intra-regional trade to 50 per cent by 2030, a goal that underscores the room for growth in commerce among member states. For Uganda, meeting it could mean moving beyond the export of raw commodities towards greater processing and manufacturing, allowing more value to be retained in the country.

The push for stronger regional trade comes as Uganda seeks to expand its industrial base, lift exports and create jobs for its growing population. A larger regional market could give Ugandan firms the scale to invest in machinery, improve product standards and build supply chains able to compete internationally, Kamukama said.

“We have the capacity. We have the logistics there. So let’s believe in ourselves. The opportunity is now,” he said.