You have been the Minister of Trade, Industry and Cooperatives since 2011. During your term so far, what progress has been made in terms of enhancing Uganda’s trade situation?  

There were many challenges when I came to the office, but I’m proud to announce that we have registered remarkable progress. The trade deficit was about $3.2 billion in 2011, but it dropped to $1.99 billion in 2016. This is attributed to stronger regional integration and more exports to other areas such as the EU, India and other countries in the East. In 2011, the total imports bill was $5.6 billion and in 2016 it was $4.89 billion – a drop of 12.5 per cent. That shows that the production levels have risen in the country, reducing the need for imported goods that we were previously relying on. In terms of exports, from 2011 to 2016 they shot up 8.8 per cent to $2.9 billion.

What accounts for this improvement?

An enabling business environment has been created through policies. In terms of new legal frameworks since 2011, we have approved several key pieces of legislation. We have enacted new policies on packaged water, cooperatives, grains leather, trade and services. We needed to formalise the business around our commodities and services. Ugandans living abroad also have made big investments in Uganda, and a significant amount of remittances are being sent by the diaspora. Before, it was rare – people had given up on Uganda, but today they see peace and stability and have realised that it’s a good time to invest. We have also enacted legislation on accrediting businesses. Our economy is based on Micro, Small and Medium Enterprises (MSMEs), but we lacked legislation. Now, we are registering these businesses, cataloguing them and monitoring them. The Buy Uganda, Build Uganda policy has also been part of our success.

Tell me more about the Buy Uganda, Build Uganda policy.

Let’s zoom into textiles as an example. We levied a tariff on second-hand clothes so that we can boost and establish the textile industry in our country, as did Rwanda and Tanzania. Now, the government is supporting cotton growers and we have told companies in the textile mills to buy local cotton instead of importing it from China. If they do that, the government will give them business. We started with uniforms. Now, police, doctors and school children wear uniforms that are bought from local producers. As a result, the mills have stepped up their production by installing more machinery because they can see that now they have a market. In the past, people had given up on cotton, but now production has been boosted. Buy Uganda, Build Uganda has been misunderstood, but before you export your goods you have to make sure they are competitive in the local market. So now, what has emerged is that people have improved branding and marketing because there is competition. We used to import everything and kill the local businesses before they had a chance to flourish.

The same is true for infrastructure development. In major projects related to oil and gas or building dams, foreign companies would come in with all the workers and materials, a practice particularly common in the case of Chinese projects. But now we have established that 40 per cent of the workforce must be Ugandan because there must be a local benefit. There was a Chinese company that wanted to build a cement factory here when we already had a local cement factory, but we resisted that. That kind of exploitation has been controlled and managed by Buy Uganda, Build Uganda.

In the past, if you went to supermarket, the shelves were full of imported items, but why rely on imported tea if we already produce it here? Coffee was also imported when we have the best coffee here. So, we determined that every supermarket must carry approximately 40-50 per cent of Ugandan goods, and we levied a tax on imported items. It’s a success story. Now, if you go to a supermarket, you’d be amazed with all the local products, and it has also helped the supermarkets.  

You have also been involved in negotiations to create the Africa-wide Continental Free Trade Area. What significance does the agreement have for Africa as a whole?

In 2015, the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC) and the Southern African Development Community (SADC) signed an agreement to officially launch the Continental Free Trade Area (CFTA). It’s a huge development. Many African countries are members of different regional integration blocks, and CFTA will facilitate and harmonise market access within Africa. That means that once in the African market, businesses will be able to access any country on the continent, as opposed to each country having their own rules, standards and procedures. Another advantage is that it will enhance intra-African trade through the substantial elimination and reduction of tariffs, which will help Africa to industrialise and take advantage of our market of 1.2 billion people. That would allow each country to focus on our strengths and competitive advantages, while also promoting regional trade. Instead of buying diamonds from Switzerland, let’s buy them from Botswana, where they’re produced. That is another way of being more self-reliant, but of course, we need science and technology from other countries as well. Another priority is infrastructure development and connectivity. If we are working on a railroad in Uganda, let’s extend it to another country to improve overall connectivity. That, in turn, will make Africa more competitive globally.

Besides the CFTA we have also taken important steps for facilitating trade. New policies on borders and transparency have reduced the clearance time for imports and exports by more than 25 per cent, and have reduced the time to cross the border by nearly 50 per cent. We have also worked on improving our standards and quality to increase exports. The EU market is particularly demanding, so we have retooled testing and calibration equipment and more than 60 MSMEs have achieved product certification against national standards.

Along the same lines, I want to thank the UK for its role in TradeMark East Africa, which has been an important development partner in facilitating trade. Before, countries used to donate or put their money in finance, but now they’ve come up with a new concept. They come to us and ask how they can help. We design the concept and they implement it, which is very good because it creates maximum transparency and maximum output.

In the most recent budget, the focus was on enhancing industrialisation. What is your strategy to industrialise Uganda?

We have realised that the most effective approach is bottom-up, so we are approaching cooperatives and giving them machinery to process whatever commodity is common in their area. And as people process their goods, the businesses keep growing. That is called the Rural Industrialisation Project and we have many success stories. More than 18,000 cooperatives are registered, with the majority being SACCOs and agricultural marketing cooperatives. Likewise, we have launched an entrepreneurial training programme and we are working with the financial institutions to create more financial inclusion.

What advantages does Uganda have that sets it apart as an investment destination?

When you look at the countries around us, our political situation is very stable. We have also had economic stability – look at inflation, which is now very low in Uganda. In countries surrounding us, inflation is a major problem and basic staples are much more expensive. We also offer a good variety of products. Uganda’s economy is fully liberalised and we offer a number of investment incentives that include exemption of import duty taxes on agricultural inputs and machinery, zero-rating of exports and duty drawback facilities. We also have Africa’s largest lake, increasingly developed infrastructure and a strategic location in the Great Lakes Region.

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In 2007, Uganda hosted an extremely successful Commonwealth Heads of Government Meeting (CHOGM) and President Museveni will attend the 2018 CHOGM in London. How would you describe the value of the Commonwealth for Uganda in terms of trade and industry? What changes and improvements would you like to see?

When the UK joined the European Union, I think the Commonwealth lost a bit of steam. But with Brexit, I can feel tremors of new movement, and when I talk to leaders from other countries, they also notice it. There is a lot that brings English-speaking communities together and the Commonwealth has been a platform for unity. But, in recent years, we have registered a decline in trade with the UK. The UK had been more interested in raw materials like tobacco and coffee, but now we are more interested in adding value. We can’t keep exporting raw goods. We have to find a common ground about how we want to work together in the future.  On a government to government level, we seek flexibility and reciprocity in our trade relations.

What new opportunities do you see emerging for Uganda and Britain to work and do business together?

We would like to attract more UK companies to invest and assemble cars in Uganda, manufacture drugs and establish an assembly plant for generators. The oil and gas sector also creates a wide varieties of opportunities throughout the value chain. There are also a wide array of possibilities in the trade and service sectors.  

We have significant historical and cultural links with the UK. And since our education system and other institutions derive from British institutions, the cultural ties are especially strong. Of course, the UK has left an impact on Uganda, and when I travel to former French colonies I can see that the British legacy has been positive. The French didn’t do as much in terms of leaving a sustainable legacy. I would like to thank all the British companies that have invested here and tell them that although Africa is the destination, Uganda is the hub. It’s the hub for trade, it is stable and it has a bright future. When they invest in Uganda, they can be sure that they’ll prosper in return for creating employment for our people and generating revenue.