No Access | 2024-04-12

Leveraging the AfCFTA Agreement for Uganda’s Export Growth: Challenges and Solutions.

Authors/Editors: Isaac M.B. Shinyekwa (PhD) ,  Aida Kibirige Nattabi ,  Justine Luwedde ,  Philemon Okillong ,  Sanday Amos (PhD) ,  Hildah Namuleme

Abstract:

This paper analyses avenues through which Uganda can benefit from the African Continental Free Trade Agreement (AfCFTA) for export growth by addressing the underlying challenges. Using mixed approaches and a Gravity flow model on panel data (2011-2020), we identify the key challenges that Uganda should address to harness the most out of the AfCFTA. Results suggest that logistics and transport infrastructure, such as ports, railways, waterways, and logistics services, for instance, warehouses, distribution centres, customs, etc., play a significant role in determining the level of exports. Population increases and GDP growth significantly influence Uganda’s exports. While longer distance between Uganda and her trading partners in Africa reduce trade flows. Developing the logistics industry nationally and continentally is imperative to boost intra-African trade. Africa should improve transport networks and connectivity to increase market access for Uganda and other State Parties. Other critical areas include strengthening the dispute resolution mechanisms and legal frameworks to reduce non-tariff barriers. State parties should use diplomatic solutions to conflicts, increase access to information, foster innovation, harmonise standards and strengthen national conformity assessment regimes to deepen intra-African trade.