A landmark development for intra-African trade, Nigeria is set to receive its inaugural shipment of goods from Uganda under the African Continental Free Trade Area (AfCFTA) agreement. Scheduled for the first quarter of 2025, this pilot consignment marks a significant step toward strengthening economic ties between East and West Africa.
The forthcoming shipment from Uganda will comprise a diverse array of products, including: Coffee, Black and green tea, Milk, Fish, Pharmaceuticals. This initial consignment aims to assess market demand and consumer preferences in Nigeria, laying the groundwork for future trade expansion between the two nations.
Ugandan President Yoweri Museveni, who witnessed the signing of the trade agreement in December 2024, emphasized the transformative potential of regional trade. He stated, “I am pleased to kick off the journey for the first formal exports of Ugandan products to West Africa under AfCFTA. As Africa awakens to its economic potential, it becomes evident that domestic markets alone are not sufficient. Expanding trade across the continent is essential for sustainable growth.
President Museveni also commended Nigerian President Bola Tinubu for supporting the initiative and facilitating the entry of Ugandan products into the Nigerian market. He urged African nations to strengthen commercial ties and harness the continent’s vast economic potential by leveraging the AfCFTA framework.
To support this trade endeavor, Uganda has implemented several strategic initiatives: AfCFTA Implementation Strategy: Launched to align Uganda’s trade policies with AfCFTA protocols, ensuring seamless integration into the continental free trade area.
Free Zones Export Facility at Entebbe International Airport: Inaugurated to enhance Uganda’s export capabilities by providing a dedicated space for processing and packaging goods destined for international markets.
Uganda’s Minister of Trade, Industry, and Cooperatives, Francis Mwebesa, highlighted the role of free zones in attracting investment and creating jobs. He noted that establishing trade hubs, such as the Free Zones Export Facility at Entebbe International Airport, enhances Uganda’s ability to export value-added products, increasing competitiveness in African markets.
This initiative is poised to bolster economic cooperation between East and West Africa, providing Ugandan producers access to Nigeria’s expansive market—the largest in Africa by population and GDP. For Nigeria, the partnership offers an opportunity to diversify its import sources and strengthen food security by incorporating high-quality Ugandan agricultural products.
In 2022, Uganda’s exports to Nigeria were valued at approximately $4.61 million, while Nigeria’s exports to Uganda stood at $471,000. This pilot shipment is expected to significantly enhance bilateral trade volumes and encourage a more balanced trade relationship.
Beyond this initial shipment, Uganda plans to expand its exports to other AfCFTA member states by leveraging trade corridors and improving infrastructure. The success of this pilot initiative could serve as a model for other African nations aiming to capitalize on the AfCFTA framework to boost regional commerce and economic integration.
As Africa continues to embrace the AfCFTA’s vision of a unified continental market, the collaborative efforts between Uganda and Nigeria exemplify the potential for shared prosperity through enhanced intra-African trade.
