By Staff Reporter
Accelerating trade and investment between South Africa and Uganda has become a key opportunity to translate the ideals of the African Continental Free Trade Area into tangible economic growth programmes
The second Uganda-South Africa Trade and Investment Summit, currently underway in Kampala, Uganda aims to accelerate interaction and dialogue between various entities in the two countries to create sustainable growth in trade and investment. South Africa’s Minister of Agriculture, Land Reform and Rural Development, Ms. Thoko Didiza, says that the focus of the summit is to drive Agroindustry ensuring that it reflects the significance of agriculture in the Ugandan economy, although not to the exclusion of other sectors.
Trade relations between the two countries have been growing until the recent slowdown as a result of COVID-19.
Speaking at the summit in Kampala, Minister Didiza said that “the shocks of global food value chains have seen rising costs on food and fibre as well as prices of fertiliser and agrochemicals. This situation has once again made us realise the importance of strengthening our food systems to ensure food security for our nations,” she said, adding that “at the same time the reality of climate change means we will need to think about innovative ways for producing under these conditions. Therefore, policies and regulatory environments need to factor these realities going forward.”
Though South Africa’s businesses are well entrenched and have established Forum for South African Business in Uganda (FOSABU) as an anchor to the South African business community in Uganda, Ugandan businesses have had a little success in penetrating the South African market because of the less than satisfactory quality of products exported from Uganda, inadequate phytosanitary standards and restrictions.
“I am however optimistic in the face of these challenges because as a Continent we have realised the opportunities we have in trading amongst each other. The formation of the African Continental Free Trade Area increases our market which boasts more than a billion citizens. This opportunity also challenges us to improve bilateral trade within a broad common market. In my view, strengthening our bilateral trade and investment creates a solid base for the AFCFTA,” said Minister Didiza.
“It is important for me to note that post the democratic dispensation in South Africa, our relations have grown in bilateral trade and investment, obviously strengthening the economic ties that will assist in the development of our societies. Interestingly, this is not the first time our engagements to boost trade and investment take place. At a political level, Ministers of different sectors have collaborated on many fronts including at multilateral institutions,” she said.
“South Africa is on a path to grow its agricultural sector as the path of the economic reconstruction. The agricultural sector still has a greater role to play in addressing key challenges of unemployment, poverty and low growth in our country. And in this process of rebuilding and expansion of the agricultural sector, we will strive to strengthen collaboration on key aspects with Uganda and many of our friends in the African continent. We look forward to a long fruitful friendship with Uganda,” she concludes.