{UAH} Realities of USA/Canada/Uganda Trade and Investment

USA/Canada/Uganda Trade and Investment Forum at the 26^th Annual Convention of the Ugandan North American Association

I would like to start by quoting some very stark statistics.

	UGANDA	KENYA
Population	34 million	44 million
Imports from USA in 2013	$125 million – up 25% from 2012	$651 million – up 15% from 2012
Exports to USA in 2013	$47 million – down 36% from 2012	$451 million – up 16% from 2012
Trade Imbalance	$78 million – up 19% from 2012	$259 million – up 12% from 2012

Expressed as simply as possible, the USA exports high priced high tech products (machinery, aircrafts and aircraft parts, pharmaceuticals, etc) to, and imports significantly lower priced low tech products (spices, coffee, tea, textiles, etc.) from both countries.  Considering that we live in a world literally governed by modern technology, I honestly don't see this trade imbalance changing significantly anytime soon.  However, that does not mean that we should throw up our hands and simply give up.  I believe that as Ugandans living in North America, we have a responsibility to do whatever we can to help improve this imbalance in any measure.

As it so happens, it is a stated desire of the US Government to also find ways to more equitably address this trade imbalance with Uganda.

A workable solution to this issue is not something that can be figured out and developed in a one-day forum or weekend by a small handful of people.  Actions aimed at increasing Uganda's exports to the USA and Canada need to carefully look at and address a multitude of factors including the following.

·         What does Uganda currently export to North America?

·         Why have these exports declined in recent years?

·         What does Uganda produce (generally and specifically) that can be exported to North America?

·         Is there a potential market for these products in North America?

·         Why is this export potential not being realized right now?

·         What steps need to be taken to realize this export potential?

·         Is there a clearly identifiable potential role for members of the Ugandan community in North America?

Let us not ask ourselves these questions from a simply academic perspective but give them serious consideration.  Let me also add just a few follow up questions.

·         What would it take to one day walk into say COSTCO or Whole Foods and see a shelf full of coffee or tea bags clearly marked "Product of Uganda?"  Coffee bags clearly labeled "Produce of Rwanda" are a regular feature at my local COSTCO.

·         What would it take to walk into say Pier One and see baskets, furniture or other decorative accessories clearly marked "Made in Uganda?"  Products such as these labeled "Made in Kenya" are a regular feature at my local Cost Plus.

·         What would it take to walk into say Macy's and see contemporary fashions and jewelry with the label "Made in Uganda?"  I recently saw a sweater labeled "Made in Swaziland" at a local Norstrom.

·         What would it take to walk into say Trader Joes and see food products labeled "Product of Uganda?"  Trader Joes sells processed food products from all over the world.

·         What would it take to actually see Uganda positively and proactively marketed in North America as a popular tourism destination?  I see South Africa advertised quite frequently on TV and Kenya is a pretty regular feature in popular travel magazines such as Conde Naste and others.  Indeed, Kenya has a very active consulate in Los Angeles that heavily markets Kenya's national airline and attractions.

I am sure there are a multitude of other products I have not mentioned, but essentially what would it take to raise the profile of Uganda and Ugandan products in North America?

 

I would like to note one other very important category of potential export trade to North America – an abundant, still relatively cheap and reasonably educated labor force.  Uganda has a veritable plethora of universities and other institutions of higher learning.  It is widely reported that there are insufficient jobs in Uganda to absorb all the people graduating from these institutions – many with very advanced degrees.  So what non-manufacturing professional services can be outsourced from North America to Uganda?  What is the potential for the outsourcing of engineering, accounting, tech management, website design, or any other professional services to Uganda?

President Obama has invited 49 African Presidents to Washington DC this coming August for a summit on US/Africa Trade.  As is to be expected, Uganda will be strongly represented.  The Ugandan community in North America also needs to be strongly represented at this summit and we need to go there with a serious purpose and agenda.  What role can we play in the development and advancement of trade and investment between the USA and Uganda?  More to the point, how can we benefit financially from these efforts?

This is a discussion we need to conduct in advance of, during and after the upcoming Trade and Investment Forum that will be held during the upcoming 26^th Annual Convention of the Ugandan North American Association in San Diego over the Labor Day weekend (www.unaa.org).

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Moses Wilson, PE, is a former president of the Ugandan North American Association and a strong advocate of increased export trade from Uganda to North America.