Uganda's flower exports grow

The flower sector injects $20m into the Ugandan economy annually, according to a recently released report by Makerere University researchers. "The sector puts an estimated $20m per year back into the economy through the payment of wages, transport fees, inputs and packaging," said the report.

The study was conducted on trade between Uganda and Europe in the coffee, fish, floriculture, horticulture and tourism sub-sectors. It also looked at the business relationship between local firms and their foreign buyers, and the strategies of local firms to upgrade these arrangements. It said 60% of the flowers are sold through the Dutch Auction houses and 40% is through direct sales.

Export revenue from flowers was more than $30m in 2005. The growers aim at export earnings of at least $80m by 2010, according to the floriculture competitiveness strategy for 2005-2010. Half of the growth is expected to come from new investments, 30% from expansion into new areas and products, and 20% from productivity improvements with new technology. This is expected to increase direct jobs in the industry to 15,000. The industry currently employs 6,000 people, 60% of whom are women.

The report says the sector, now one of the largest export earners, transformed from infancy in the mid-1990s to a competitive export business of 7,520 metric tonnes of flowers in 2005. It has a growth rate of 14% and the total investment is estimated at $60m. This has made Uganda the sixth largest African exporter of cut flowers after Kenya, Zimbabwe, South Africa, Ethiopia and Tanzania.

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