Why Turkey may Emerge as a Budding Trade Partner for Uganda

By Cem Perdar

Since the beginning of 2021, there has been an inflation crisis around the world. Important actors of world politics, especially Argentina, Iran, Romania, Lebanon, Russia, Ukraine and Turkey, were seriously affected by the economic earthquake that occurred due to the Covid-19 pandemic and found themselves in the fight against high inflation. The fact that the US dollar experienced serious fluctuation especially against the local exchange rate in these countries started to tire both the producer and the consumer financially.

For example, in Turkey, due to the unstoppable increase of the US Dollar rate, coupled with serious inflation, the purchasing power of the people has weakened and commodity prices have gone up. With these hikes, the country is seeking a way out by increasing production and exporting.

In my opinion, the African continent stands out as one of the most important partners, considering Turkey’s efforts to increase exports. Like every developing country, Turkey is a manufacturer that exports more than it imports. Underneath this, there is the goal of closing the current account deficit, bringing more US Dollars into the country and ensuring the flow of hot money to the markets. For this reason, the Turkish market can be a very attractive channel for Ugandan investors. In fact, there has been a serious increase in business volume between Turkey and Uganda for the last 10 years. On the other hand, exporting to Turkey can create huge opportunities for Ugandans as well.  In the last 5 years, Ugandan exports to Turkey have doubled signaling an enduring bond between these two countries.

With the significant increase in US Dollar value in Turkey, exporting to new markets has become the most important prospect for the manufacturers. The fact that the product manufactured at the end of the day is exported in dollars rather than being sold in the domestic market provides a serious advantage for the manufacturer. Ugandan investors can now tighten commercial relations with your distant neighbor Turkey since the Turkish export door is wide open, ready to sell its top-quality products at the most reasonable price. As I mentioned in my previous articles, Turkey is a manufacturer that produces the highest quality products in the fields of machinery equipment, construction materials, textiles, food products and cosmetics and has an important market in the world market. With the increasing dollar rate, Turkey is becoming a reasonable visit point for foreign visitors both in terms of daily expenses, hotel prices and domestic transportation.

As an exporter, I can say that I have shifted my recent business focus to the Ugandan market. I can observe that the Ugandan market has returned to normal, especially with the end of the pandemic lockdowns. With the opening of the economy on the horizons, I predict that the business volume will increase immensely. While the ready Uganda market is on a serious rise, the economic situation in Turkey may create serious business opportunities for both countries. The relations between the business people of the two countries may lead to important steps in trade volumes. Turkey needs Uganda to close its current account deficit and inflow of hot money into the country. Uganda, on the other hand, has a very high chance of making favorable commercial purchases by using Turkey’s economic situation in a positive way.

Cem Perdar is Export Sales Manager/Africa at Pakmaya, Pak Holding