Trading up: Harnessing the African Continental Free Trade Area (AfCFTA) for growth in Uganda
This policy brief considers the impact of the African Continental Free Trade Area (AfCFTA) on Uganda, emphasising the importance of trade facilitation reforms.
-
Edwards Policy Brief October 2024.pdf
PDF document • 180.64 KB
- In the absence of trade facilitation measures, the African Continental Free Trade Area (AfCFTA) has the potential to disadvantage Uganda, as exporters will experience a decline in East African Community (EAC) preference margins.
- Without trade facilitation reforms, it is estimated that liberalisation will reduce border revenues by around USD 17 million per year. Meanwhile, with such trade facilitation measures, border revenues would increase by USD 70 million per year.
- The trade facilitation provisions may be the most important component of the AfCFTA negotiations for Uganda’s trade – Uganda should push hard for these provisions to be as ambitious and as rapidly implemented as possible.
- While negotiations are ongoing, unilateral measures to reduce the cost of trade are advisable – including increasing investment in One-Stop Border Posts and the Uganda Electronic Single Window.