How To Invest In Global Markets With Ease

How To Invest In Global Markets With Ease

Exports are the backbone of modern economies, expanding markets and driving foreign policy. For Uganda, over 90% of its exports come from plant and animal products, requiring specific documentation depending on the type of goods.

According to Mr. Ogwech, head of cargo and logistics at Uganda Airways, an airway bill is essential—acting as a “passport” for cargo issued by the airline. Exporters must also present a packing list and a commercial invoice. If the shipment has no commercial value, a nil invoice is required. These documents complete the necessary transport paperwork.

For general cargo, the process is straightforward but varies depending on the specifics. For example, spare parts with oil residues or fuel systems are classified as dangerous goods, requiring additional certification for safe air transport. However, these items make up a smaller share of Uganda’s exports.

The majority of exports fall under perishables such as fish, fruits, vegetables, and flowers, which require specialized documentation. A phytosanitary certificate, issued by the Ministry of Agriculture, confirms that the goods have been inspected, are pest-free, and meet international health standards. This document is crucial both at departure and upon arrival, where foreign agricultural authorities verify compliance with their regulations. Mr. Mugisha notes that Uganda’s hot pepper, for instance, has occasionally been banned from the European Union (EU) market due to excessive pesticide residues, underscoring the importance of adhering to global standards.

For fish and meat exports, a health certificate is required. Uganda primarily exports fish by air, with much lower volumes of meat exports. A complete set of export documents typically includes a phytosanitary or health certificate (depending on the product), a packing list, a commercial invoice, sometimes a certificate of origin, and the mandatory airway bill—ensuring a smooth export process.

Ugandan exporters face several challenges. One of the biggest setbacks is the dominance of semi-processed products, which limits access to premium international markets. Value addition could unlock greater opportunities and higher revenue. Packaging quality is another hurdle. Unlike competitors whose products land directly on supermarket shelves in Europe and the Middle East, Uganda’s exports often require repackaging, reducing competitiveness.

The cold chain remains a significant weakness. Many exporters of perishables, such as matooke, hot peppers, and vegetables, lack refrigerated trucks. Instead, products are transported in open-back vehicles covered with tarpaulins, leading to heat exposure and spoilage. Fish exporters, however, must use refrigerated trucks due to stricter handling requirements. Uganda Airways is working to mitigate these challenges by pre-cooling containers in cold rooms before loading, ensuring products are maintained at optimal temperatures. Additionally, efficient offloading, weighing, and cooling processes help maintain quality before departure. However, broader investments in refrigeration infrastructure and improved packaging are necessary for Uganda to compete in global markets.

Limited air transport options and high costs pose another challenge for Ugandan exporters. Compared to neighboring countries with better connectivity, Uganda has fewer airlines operating dedicated cargo aircraft. During peak seasons, passenger flights prioritize travelers and baggage, leaving limited space for cargo. Additionally, many major cargo airlines have redirected their freighters from Entebbe to more profitable transatlantic and European routes, driving up freight costs for Ugandan exporters.

For instance, shipping perishables to the Middle East costs between $10 and $20 per kilogram, while rates to Europe stand at around $2 per kilogram. To counter this, Uganda Airways is working to reduce transportation costs, offering shipping to Dubai at just $0.90 per kilogram. The airline also plans to open new routes to London and establish partnerships with European trucking firms to lower costs further. These efforts aim to eliminate exporters’ reliance on Nairobi or Kigali for more affordable freight options. Uganda Airways’ strategy aligns with its mandate as a government infrastructure project—to boost exports and enhance productivity. With continuous improvements in pricing and connectivity, the airline hopes to offer Ugandan exporters a competitive edge while supporting the country’s broader economic growth goals.

Uganda’s agricultural exports have significant global potential due to their superior taste and organic nature. Pineapples, apple bananas, and oranges from Uganda are known for their unique flavors, making them stand out in international markets. The country’s favorable climate and minimal use of chemicals give its produce a competitive advantage in terms of natural quality. However, logistical hurdles continue to limit this potential.

A major concern is poor phytosanitary controls. Some exporters bypass proper inspections, sourcing produce directly from markets or farmers and shipping them as passenger baggage to destinations such as the Middle East. Without adequate cleaning, processing, or certification, these products risk arriving in poor condition, damaging Uganda’s reputation despite their superior taste. Strengthening packaging and ensuring adherence to global phytosanitary standards are crucial to unlocking Uganda’s full export potential. By implementing these improvements, Uganda’s agricultural products can stand out not only for their flavor but also for meeting the safety and visual expectations of high-value global markets.

Air exports can be lucrative, but they require capital and strategic planning. Volume efficiency is critical—moving larger quantities reduces costs per kilogram and enhances bargaining power with airlines. For example, exporting over three to four tonnes to Dubai is commercially viable, whereas smaller shipments, such as 300 kilograms, often yield little to no profit due to high per-kilo costs.

To succeed as an exporter, businesses must first understand the process by familiarizing themselves with export requirements, documentation, and logistics. Registering a company and obtaining the necessary export licenses is also essential. Engaging a customs agent to guide the paperwork and clearance process streamlines shipments. Additionally, exporters should focus on achieving minimum weight thresholds to maximize profitability. Uganda Airways has been actively providing advisory services to exporters and potential exporters, guiding them through the logistics of airfreight.

One of Uganda’s most notable export success stories is Ms. Rachel Kabanda, the founder of Kabu Leather Works. For 13 years, her company exported leather and fabric home décor, as well as fashion accessories such as bags, pillows, shoes, and jewelry to the U.S.—until Uganda’s suspension from the AGOA trade program.

Her journey was not without challenges. Ms. Kabanda recalls the difficulties of adapting to foreign market preferences, especially in the U.S., where fashion trends change by season. She notes that in Uganda, weather conditions can shift throughout the day, whereas in the U.S., production must align with summer, spring, fall, or winter collections. Initially, she focused on designs that reflected her Ugandan identity, only to learn that American consumers had vastly different tastes. Adapting to international fashion trends became crucial, particularly in a market dominated by global giants like Shein, Gucci, and H&M.

She explains that her business focuses on ethical fashion, while larger brands produce fast fashion. Competing with multi-billion-dollar companies on limited resources has been a challenge. She also highlights the lack of government support, noting that Uganda offers little in terms of regulations, export incentives, or financing for businesses like hers. Despite these challenges, Ms. Kabanda’s success underscores the potential for Ugandan entrepreneurs to break into global markets—with the right knowledge, adaptation, and perseverance.

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