Uganda recently joined the Fund for Export Development in Africa, known as FEDA. This investment organization belongs to the African Export-Import Bank. FEDA exists because Africa faces huge gaps in equity financing. The official joining happened Thursday when representatives signed papers at the Foreign Affairs Ministry in Kampala.
FEDA mainly gives money to companies that help trade between African countries. It also supports businesses that develop exports or make products within Africa. Ambassador Phillip Rukikaire signed the papers for Uganda. He mentioned that this partnership shows how Africans can solve their economic problems themselves. He called it just the beginning of working together toward shared goals.
Africa has many resources and connected markets yet trades less within itself than any other region worldwide. The continent also creates very little value from its raw materials. Take cocoa beans as an example—Africa grows 75% of the world supply but only keeps about 10% of the industry value. Only 21% gets processed into ground cocoa locally, and less than 1% becomes chocolate on African soil.
This pattern repeats across many products and industries, explaining why Africa makes just 1.4% of global manufactured goods. These numbers help us understand why poverty and unemployment remain high across the continent. African countries must build more industrial capacity to meet development goals and reduce these problems.
Experts say Africa needs $110 billion to fill the equity financing hole for trade, export development, and industrial growth. FEDA CEO Marlene Ngoyi praised Uganda for joining. She said this move shows a strong commitment to industrializing Africa, adding value to exports, and increasing trade between African nations.
By joining FEDA, Uganda gains access to important investment opportunities. The fund manages $1 billion. Ngoyi explained that they put this money into member countries to help private businesses and public-private partnerships. Their goal focuses on industrializing Africa, adding more value to exports, and making trade easier between African countries.
Odrek Rwabwogo from the Presidential Advisory Committee on Exports and Industrial Development talked about history. He said FEDA helps rebuild connections between African countries that broke during colonization starting back in 1498. He emphasized that trade creates bridges between people, but those bridges need support to work properly.
The East Africa Regional Director for Afreximbank, Kudakwashe Matereke, described how FEDA invests in businesses focused on trade between African countries. They also support export growth and add value to African products. He stated that Uganda's signing of these papers shows real interest in bringing FEDA activities to the country.
Matereke shared examples of FEDA's work elsewhere in Africa. They have funded special economic zones and industrial parks in several countries. He mentioned specific projects in Benin, Togo, and Kenya. In Chad, they created an industrial park for livestock processing - turning animals into beef and leather products for international markets instead of exporting live animals.
He emphasized that FEDA differs from typical lending. These investments come through private sector companies to process local raw materials. The goal centers on creating finished products rather than shipping unprocessed resources abroad. Photos from the signing ceremony showed officials from both organizations celebrating this new partnership.
FEDA mainly gives money to companies that help trade between African countries. It also supports businesses that develop exports or make products within Africa. Ambassador Phillip Rukikaire signed the papers for Uganda. He mentioned that this partnership shows how Africans can solve their economic problems themselves. He called it just the beginning of working together toward shared goals.
Africa has many resources and connected markets yet trades less within itself than any other region worldwide. The continent also creates very little value from its raw materials. Take cocoa beans as an example—Africa grows 75% of the world supply but only keeps about 10% of the industry value. Only 21% gets processed into ground cocoa locally, and less than 1% becomes chocolate on African soil.
This pattern repeats across many products and industries, explaining why Africa makes just 1.4% of global manufactured goods. These numbers help us understand why poverty and unemployment remain high across the continent. African countries must build more industrial capacity to meet development goals and reduce these problems.
Experts say Africa needs $110 billion to fill the equity financing hole for trade, export development, and industrial growth. FEDA CEO Marlene Ngoyi praised Uganda for joining. She said this move shows a strong commitment to industrializing Africa, adding value to exports, and increasing trade between African nations.
By joining FEDA, Uganda gains access to important investment opportunities. The fund manages $1 billion. Ngoyi explained that they put this money into member countries to help private businesses and public-private partnerships. Their goal focuses on industrializing Africa, adding more value to exports, and making trade easier between African countries.
Odrek Rwabwogo from the Presidential Advisory Committee on Exports and Industrial Development talked about history. He said FEDA helps rebuild connections between African countries that broke during colonization starting back in 1498. He emphasized that trade creates bridges between people, but those bridges need support to work properly.
The East Africa Regional Director for Afreximbank, Kudakwashe Matereke, described how FEDA invests in businesses focused on trade between African countries. They also support export growth and add value to African products. He stated that Uganda's signing of these papers shows real interest in bringing FEDA activities to the country.
Matereke shared examples of FEDA's work elsewhere in Africa. They have funded special economic zones and industrial parks in several countries. He mentioned specific projects in Benin, Togo, and Kenya. In Chad, they created an industrial park for livestock processing - turning animals into beef and leather products for international markets instead of exporting live animals.
He emphasized that FEDA differs from typical lending. These investments come through private sector companies to process local raw materials. The goal centers on creating finished products rather than shipping unprocessed resources abroad. Photos from the signing ceremony showed officials from both organizations celebrating this new partnership.
