Ugandan Delegation Flies to Serbia to Reactivate Trade Agreement Signed in 1963

A Ugandan delegation, led by General Wilson Mbasu Mbadi, Minister of State for Trade, Industry, and Cooperatives, is in Serbia for the Joint Commission for Trade Cooperation session in the city of Niš.

This trade mission seeks to reactivate the trade agreement signed in 1963 between Uganda and Yugoslavia, as well as to actualize further agreements made by President Museveni and his Serbian counterpart, H.E. Aleksandar Vučić, last July, including a Bilateral Air Services Agreement.

The Joint Commission is built upon the Trade Agreement between the Government of the Socialist Federative Republic of Yugoslavia and the Government of Uganda, signed in Entebbe in September 1963.

As the successor of the former Yugoslavia, the Republic of Serbia continues to honor this agreement, which provides preferential tax treatment for Ugandan products.

Current Trade Landscape

The potential for revitalising this agreement is underscored by recent trade figures. In 2023, Uganda’s total exports to Serbia were approximately 18.5 billion UGX (about $5 million), primarily consisting of coffee, tea, and spices.

Conversely, Uganda imported around 11.1 billion UGX (about $3 million) worth of goods from Serbia, predominantly machinery and pharmaceuticals.

While these figures represent a modest trading relationship, they also highlight significant room for growth.

The Serbian economy has shown resilience, with a GDP growth rate of approximately 2.9% in 2023.

The country has a population of about 7 million, providing a steady consumer base for Ugandan goods.

In contrast, Uganda’s economy grew at around 5.1% in the same period, with a population exceeding 45 million. However, the domestic market faces challenges such as limited infrastructure and access to global markets.

The majority of Uganda’s exports to Serbia consist of agricultural products, particularly coffee (which accounts for about 90% of the total exports).

With global coffee demand rising, establishing a stronger foothold in Serbia could facilitate access to European markets.

The Serbian market primarily exports machinery, pharmaceuticals, and chemicals to Uganda.

The potential for Uganda to import higher-value goods from Serbia can help diversify its economy and reduce reliance on raw commodity exports.

According to data, If Uganda could increase its exports to Serbia by even 50%, this would translate to an additional 9.25 billion UGX (about $2.5 million) in revenue, boosting total exports to 27.75 billion UGX (about $7.5 million).

This increase would represent a 50% rise from the current figures, which could have significant economic implications.

Uganda’s import needs include technology and machinery that could enhance local production capabilities.

By increasing imports from Serbia, Uganda could access products that constitute approximately 1.5% of its total imports, suggesting room for growth, particularly in sectors like agriculture and manufacturing.

General Mbadi praised Serbian hospitality, noting, “Serbian people are hospitable and welcoming just like Ugandans. Helping us sell what we have here is crucial for achieving economic independence back home.”

The Ugandan delegation aims to increase export volumes, particularly of coffee. Plans are in place to establish a free zones hub at Entebbe for coffee processing, which would enhance Uganda’s ability to distribute its products through Serbia, strategically located in Central and Eastern Europe.

Odrek Rwabwogo, Chairman of the Presidential Advisory Committee on Exports and Industrial Development (PACEID), highlighted the agreement’s potential benefits not just for Uganda but for East Africa as a whole.

“Reviving the 1963 treaty is an economic breakthrough,” he noted, expressing optimism about the future of trade relations between Uganda and Serbia.

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Upon arrival, the Ugandan delegation was welcomed by Uganda’s Trade Representative in Serbia, Bratislav Stoiljkovic.

They visited the Uganda Connect Hub in Belgrade, a marketplace that promotes Ugandan products, reinforcing the cultural and economic ties between the two nations.

Additionally, a visit to the Museum of Yugoslavia provided insights into Serbia’s rich history and cultural heritage.

With the backdrop of these discussions and the potential for enhanced economic collaboration, both nations are poised to explore new avenues for trade and investment.

The revival of the trade agreement from 1963 marks a significant step toward establishing a robust economic partnership that could greatly benefit both Uganda and Serbia in the years to come.

“By leveraging Serbia’s market and strategic location, Uganda stands to gain access to a stable European market, diversify its export base, and acquire valuable goods that could bolster its economic growth.” Concluded Rwabwogo

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Publish date : 2024-10-24 22:50:00

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