1. Let’s trade our way out of poverty
Trade policies may not really sound important to any ordinary Ugandan including myself but according to
research and studies fighting consumer protection barriers on trade can actually help in improving
incomes of the poor.
Uganda has been able to implement significant economic reform including a liberalization of the trade
regime, over the last decade and a half thanks to the EAC and COMESA integration. This has attracted
foreign direct investment mainly in manufacturing and contributed to the continued economic growth.
Indeed over the past 6 years, Uganda’s realGDP has grown at around 6%per annum on average and is
expected to continue growing at about 7% per year in the medium term. These are some of the
observations contained in a WTO report on trade policies and practices in Uganda. According to the
report, financial discipline has brought the fiscal deficit(including grants) below 3% of GDP and
inflation has dropped including the economic environment .Uganda’s fiscal policy is expected to remain
largely unchanged although there will be a great focus on expenditures to promote exports of
agricultural products and a need to continue restructuring the Uganda revenue authority to increase
public revenue. Agriculture in this regard accounts for around 42% of real GDP and 80% of employment:
coffee is the main export (over 50% of total merchandise exports in value).
Insufficient infrastructure, coupled with Uganda’s landlocked status has impaired the growth of its
exports and economic progress. That is not the only hindrance though because being a developing
country, the advocacy has centered on increased food production yet neglecting quality needed to actually
meet market standards. This pre-occupation was cited with the National Agricultural Advisory services
(NAADS) that was brought on board to support farmers to improve their incomes yet neglected the
quality of the produce.
Improving incomes
Because of the insufficient purchasing power of the poor, the question of how to increase farmers’
incomes through trade of their produce still stands. This is because trade liberalization alone without
awareness of the local farmer is not enough.
This in Uganda has persistently been neglected until civil society organizations have come up to support
communities in collaboration with local governments to raise the income of the farmers in some of the
communities.
The CSOs have hence played a big role in improving Uganda’s trade within the region where they have
dealt with the communities and local government to improve the quality of farmers produce thus enabling
them cope with the competitiveness and meet set market standards.
This has for example been cited in Nakaseke district whose residents mostly depend on maize growing.
Trade Mark East Africa in collaboration with SEATINI came up to help in developing the Local
Government maize ordinance 2015. This was the first ordinance to be developed in Uganda specifically
for maize production and trade. The ordinance has thus helped in regulating the maize industry in the
district and ensured the production of quality maize which meets set market standards. This has therefore

2. helped in setting better prices for farmers and traders thus tackling poverty within Ugandan farmers in the
district
It should be noted therefore that Uganda has a wide market opportunity for agricultural produce due to the
EAC and COMESA integration. Although it’s quite unfortunate that given the high demand within the
region, it is still difficult for us to satisfy even half way. For example Uganda’s export potential is
estimated between 200,000 and 250,000 Metric Tones of maize per annum and we are only able to export
only half of this. This definitely leaves uncovered gap.
So according to research and studies, the cause of Uganda’s low penetration in the formal trade market at
both regional and international markets is because of the poor quality produce yet it largely survives on
agriculture. This is confirmed with a few examples like the self imposed ban on pepper by Ministry of
trade, industry and cooperatives following quality concerns from the EU and the Tanzanian 2013 incident
of 15,000MT rejection of maize from Uganda.
Way out
One thing is for sure, no country has ever raised itself out of poverty without international trade. Thus
trade is key for a country’s development although it needs the right conditions for the sectors involved in
the cycle to flourish. The national trade policy envisages transforming Uganda into a dynamic and
competitive economy in which the trade sectors stimulates the productive sectors thus trading the country
out of poverty into wealth and prosperity. If this is achieved, I believe the local farmer at the grass root
will gain a lot more from his produce.
According to a report released by African Centre For Trade and Development (ACTADE) on marketing
challenges and infrastructural needs of small scale agricultural producers in Uganda in 2006, some
pointers towards production and trade excellence were given. These included;
 Profitability of the local farmer who can be taught about minimization of production, transaction
costs and maximization of income leading to increased profits.
 Export potential where availability of and size of the exports markets for the products is achieved.
 Availability of infrastructure; the presence of infrastructure required for optimal production,
processing/value addition and marketing is key in the promotion of exports and trade in that case.
 Availability of appropriate technology and advice: Farmers’ access to appropriate technology
(improved varieties of crops and breeds of animals) that meet set quality standards can lead to
improved production and profitability.
 Available and potential market opportunities: Markets’ access is attained through production of
sustainable supply over periods for which the markets demands them. This allows for exploitation
of niche regional and international export markets through specialization in production as well as
establishment of effective domestic markets.
 Public/Private sector partnerships: Private/public partnerships offer opportunities for input supply
as well as markets for farm products.
 Private sector plays an important role in enhancing market linkage and flow of production inputs
into specific enterprise/products.

3.  Potential for specialization (production niches): Agro-ecological and location considerations
allow for production of limited volumes of unique products to meet the demands of niche
markets. These could be for organic products or spices.
These key factors were identified as suitably to the agro-ecology, profitability levels, export potential,
opportunities for value addition. So if considered alongside trade liberalization that Uganda has
achieved, we shall achieve improved incomes, health and safety of Ugandans. This can hence
increase the export power and thus boost economic development. A way to trade ourselves out of
poverty.
Ninsiima Lydia