DRC scramble: Uganda private sector sets sights on market

The entry of the Democratic Republic of Congo (DRC) into the East African Community (EAC) has set off a scramble among member states to tap into the opportunities presented by this highly sought-after market. One of the key players eyeing a slice of the DRC market is Uganda's private sector, represented by the Private Sector Foundation Uganda (PSFU). CNBC Africa recently sat down with Steven Asiimwe, the CEO of PSFU, to discuss the strategies and objectives of Ugandan businesses in tapping into the DRC market. As Asiimwe pointed out, trade relations between Congo and Uganda have historical roots that predate colonial borders. However, the formal inclusion of the DRC into the EAC now opens up new avenues for more organized and strategic trade partnerships. With the DRC historically relying on imports from beyond the continent, there is a significant opportunity for African nations, particularly Uganda, to step in as suppliers of products currently sourced from Europe, South America, and North America. One of the geographical advantages that Uganda holds in this regard is its proximity to the DRC, with areas like West Nile and Kisoro bordering the Congolese territories like Goma and Lubumbashi. This physical closeness allows for more direct and efficient business engagements between the two countries, creating opportunities for increased trade volumes and mutually beneficial partnerships. Despite the challenges posed by the distance to the capital city of Kinshasa, which hosts a large portion of the DRC's population, Ugandan businesses are exploring avenues to establish a presence in this key market. Through initiatives like the expansion of Uganda Airlines routes to Kinshasa and increased diplomatic and commercial engagements between the two countries, Uganda is paving the way for more robust trade interactions with the DRC. In terms of competitive advantage, PSFU members are leveraging their existing business ecosystem and the unique profile of Ugandan industries to differentiate themselves from competitors like Kenya and Rwanda. By focusing on tailored business propositions that align with the needs of the DRC market, Ugandan businesses aim to carve out a niche for themselves and establish strong footholds in this new economic landscape. As Uganda shifts its foreign affairs policy towards commercial diplomacy, the collaboration between the private sector and government entities like the Uganda Investment Authority is expected to yield positive outcomes in terms of market access and investment opportunities in the DRC. The ongoing fact-finding and matchmaking efforts spearheaded by PSFU signal a proactive approach towards capitalizing on the economic potential of the DRC market. With the DRC's entry into the EAC marking a significant turning point in regional trade dynamics, Uganda's private sector stands poised to harness the opportunities presented by this newfound partnership. As businesses in both countries embark on this journey of discovery and collaboration, the stage is set for a new chapter of economic synergy and growth in the East African region.