Expo a boost to China-Uganda cooperation

Kampala is set to host the first China-Uganda Industrial Capacity Cooperation Exposition, scheduled to run from July 23 to 26.

The expo has been organized by the China Council for the Promotion of International Trade in collaboration with the China Africa Development Fund, the Uganda Investment Authority and the Uganda National Chamber of Commerce and Industry.

Although this is the first time such an expo will be held in Uganda, it will be the third in Africa after similar events held in Kenya and Ethiopia in November and December 2018, respectively.

About 43 enterprises from 12 provinces and cities in China are expected to participate in the expo, in an effort to explore investment opportunities in the East African country.

The exhibitors will be drawn from various sectors including infrastructure construction, machinery and equipment, agricultural processing products, automobiles, minerals and metals, as well as tourism and health.

Speaking at a press conference ahead of the expo, Zhao Xiufen, the economic and commercial counselor at the Chinese Embassy in Uganda, said in 2018 Uganda ranked third in Africa as a destination for Chinese foreign direct investment, with total volume hitting $270 million in 2018.

Zhao hoped the exhibitors will have in-depth exchanges, as well as expand contacts and explore opportunities for development and collaboration.

Mubaraka Nkutu, director of membership for the Uganda Manufacturers Association, said it's important to take advantage of present opportunities and tap into the technologies vital in boosting the country's economy.

Steven Kabagambe, acting secretary general of the Uganda National Chamber of Commerce and Industry, said Uganda is willing to partner with Chinese enterprises, as well as attract them to establish industries in the country.

“Through that, we can have skill development and be able to produce quality goods, because we will have gained technology,” he said.

Martin Muhangi, a representative for the executive director of the Uganda Investment Authority — a state agency charged with attracting and facilitation of investment — said the expo provides an opportunity for the government to showcase Uganda as a preferred investment destination.

China has been Uganda's major trading partner for quite some time, and is its second-largest source market. Uganda's imports from China increased from $622 million in 2013 to $886 million in 2016 according to the Uganda Ministry of Trade, Industry and Cooperatives.

On the other hand, Uganda's exports to China have reduced in recent years, from $66 million in 2014 to $27 million in 2016.

The ministry attributes the huge trade disparity to Uganda's exports that are mostly bulky, low-value raw materials with minimum value added, while it imports high-value products from China.

To address the trade imbalance, the country is working on enhancing export of value-added products, as well as exploring opportunities for increasing export of services.

It's also encouraging Chinese businesses in the country to explore value addition of the many local resources and exports to China. It's also working on attracting Chinese investors with a key focus on export-oriented investments.

Some investment opportunities in the country include commercial agriculture and agro-processing, tourism, oil and gas, mineral extraction, infrastructure development — especially roads, energy and ICT — construction and operation of warehouses and silos, as well as the packaging subsector.

Major commodities imported from China are reception apparatuses, vehicles, telecommunications equipment, iron, steel products, beverages, spirits and vinegar.

Uganda's main exports to China include sesame, coffee, hides and skins, fish and crustaceans, cereals, cocoa cotton, oil seeds, fruits and vegetables.