Absa, DHL announce partnership to help 800 Ugandan SMEs access export markets

DHL, a global leader in the logistics industry has announced a partnership with Absa Bank Uganda for this year's growing beyond borders entrepreneurial training programme.

The purpose of the programme is to empower Small and Medium Enterprises (SMEs) in Uganda by enhancing their understanding of the economic potential of international trade and its benefits.

“SMEs tend to focus predominantly on domestic markets, neglecting lucrative opportunities for international trade. This is often due to a lack of information, and limited abilities to invest in market research, logistics, compliance, and marketing. These challenges limit SME growth and therefore this programme will enable businesses to look into external markets for opportunities,” said Joseph Odole, the Country Manager, DHL Uganda.

The free-of-charge workshop model explores importing and exporting in new markets, guides 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.

“To drive economic growth, we are aware of the need to provide entrepreneurs with essential business development services to grow their businesses. Through this programme, we intend to bridge the gap that isolates SMEs from markets, opportunities and access to capital. This work is best done through partnerships and collaboration hence this partnership with DHL,” said Musa Jallow, the Retail and Business Banking Director, Absa Bank Uganda.

An initial pilot programme run by DHL attracted participation from 30 SMEs across sectors including agriculture, artisan, beauty and cosmetics, fashion and interior design. Of these, a good number were able to pursue opportunities for cross-border trade with some earning average revenues between USD5,000 to USD18,000.

The programme is now being scaled up by Absa to reach 800 SMEs.

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, and 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 technology advancement, cross-border e-commerce is the fastest-growing segment of international trade. Small businesses can be global utilizing growing available

inexpensive digital tools that allow them to source, ship, deliver, pay and collect various aspects of their operations. Through this programme, we intend to support SMEs to develop

products meant for export and establish linkages to global businesses,”  Odole added.

Banks play a key role in providing various financial services and instruments that facilitate the movement of goods, services, and capital across borders. These include providing essential financial services, managing risks, facilitating payments, and offering expertise on international trade.

“At Absa, we believe the opportunity to optimize opportunities for international trade has significant benefits. E-commerce is fast growing providing marketplaces, payment gateways

and online logistics which can reduce barriers to trade across borders. As a pan-African bank  with global reach, we are well poised to provide essential financial services for cross-border trade including managing risks, facilitating payments, and offering expertise on international trade. We have various financing options like working capital requirements, asset finance and trade instruments to support business financing needs,” Musa Jallow added.