KAMPALA, Uganda – Senior presidential advisor Odrek Rwabwogo has warned that Uganda and the wider African continent risk losing out economically if they fail to counter foreign-backed companies with stronger local financing and value addition strategies.
In a video message shared on social media, Rwabwogo said foreign firms are increasingly dominating African markets due to access to cheap, state-supported financing and long-term industrial planning—advantages many local businesses lack.
“Uganda cannot compete in a world where other countries send their companies into Africa backed by cheap money, strategic planning, and long-term industrial support,” he said.
He pointed to global initiatives such as China’s Belt and Road Initiative and the European Union’s Global Gateway, which provide low-cost funding to companies expanding into Africa. According to Rwabwogo, the absence of similar financing mechanisms for African entrepreneurs leaves local firms at a disadvantage.
“Where is Africa’s export fund united around low-cost money for entrepreneurs?” he asked.
Rwabwogo, who also chairs the Presidential Advisory Committee on Exports and Industrial Development (PACEID), said Africa continues to lose value by exporting raw materials and importing finished goods at higher prices.
The continent holds an estimated 20 percent of the world’s mineral resources, including cobalt, lithium, copper and rare earth elements. However, most of these resources are exported in raw or semi-processed form, with refining and manufacturing largely done outside Africa.
He warned that this trend limits job creation, weakens industrial growth, and reduces potential earnings for African economies.
Rwabwogo instead called for a deliberate shift toward value addition—processing raw materials locally to increase export value, create jobs and build stronger domestic industries.
Uganda has made some progress in this direction, with investments in mineral development and gold refining, alongside broader government plans under Vision 2040 to expand the economy and industrial base. However, the country still relies heavily on raw exports and imports many finished products.
Rwabwogo said bridging this gap will require affordable local financing for businesses, stronger mentorship for entrepreneurs, and coordinated planning between government and the private sector.
He also emphasized the need for regional cooperation through frameworks such as the African Continental Free Trade Area (AfCFTA), which aims to expand intra-African trade and support industrial growth.
His remarks come at a time when global demand for critical minerals—driven by renewable energy, electric vehicles and technology—is rising, presenting what he described as a narrow window for Africa to benefit.
For Uganda, the push for industrialization is further tied to expectations around oil production and the need to diversify the economy while creating jobs for a growing population.
Rwabwogo urged policymakers and business leaders to act decisively, warning that without a clear strategy, Africa risks continuing a cycle of exporting raw materials while importing higher-value goods.
“The future is not tomorrow. The future is shaped today by our behavior,” he said.
