Absa Uganda has partnered with DHL Uganda to empower Small and Medium Enterprises (SMEs) in Uganda by enhancing their understanding of the economic potential of international trade and its benefits.
According to Absa Bank, the initiative is part of the ‘Growing Beyond Borders’ Entrepreneurial Training Programme and complements their wider business capacity-building program launched last year with . The program will run countrywide and cover up to seven districts in 2024.
“To drive economic growth, it’s crucial to equip entrepreneurs with the tools to explore and seize overseas opportunities,” said Musa Jallow, Retail and Business Banking Director at Absa Bank Uganda.
Joseph Odole, Country Manager at DHL, highlighted the untapped potential: “Many SMEs concentrate only on local markets and miss out on the benefits of global trade. Our collaboration is set to change that narrative by helping them compete and thrive internationally.”
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.
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.
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.