Uganda and Somalia Aim to Double Trade to Over $8 Million
Uganda is targeting a significant increase in bilateral trade with Somalia, aiming to double current trade volumes to over $8 million. This ambitious goal is part of the ongoing efforts to strengthen economic ties under the Uganda-Somalia Joint Permanent Commission (JPC). According to Vincent Waiswa Bagiire, Uganda’s Permanent Secretary for Foreign Affairs, the partnership between the two nations is driven by their shared commitment to Pan-Africanism and Ubuntu, ensuring that regional cooperation moves from rhetoric to action.
Expanding Uganda’s Export Basket
Bagiire, speaking at the Second Session of the JPC in Kampala, highlighted the importance of trade in their bilateral relations. He revealed that Uganda’s exports to Somalia have grown from below $1 million in 2022 to approximately $4 million annually. The exports primarily consist of agricultural products, manufactured goods, and even aircraft parts. This growth signals confidence and resilience despite Somalia’s security challenges.
“There is a notion that Somalia’s challenges are permanent — they are not,” Bagiire noted, drawing comparisons with Uganda’s past security issues. He emphasized that Somalia has stable regions with functioning markets and untapped investment opportunities.
Key Export Areas and Smoother Movement of Goods
Uganda aims to expand exports in food produce, cement, beverages, and education services to Somalia. A key part of the strategy is ensuring the seamless movement of goods and people through better coordination between Uganda Revenue Authority (URA), the Ministry of Trade, and Immigration Services.
“We bring all actors together to ensure the flow of goods, services, and persons is as seamless as possible,” Bagiire said, underlining the government’s goal to maximize exports in both manufactured goods and services.
Harmonizing Education Policies
Another area of focus is education. Bagiire mentioned that Somali students in Ugandan universities often face inconsistencies in tuition fees, with some being charged as international students instead of benefiting from the East African Community (EAC) student fee structure. The JPC seeks to harmonize these policies to ensure fair treatment and strengthen people-to-people ties between the two countries.
Expanding Investment and Business Opportunities
In addition to trade, the Uganda-Somalia Investment and Business Forum, held alongside the JPC, provided an important platform for private sector engagement. Over 60 companies from both countries participated, exploring partnerships and showcasing their products. Bagiire urged the private sectors to capitalize on these opportunities, stressing that “every product manufactured here, every crop grown, has a market in Somalia.”
Leveraging Somalia’s Integration into the EAC
The cooperation between Uganda and Somalia, though long-standing, has gained momentum with Somalia’s recent admission into the East African Community (EAC). Bagiire emphasized that Somalia’s integration into the EAC is a game-changer, facilitating easier trade, movement, and investment across the region. Uganda sees this as an opportunity to position itself as a regional leader in Somalia’s reconstruction and economic integration.
Looking Ahead
Bagiire concluded by reiterating the importance of regional cooperation for the growth of both Uganda and Somalia. “The more we do these sorts of events, the more we open up opportunities for our people, and the stronger our partnership becomes,” he said. The JPC is central to Uganda’s regional economic diplomacy, ensuring that trade, security, education, and investment are prioritized for mutual growth.
Uganda’s push to strengthen its relationship with Somalia reflects a broader strategy of regional integration and trade-driven diplomacy, marking a new era of economic collaboration in East Africa.
