As tensions escalate in the Middle East, Uganda’s exporters are being urged to stay calm—but not passive.
A fresh advisory from the Presidential Advisory Committee on Exports and Industrial Development (PACEID) warns that the deepening conflict involving Iran, Israel, and the United States is already rippling through global trade, disrupting shipping routes, driving up energy prices, and raising the cost of doing business far beyond the region.
For Uganda, the stakes are unusually high. The Gulf region accounts for between 35 and 37 percent of the country’s exports, including coffee, gold, tea, fruits, and vegetables. It is also a major source of investment and critical imports such as petroleum. That level of exposure means that disruptions thousands of miles away are now being felt much closer to home.
PACEID’s message to exporters is simple: collaboration is no longer optional. Businesses are being encouraged to work together, closely monitor stock levels, and maintain steady supply chains to protect Uganda’s reputation in international markets. The concern is not just about immediate losses, but about preserving long-term trust with buyers during a period of uncertainty.
The disruptions themselves are becoming harder to ignore. Key maritime routes such as the Strait of Hormuz and the Bab el-Mandeb Strait—vital arteries for global trade—are under strain. Some shipping lines have begun suspending or rerouting vessels, forcing cargo to take longer, more expensive routes around southern Africa.
That shift is already driving up costs. Freight charges have risen sharply, with increases of up to $1,800 for a 20-foot container and more than $3,800 for a 40-foot container. Transit times are stretching by as much as 20 days, creating additional pressure for businesses dealing in perishable goods.
Air freight is also feeling the squeeze. Capacity constraints and delays among major carriers have forced exporters to plan further ahead, sometimes confirming shipments days in advance or seeking alternative routes.
PACEID likens the situation to a smooth highway suddenly narrowing into a rough, congested road—a jarring transition that businesses must navigate without stopping. For exporters carrying fragile or time-sensitive goods, the risks are immediate and costly.
Beyond the short-term disruptions, the advisory points to a broader lesson. Africa, it argues, cannot afford to remain overly dependent on external markets, especially in times of global instability. Strengthening intra-African trade, not as a fallback but as a primary strategy, is increasingly seen as essential.
For now, however, the focus remains on weathering the storm. Exporters are being urged to plan for higher costs, tighten coordination with logistics partners, and stay in close contact with financial institutions to avoid unexpected shocks.
In a global economy where conflict can quickly disrupt supply chains, Uganda’s challenge is no longer just to grow its exports—but to keep them moving.