Opportunities And Challenges Faced By Ugandan Exporters To China

Starting from a small base, Uganda’s exports to China has registered increase in growth rates equal to or greater than that of other countries in East African Community. This expansion is due to significant increases in demand, favorable trade terms by the Chinese government, and increase production as a result of improved technology. This study was carried out to investigate the opportunities and challenges faced by Ugandan exporters. The objectives of the study were to:examine the demographic characteristics of the Exporters, the goods which they export, the opportunities available and the challenges faced by the Uganda exporters. A qualitative cross sectional research design was adopted to undertake the study. A field study using simple random sampling was used on a sample size of377traders to China Data were analyzed using Statistical package for social science (SPSS). The study found that Uganda’s exporters to China are predominantly male, are between20and59years of age, are educated beyond primary school level and have exported to China for more than1year. The goods that are exported to China by Ugandan traders are; coffee, cotton, leather, oil seeds, timber, minerals, textile and garments, art and crafts, Matooke, fruits, flowers, fish and fish products and animal and animal products. The opportunities available to Ugandan exporters to China are:ease of obtaining a visa to China, existence of a preferential tariff plan for the Ugandan exporters, cordial relationship between Uganda and China, market size, favorable exchange rate, favorable business environment in China, political stability, favorable government policies, high return on investment, cheap labor available in China and honesty of the Chinese people. The study found that the challenges faced by Ugandan exporters to China were language barrier, strict regulatory controls, high transport costs, stiff competition from Chinese products, stiff competition from exporters from other countries, difficulty in obtaining trading licenses, difficulty in obtaining product approval, lack of consumer awareness and understanding about products, strict rules and regulations in China, human rights abuses and discrimination. The study concluded that the balance of trade between the two countries is still tilted in favor of China. The study recommended that in order to increase opportunities for Ugandan traders, the Chinese government should consider teaching of the Chinese language in Ugandan schools, add value to their products and create consumer awareness and understanding about Ugandan products in international med...