The Ugandan government is "fully committed" to boosting trade and investment with the European Union and exploiting "opportunities" still untapped, said Ugandan Trade Minister Amelia Kyambadde on Monday 9 March in Kampala at the opening of the first Uganda-EU Business Forum.
On the same day, the European Commission presented its ideas for a renewed continental partnership between the EU and Africa (see EUROPE 12442/1).
It is a fact: Uganda's economy - services (44%), industry (27%) and agriculture (22%), according to 2018/19 figures - is expanding and diversifying. Uganda's main merchandise exports to Europe have increased by 8.7% over the last five years, with Italy, the Netherlands, Belgium and Germany being the preferred destinations.
These are mainly non-manufactured goods - coffee (8th largest exporter in the world, first African exporter), flowers, fruit and vegetables - whose added value is lower than that of European imports, Ms Kyambadde noted.
In order to balance this situation, the Ugandan economy is called upon to create value added on its territory and foreign investment, which enables technology transfer and contributes to this.
Uganda is keen to highlight the country's political stability and good business climate, which attracts companies from all over the world, especially from Asia. It is "therefore not surprising that between 2010 and 2018, Uganda alone accounted for 13% of total foreign direct investment inflows into the eleven Eastern African countries", said the country's Prime Minister, Dr Ruhakana Rugunda. European investments come mainly from the Netherlands, Italy, France and Germany.
Ms Kyambadde also spoke of a fully "liberalised" economy, which she said is the envy of many of her African counterparts.
Sustainable development. One of Uganda's particularities is that it was one of the first African countries to deploy a green growth development strategy.
Head of the National Planning Authority, Pamela Mbabazi cited several innovative sectors where the skills and technologies of Europeans will be valued, including urban planning, sustainable energy production (e.g. solar-powered irrigation), mobility and responsible tourism. According to her, investing in the areas identified by the strategy would create four million jobs, generate three dollars for every one dollar invested and further accelerate by 10% an annual growth that Ms Kyambadde has estimated at "6.5%" of Uganda's GDP.
On Tuesday, the Business Forum will also be the occasion to officially launch the Sustainable Business for Uganda SB4U Platform, an initiative that will bring together the Ugandan government and private sector with the European Union to consider how to further improve the business climate in the country.
"Injecting private capital supports economic growth, creates jobs, protects the environment and helps to combat climate change", said Koen Doens, Director General for Cooperation and Development at the European Commission, in an audiovisual message to the participants. He referred to the new EU/Africa strategy, unveiled the same day, which focuses on investment promotion and the fight against climate change. He also welcomed the fact that Uganda is "the only country in East Africa" to have launched a programme for women and young people.
The day before, on International Women's Day, Ugandan President Yoweri Kaguta Museveni and EU Ambassador to Uganda Attilio Pacifici launched an initiative to empower women and to fight violence against women.
Many socio-economic challenges remain for this country bordering Lake Victoria, whose population, one of the youngest in Africa, is estimated at 45 million and is expected to double by 2050.
The fact that two million Ugandan babies are born every year is, for Patrick Bitature, Chairman of the Simba group, "the most important issue" for his country. It is when women are able to provide for themselves and "decide how many children they want to have" that gender equality will have taken a big step forward in Uganda, he said.
It is estimated that the population of Kampala, the country's capital, could increase from four to seven million in 15 years. Such a situation poses many challenges in terms of housing, mobility and use of resources.
Failure to respond quickly, in a world that is increasingly technologically connected, means ultimately taking the risk of reinforcing migratory flows not to China, but to Europe, observed one diplomat.
Facilitating productive investment in Uganda is also a priority for Europeans. To achieve this, Mr Pacifici identified three challenges: - skills and attitude; - access to financing and the high cost of capital; - economic governance and the fight against corruption, which, despite several government initiatives, remains common in Uganda.
EU/East Africa EPAs. At the opening plenary session of the forum, there was no discussion in Kampala of the Economic Partnership Agreement (EPA) agreed in October 2014 between the East African Community - which includes Burundi, Kenya, Uganda, Rwanda, Tanzania and, more recently, South Sudan (EUROPE 11576/11) - and the European Union.
The objective is to allow duty-free access for 100% of African products and to allow gradual asymmetrical liberalisation - between 15 and 25 years - of the African countries' market for 80% of European products.
While Kenya has ratified the EPA and Rwanda has signed it, Tanzania, which looks more towards Asia, has doubts and is seeking clarification before committing itself. Discussions between the EU and Dar es Salaam, which have been at a standstill for several years, could resume in the coming days.
In Uganda, the issue is a sensitive one, with the Ugandan President himself handling the matter. According to our information, the country's authorities would be ready to move forward provided that Tanzania does the same.
COVID-19. Of the 1,000 delegates registered for the forum, many European participants were unable to attend due to restrictions on entry into Uganda imposed by the Ugandan authorities on people from EU countries - Italy, Germany, France, Spain - most affected by the COVID-19 epidemic.
During the event, the only one of its size still allowed in the country, the temperature of the participants was taken several times and strict hygiene regulations were introduced. On the European side, apart from the 50 or so employees of the EU Delegation in Kampala and some representatives of the Commission and the EIB, the presence of representatives of the European institutions has, due to the epidemic, been kept to a minimum.
"Uganda is safe while Europe is going through a crisis", Mr Pacifici said. Another one. (Original version in French by Mathieu Bion)