By Daniel Karibwije
The beginning of the year brings new opportunities. A fresh year is hear and with the fanfare and Christmas spending dimming away, we need to get back to productive tasks and activities.
The December -January consumer spending is now in decline mode and 'back-to-reality' has set in.
Small and medium-sized enterprises (SMEs) need to plan and forecast for this year.
Two key challenges that SMEs in Uganda and the rest of the world battle with are: How to meet technical requirements in international markets and overcome technical barriers to trade, the most frequent obstacles to it.
SMEs need to research on the requirements of the product they have specialised in. Is it beef exports? Exports of dairy products or fish?
Products have different requirements and standards depending on the market you are targeting. Do not assume that the requirements to export cocoa in the EU are similar to the US. Do not fear or tire of asking questions and seeking answers, rather than losing money in fines or damages.
INFORMATION IS KING
According to the International Trade Centre (ITC), SMEs need to seek information, conform to requirements and demonstrate compliance in a cost-effective manner.
They have to research more about the product standards by visiting the Uganda National Bureau of Standards website as a starting point. Thereafter, a physical visit with a sample is recommended. The centre that checks for coffee quality is the Uganda Coffee Development Authority quality office at the Uganda Manufacturer’s Association (UMA) in Lugogo, Kampala.
Join a joint WhatsApp group on coffee or fish or whichever product you are focused on this year. There is always new knowledge out there that will land on the prepared mind.
Those who seek knowledge will find it.
TECHNICAL REQUIREMENTS
In developing countries, such as Uganda, technical requirements might change and not reach SMEs in time compared to big players on the market.
Registering membership with trade support institutions both private and public sector is key. The packaging standards for a product can change and companies will need to adjust production systems and costs to match new market requirements.
Whereas in Uganda we are comfortable with plastic packaging, some markets will insist on glass packaging for certain food products. Without a plan, this will definitely increase the cost of production for a company exporting to this market.
With countries adopting eco-friendly supply chains and increased consumer consciousness, plastics are being slowly phased out for certain food packaging. Biodegradable and earth-friendly packaging is marketable.
CAPACITY BUILDING, ADVISORY
Be on the lookout for training opportunities in your area of interest. There are a number of trainings available in the market today and skilling is top on the agenda for institutions, such as the Private Sector Foundation Uganda (PSFU), with funding available on a co-sharing basis.
Private companies should take advantage of such opportunities that also allow them to source trainers abroad and fund their trip to conduct a training in Uganda to a group of producers and manufacturers.
PARTNERSHIPS AND NETWORKS
Join and register membership with a variety of trade support institutions, such as PSFU, UMA and business support organisations. Let those emails keep coming in from a variety of sources. Knowledge is power, do not be left behind this year. By signing up for membership, you keep receiving industry-related information to your inbox, some of which might be life-saving for your company.
Partnerships and networks open market opportunities when you least expect, building the company-profile and credibility.
I wish you a happy 2022 full of export success and open doors of opportunity.
The Writer is an export trade specialist
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