Business galore at trade fair as UMA pushes for better roads to boost trade

The recently-concluded annual Uganda Manufacturers Association (UMA) trade fair, which took place between October 2 and October 12, was a trendsetter for lifting crowding burden on all stakeholders.

With more than 150,000 showgoers turning out, one thing that stood out from the trade fair is new trend of digitization. There was no need for ticketing as they were bought online.

Another thing that stood out is that whereas in the past exhibitors used to manually demonstrate products, this time round, innovative ones used large TV screens to showcase their products. Of course, producers of fast-moving goods and consumables made a kill but it is the technology innovators that impressed the most.

Some of these outstanding exhibitors not only showcased businesses products, but they also help the communities and save the environment. One of the important innovations that stood out were prefab houses, which are metallic.

Metallic houses have always been there, mostly in form of uniports normally seen in police and army barracks, but now, those on display at the fair were improved versions that reduce heat. They are insulated and one does not need to use wood or bricks to construct a house.

These metallic structures are ideal for a farm. Then there was a group of young girls, who displayed beautiful crafts and sanitary pads made from banana fibers and whose proceeds went towards helping underprivileged girls in northern Uganda.

A few years ago, the trade fair introduced electricity-charged motorcycles and buses but this time, they went a notch higher to exhibit charging machines for the motorcycles.

Given the rate at which youth frequented the stalls of charging machines, one is left in no doubt that in a few years to come, the majority of Kampala boda bodas and tuk tuks may switch to electric motorcycles.

GOVT PLANS

At the official opening of the fair on October 8, Finance minister Matia Kasaija said it is very encouraging to see that manufacturing capacity is growing steadily. He emphasized that manufacturing is the largest sub-sector in the economy, sitting at the very heart of Uganda’s journey from a factor-driven to an innovation-driven economy.

Exhibitors are now 811, of which 689 are local and 122 international. It now presents the need for UMA to have a new home that can accommodate the expansion.

“It is exciting that innovation has set in well at UMA, with inventions that integrate the entire economy. The industrial sector’s contribution to Uganda’s economic recovery continues to improve,” he said.

CHALLENGES

Whereas the days of huge lines at the entrance are gone, there remains a few challenges for the organisers. From the observation, it is clear plastic pollution, especially in the form of mineral water bottles, remains a big challenge to organisers.

Much as there were people who collected them and placed them in dustbins, the mindsets of showgoers need to change. Another intriguing aspect from the exhibitors is that there were as many students out for a trip as they were people that genuinely turned out to buy products.

“Most of the visitors to our Honda car stall were students. It is good for them to learn about vehicles but from a business perspective, I wanted to receive more potential buyers of the brnad new machines,” said James Muwanguzi.

GOING FORWARD

According to Ezra Muhumuza, the chief executive officer of UMA, the future of the trade fair will be more about showcasing brands rather than showcasing products.

“Honestly, we no longer have space for products exhibitions. Exhibitors are now shifting to doing so on large screens. So, we are also moving to not only exhibit products, but the process of doing it and also exhibit the entrepreneur behind a specific product,” he says.

“The word has changed. We don’t no longer buy things because they are in the streets. We are better off buying things because we know who is producing them.”

TAPPING INTO REGIONAL MARKETS

The Uganda Manufacturers Association (UMA) has called for fast- tracking the construction of roads linking unexplored markets in the DR Congo and South Sudan. According to Muhumuza, manufacturers, in partnership with the ministry of Trade, are fast-tracking the construction of trade hubs at border points of both countries.

“The trade ministry has so far allocated land for establishing the trade hubs,” he says. He decried the poor state of roads in parts of the country, noting that they hinder the stimulation of trade.

“The roads, for instance, in Jinja city industrial area, are in a dire state, where government loses over Shs 30 billion in potential revenue as a result,” he said.

Meanwhile, Aga Sekalala Junior, the UMA chairman, says they are engaging government to achieve coherence and policy alignment. The constraints they seek to resolve include, but are not limited to, the fact that market access is limited.

“Regional East African Community (EAC) barriers impact nearly 30% of the traded goods; the lack of an export guarantee insurance for unstable neighboring markets where export losses have increased by 15% in the past year; and the cumbersome EAC Customs Management Act exemptions granted to special entities which end up in the same market,” he says.

He adds that with average lending rates above 18%, they must suggest tapping some long-term social security funds and reforming the capital markets to encourage local investment.

“Uganda needs to aggressively attract investments in primary industries to eradicate over $3 billion import bill on key manufacturing inputs such as steel, plastics, petroleum, and cereals, while missing out on value-added export opportunities,” he says.

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