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DHL, a global leader in logistics in collaboration with Absa Bank Uganda under the 2024 ‘Growing Beyond Borders’ entrepreneurial training programme have trained over 200 SME’s in Jinja to build their capacity to access export markets.
The overall objective of the program is to empower Small and Medium Enterprises (SMEs) in Uganda by enhancing their understanding of the economic potential of international trade and its benefits. The program is being rolled out countrywide across 7 cities including Jinja, Masaka, Mbale, Mbarara, Lira, Arua and Kampala.
The training workshops are free of charge, and explore importing and exporting in new markets, provide guidance on how to find key geographical opportunities for the business’ specific products and services, as well as how to identify different marketing avenues and ways to build long-term relationships with their target customers for long-term success.
Steven Kateihwaho, DHL Uganda Commercial Director said, some SMEs tend to focus predominantly on domestic markets, neglecting lucrative opportunities for international trade, which he attributed to lack of information, and limited abilities to invest in market research, logistics, compliance, and marketing and this limits SME growth hence the launch of the program to enable businesses look into external markets for opportunities.
“To drive economic growth, we are aware of the need to provide entrepreneurs with essential business development services to grow their businesses. Through this program, we intend to bridge the gap that isolates SME’s from markets, opportunities and access to capital. This work is best done through partnerships and collaboration hence this partnership with DHL,” said Musa Jallow, Retail and Business Banking Director, Absa Bank Uganda.
Uganda continues to face a trade imbalance challenge and Ugandan products meant for export markets often face challenges that limit competitiveness including low quality assurance, failure to meet international standards, high exportation costs, financing difficulties; thus, making goods less competitive in international markets.
Export participation rates for traditional small businesses (those that typically do not sell online) range between 2-28% in most countries. In contrast, 97% of internet-enabled small businesses export, according to the World Trade Organization.
“Thanks to technological advancement, cross-border e-commerce is the fastest-growing segment of international trade. Small businesses can be globally utilizing available inexpensive digital tools that allow them to source, ship, deliver, pay and collect various aspects of their operations,” Kateihwaho said.
Banks continue to play a pivotal role in providing various financial services and instruments that facilitate the movement of goods, services, and capital across borders. These essential financial services help in managing risks, facilitating payments, and offering expertise on international trade.
Jallow noted that optimizing opportunities for international trade has significant benefits.
“E-commerce is fast growing providing market places, payment gateways and online logistics which can reduce barriers to trade across borders. We have also developed tailor made financing solutions that meet the needs of SME’s and can be evidenced through unsecured loans of up to UGX 200 million, vehicle and asset financing of up to UGX 600 million. Other available options for financing include export financing, trade finance services such as letters of credit,” he concluded.