Uganda’s Food and Livestock Export Potential in the EAC Region1

Abstract

The food and livestock sub-sectors are crucial for food self-sufficiency and foreign exchange earnings in agrarian economies like Uganda. Using an augmented gravity model, the overall objective was to establish the determinants of Uganda’s export of food and livestock products and the potential for exporting these commodities to her trading partners. The findings reveal that trading partners’ GDP, importer’s population and regional trade agreements enhance the country’s export trade. Historical and cultural similarities of trading partners impact bilateral trade positively. Uganda has the potential to export food and livestock commodities to over 85 countries worldwide. In the EAC, Uganda has the potential to export food and livestock commodities to Tanzania. From a policy perspective, the results of this study suggest that the government should take advantage of the
identified export potential markets by increasing production to achieve an overall growth in trade. Agricultural support in the form of tradefacilitating infrastructure, value-addition, investment in export standards and augmented funding for the agricultural sector would increase domestic production and therefore enhance Uganda’s export of food and livestock products.