Masaka Uganda
In Greater Masaka, farmers and small business owners are learning how to add extra value to their products.
This new approach aims to help them sell their goods internationally and make more money.
In improving the quality of what they grow and produce, they can tap into new markets and boost their earnings.
According to Winfred Ssembatya, the Head of Corporate Banking- ABSA Bank, they are committed to improving skills and knowledge of small-scale farmers and Small and Medium Enterprises about the economic potential of international trade and its opportunities to attract the locals to enhance their export trade.
Ssembatya explains that the campaign under the theme: “Growing Beyond Borders”, has already engaged over 300 SMEs in Masaka and is equipping them with key entrepreneurship skills.
This initiative will soon expand to seven cities of Jinja, Mbale, Mbarara, Lira, Arua and Kampala.
“SMEs tend to focus predominantly on domestic markets, neglecting lucrative opportunities for international trade. This is often due to lack of information, and limited abilities to invest in market research, logistics, compliance, and marketing. These challenges limit SME growth and therefore this program will enable businesses to look into external markets for opportunities,” Steven Kateihwaho, Commercial Director, DHL Uganda said.
Derrick Ssekitto, the Masaka Branch Manager at Absa Bank, emphasised the importance of providing entrepreneurs with key business development services to drive economic growth.
He explained that the program aims to close the gap that keeps small-scale farmers and SMEs from accessing markets, opportunities, and capital.
To address this, ABSA is collaborating with partners such as DHL and Birungi and Barata Associates, tax justice advocates, to support and uplift SMEs.
“Uganda continues to face a trade imbalance challenge and Ugandan products meant for export markets often face challenges that limit competitiveness including low quality assurance, failure to meet international standards, high exportation costs, financing difficulties; thus, making goods less competitive in international markets,” he added.
Export participation rates for traditional small businesses, which usually do not sell online, range from 2-28% in many countries. In contrast, 97% of online small businesses engage in exporting, according to the World Trade Organisation.
Steven Kateihwaho, Commercial Director at DHL Uganda, highlighted that advancements in technology have driven the rapid growth of cross-border e-commerce.
He encouraged Ugandan entrepreneurs to embrace these innovations to expand their reach and tap into international markets.
Kateihwaho noted that small businesses can go global by using affordable digital tools that enable them to handle sourcing, shipping, delivery, payments, and collections online.
He added that leveraging these tools can help them achieve much higher returns compared to what they might earn in local markets.
“Through this program, we intend to support SMEs and farmers to develop products meant for export and establish linkages to global businesses which will help the SMEs grow into middles sized and later into big firms,” Kateihwaho added.
Charles Kevin Ssemambo, the Regional Manager at Absa Bank, highlighted the significant benefits of tapping into international trade opportunities.
He explained that e-commerce is a rapidly growing marketplace, and that payment gateways and online logistics can help reduce barriers to cross-border trade.
“We have developed tailor made financing solutions that meet the needs of SME’s and can be evidenced through unsecured loans of up to UGX200 million, vehicle and asset financing of up to UGX600 million, and we also help people do export financing, trade finance services such as letters of credit among other facilities or crafted to help the business grow,” he added.
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