Nigeria set for first shipment from Uganda under AfCFTA

Uganda is set to send its first official shipment to Nigeria in the first quarter of 2025 under the aegis of the African Continental Free Trade Area (AfCFTA) agreement.

The consignment to Nigeria, which includes coffee, tea, milk, fish, and pharmaceuticals will test market demand and lay the groundwork for deeper trade relations between both nations.

Uganda, landlocked in East Africa, is Africa’s second-largest coffee producer, with coffee accounting for about 17 percent of the country’s exports, according to latest trade data.

The country also produces at least 80,000 tons of tea annually and its lakes and rivers provide a rich source of fish and fish products for export, with an estimated export volume of approximately 50,000 metric tons, valued at $50 million.

Yoweri Museveni, the president of Uganda, who witnessed the signing of the agreement in December 2024, considered the agreement a driver of economic transformation across the African region.

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“I am pleased to kick off the journey for the first formal exports of Ugandan products to West Africa under AfCFTA,” he said. “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.”

The move follows the appointment of Ani Bassey-Eyo as Uganda’s trade representative to Nigeria and the signing of commitment export orders.

The agreement was signed alongside the launch of Uganda’s AfCFTA Implementation Strategy and the Free Zones Export Facility at Entebbe International Airport.

Francis Mwebesa, minister of trade to Uganda, said free zones will attract investment and create jobs. Lynette Bagonza, the permanent secretary credited government and private sector collaboration for shaping Uganda’s trade strategy.

Bassey-Eyo said Uganda aims to expand to other AfCFTA member states, using trade corridors and infrastructure improvements. “This trade relationship will create jobs, boost foreign exchange, and support economic growth,” he said.

Museveni acknowledged Nigeria’s role in the deal and thanked President Bola Ahmed Tinubu for facilitating Uganda’s market entry.

In 2022, exports from Uganda to Nigeria was worth $4.61 million, while exports from Nigeria to Uganda amounted to $471 thousand according to The Observatory of Economic Complexity (OEC). Success with this shipment could further enhance Uganda and Nigeria’s trade relations and encourage trade balance.