Ugandan medium- and small-sixed enterprises (SMEs) have been urged to embark on quality standards and enough production to get into the African Continent Free Trade Area (AFCFTA).
Entrepreneurs stand to gain by adhering to standard, it improves the quality of products and services which, in turn, facilitates market access not only in the East African Region but also on the continent
However, according to stakeholders, the weak and inadequate capacity to meet standards set by importing countries undermines the Uganda's trade performance.
Prof Charles Kwesiga, executive director of Uganda Industrial Research Institute, said there is a need to maintain standards and production for Ugandan SMEs to compete in the AFCFTA market.
"Standards have been a barrier to AFCFTA market, it's important for SMEs to know and maintain them as well as embarking on production to get into the AFCFTA market," Kwesiga said.
He made the remarks during the national capacity building workshop for SMEs and youth entrepreneurs on export readiness under AFCFTA focusing on standards .
"Three things should be done as well," Kwesiga said. "Firstly, enhancing technology use, secondly, affordable finance mechanism, and thirdly, human capital."
Uganda entrepreneurs needs to do more to fully benefit from the AfCFTA because this agreement is more complex and sophisticated compared to past trade agreements.
To start with, Uganda must concentrate on building a more comprehensive trade policy strategy that focuses on improving the quantity and quality of the existing exports and taking advantage of the new markets.
Emmanuel Twine, from the Ministry of Trade, said government has drafted the AFCFTA national strategy.
He revealed that the President has approved the export development fund in Uganda Development Bank to facilitate all efforts to benefit from AFCFTA market.
John Bosco Kalisa, executive director of East African Business council (EABC), told the Nile Post they have embarked on creating awareness among the SMEs and youth entrepreneurs on Standards to enhance their competitiveness.
"Currently, our main focus is on standards because they are a tool to enhance competitiveness, if they are not properly crafted or understood by MSMEs, they can be a barrier to trade and Ugandans have been struggling," Kalisa said.
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"In Uganda, only 18 percent of SMEs can reach the regional standard, so we need to double the efforts in terms of creating more awareness about standards."
The government has a role to play in implementing policies and strategies that are conducive to the growth of SMEs through the provision of infrastructure, skills development, technology development and standards.
Quality standards are a key pillar in the competitiveness equation and must be packaged together with other interventions so as to have impact on market penetration and access
AfCFTA objectives and origin
The AfCFTA was approved by the 18th ordinary Session of Assembly of Heads of State and Government in Addis Ababa, Ethiopia, in January 2012.
The assembly adopted the decision to establish an African Continental Free Trade Area and the Action Plan for Boosting intra-African trade as a key initiatives whose implementation would promote socio-economic growth development.
The AfCFTA aims at accelerating intra-African trade and boosting Africa's trading position in the global market by strengthening Africa's common voice and policy space in global trade negotiations.
It contributes to the movement of capital and natural resources and facilitate investments building on the initiatives and developments being undertaken by the State Parties, among others.
