Uganda looks closer to home
According to reports, Ugandan textile and apparel manufacturers have decided to look to new markets for their goods. Many producers who traditionally export to the US are now looking at East Africa and Comesa (common market for Eastern and Southern Africa) as alternative export markets.
While Uganda has access to the US market on a quota-free and duty-free basis under the Africa Growth Opportunity Act, the recession has taken such a toll on the US that it is no longer viable for many firms to ship goods there. With demand at extremely low levels and competition from other nations remaining high, domestic manufacturers believe it’s time to look closer to home.
Nevertheless, some textile firms claim orders have already fallen by more than 75% and are concerned there may be no way back for them following the economic downturn.
