Uganda is a thriving economy with lots of potential, waiting to be tapped into, H.E Jan Sadek, the Ambassador of the European Union to the Republic of Uganda has told European companies and investors attending the 2024 Uganda-European Union Business Forum at Speke Resort Munyonyo, Kampala, Uganda.
“Come to Uganda, seize the opportunities offered by the Pearl of Africa and the region. We will all benefit from those partnerships,” Jan Sadek told delegates at the Forum.
The 3-day Business Forum, now in its third year is organised by the EU Delegation to Uganda together with its Member States, in partnership with the Government of Uganda, the Private Sector Foundation Uganda (PSFU) and the Uganda Investment Authority (UIA), under the Sustainable Business for Uganda (SB4U) Team Europe Initiative.
Held under the theme, “Boosting Trade and Investments⏤ What can Uganda gain from the Global Gateway?”, the key objective of the Forum is to attract European investment in Uganda and to increase trade and notably Ugandan export to the EU.
The first two forums, held in 2020 and 2022 brought together over 2,800 physical and virtual participants. The 3rd edition has attracted more than 3600 individuals online and physically. Representatives from various European Union Member States, including France, Germany, the Netherlands, Italy, Belgium, Denmark, Sweden, Ireland, Portugal, Austria, the Czech Republic, Poland, and others, attended.
Also in attendance were representatives from key European Development Finance Institutions such as Agence Française de Développement (AFD), Proparco, European Investment Bank (EIB), Kreditanstalt für Wiederaufbau (KfW Development Bank, GIZ, Enabel, FMO: Dutch Entrepreneurial Development Bank and European Development Finance Institutions (EDFI)
Uganda’s President Museveni headlined the Forum, flanked by his ministers, Hon. Kasaija, Minister of Finance, and Economic Development; Hon. Anite, State Minister for Privatization and Investment, Hon. Francis Mwebesa, Minister of Trade, Industry and Cooperatives and Hon. Bright Rwamirama, the State Minister for Animal Industry.
The European Commission’s Deputy Director General for International Partnerships, Myriam Ferran; Mr Andrea Clerici, the European Investment Bank Director of Corporate Finance and Global Activities and Madame Marie-Hélène Loison, the Deputy Director General of the French Development Agency (AFD) also graced the Forum. The Chair of the Private Sector Foundation Uganda, Humphrey Nzei and the Chair of the Uganda Investment Authority, Morrison Rwakakamba were also in attendance.
“Our commitment remains twofold: to attract new companies and investors from the European Union and the region while continuing to support those already invested in Uganda,” Jan Sadek said.
President Museveni calls for mutually beneficial trade relations
At the Forum, President Museveni reiterated the importance of having mutually beneficial business and trade relations between Europe and Africa.
He said trade relations that only encouraged the import of raw materials from the developing world created unfair division of labour in the world and cost the developing world a lot of value and jobs.
“When you are exporting a raw material, like coffee, I will take an example. If you check your internet, you will see that the global value of coffee now is about 460 billion dollars. However, all the coffee-producing countries in the world, like Brazil, and Uganda, share 25 billion of the 460 billion dollars. From the 25 billion dollars, Africa shares 2.5 billion dollars, and Uganda takes 900 million dollars. And why this? It is because, for very good quality coffee, a kilogram is 2.5 dollars, and when somebody adds value to it, he gets 40 dollars in Europe. So, I’m losing value for money but also losing jobs because the coffee value chain, like roasting, grinding, and packaging, are all job levels that are taken out.”
He further welcomed European companies investing in Uganda, saying it is very necessary for both Ugandan and European companies.
“Europeans investing here is common sense and strategic,” the president emphasised.
Jan Sadek said that the EU-Ugandan trade and investment relationship was already doing remarkably well and that the numbers spoke for themselves.
“The EU’s share of Foreign Direct Investments in Uganda was in 2022 more than 40 per cent of the total or €1.2 billion. On the trade side, I’m delighted to affirm that the European Union and Uganda have a very healthy trade turnover, currently of €1.5 billion or UGX6.2 trillion,” he said adding: “Since 2022, Uganda has had a positive trade balance with the EU. In 2022, Uganda exported €800 million and imported €700 million from the EU. This is very different from Ugandan trade with other global partners, where the import dominates. Trade is not a competition and it is not a zero-sum game”.
“When I look at the trade statistics, I can see a doubling of the Ugandan exports since 2020. I think it is difficult to claim absolute causality, but I would want to believe that the Business Forums have contributed somewhat to these impressive figures,” Jan Sadek told the Forum.
“One of the largest export products to Europe is coffee and the EU buys 65 percent of Uganda’s coffee export. I’m a coffee enthusiast myself, for its taste but also for the role it plays in bolstering Uganda’s economy. I see coffee as a delicious and beautiful link between Uganda and the EU. When European coffee drinkers have their coffee in the morning, they create livelihoods for 3.5 million Ugandan families! Isn’t that fantastic!,” Amb. Jan Sadek reiteterated.
“I think that the EU-Ugandan trade and investment figures speak for themselves –Uganda is open for business! Recently, IMF put it this way, “Uganda’s economy “has emerged as one of the stronger performers in the region” and “Uganda’s economic prospects are expected to remain robust”. In addition, Ugandan growth figures are impressive, with 6.7 per cent projected for 2024. And last month, Uganda was delisted from the Financial Action Task Force grey list,” Jan Sadek appealed to European investors, adding: “Obviously also the EU is open for business”.
Speaking about the Global Gateway, Ms. Ferran said that the Global Gateway is the EU’s strategy to support economic development, foster sustainable investments in connectivity and engage with the private sector to achieve transformative change.
“It is a distinctively European offer. We work with partner countries like Uganda to address their own priorities in support of shared objectives. And we do so in a rules-based and sustainable way. Our partners know that when they choose to team up on Global Gateway projects, the EU offers attractive financial conditions to reduce risks and improve debt sustainability. Projects are inclusive and transparent, ensuring the highest environmental, social, and labour standards. Our quality projects help build trust,” Ms. Ferran Said.
“One of the main financing tools of Global Gateway is the European Fund for Sustainable Development Plus (EFSD+). Offering a variety of risk-sharing instruments, the EFSD+ aims to mobilise up to €135 billion of public and private financing to help partner countries achieve the Sustainable Development Goals (SDGs),” she further explained, adding: “We are deploying all the instruments in the European tool bag,” she added.