[{"bbox": [96, 152, 1135, 312], "category": "Text", "text": "(outputs 2 and 3). The Action will help structuring the European private sector, providing direct services to companies and supporting the organisation of B2B and B2G activities (output 6). The Action will adopt a strong value chain and sector approach ensuring that market access and competitiveness are improved for specific value chains and sectors. This should also benefit exporters adapting to European quality and environmental standards, e.g., linked to new policies and directives being developed and implemented under the Circular Economy Action Plan (CEAP)."}, {"bbox": [96, 323, 1135, 511], "category": "Text", "text": "This Action contributes to the roll-out of the Global Gateway strategy (2021), in line with the “Trade Policy Review - An Open, Sustainable and Assertive Trade Policy” (2021) as well as “the power of trade partnerships: together for green and just economic growth” Communication (2022). The Action fits into the broader framework of the Sustainable Business for Uganda (SB4U) TEI. It complements a number of ongoing and upcoming initiatives funded by Team Europe, to form a substantial and relevant package in support of private sector development and increased trade and investment between the EU and Uganda. Complementing the SB4U 1.0 Action (AAP 2022), SB4U 2.0 focuses on the Trade pillar of the SB4U TEI."}, {"bbox": [96, 521, 1135, 842], "category": "Text", "text": "This additional contribution to the TEI will allow to step up even further the political and policy dialogue around trade, investment and job creation, both with key actors in Government and with European and Ugandan private sectors. Since 2020, the EU has taken a leading role in improving investment and trade flows and promoting a partnership of equals by bringing the private sector at the table along with the EU, Member States and key public actors. The Action allows to seize to the momentum created by the organisation of the 2nd Uganda – EU Business Forum in October 2022 and the organisation of several events under the umbrella of SB4U Platform. The Action will provide a powerful instrument to turn the spotlight on the vibrant trade and investment relations between the EU and Uganda. In addition, this action will prepare the ground for the implementation of the EU-EAC EPA, offering the EU more leverage to push for its ratification. Finally, the action allows to respond to the momentum created by the recent accession of DRC to the East African Community (EAC), the implementation of the African Continental Free Trade Area (AfCFTA) and the envisaged EU strategy for Great Lakes, as well as to make the link with a number of multi country initiatives in the pipeline (Strategic corridors for example)."}, {"bbox": [96, 853, 1135, 987], "category": "Text", "text": "In addition to contributing to SDGS 8, 5, 9, 10, 12, 16 and 17, the proposed Action intends to contribute to MIP Priority Area 2 (Promoting sustainable and inclusive growth and jobs). It will help to achieve the MIP expected results 2.1.a (increasing investments into critical economic sectors); 2.1.b (through an increase in the volume, value and quality of Uganda's exports); 2.1.c (increasing mobilization, equitable access and utilization of green economy finance); 2.3.a (through an increase in the number of decent and sustainable jobs created)."}, {"bbox": [85, 1027, 323, 1059], "category": "Section-header", "text": "# 2 RATIONALE"}, {"bbox": [85, 1092, 234, 1120], "category": "Section-header", "text": "## 2.1 Context"}, {"bbox": [96, 1139, 1135, 1431], "category": "Text", "text": "The European Union (EU) is among the top two sources of Foreign direct investment (FDI) for Uganda and, a top destination for its exports. In the long term, value of EU – Uganda total trade increased from EUR 819 million in 2012 to EUR 1 462 million in 2022 (+79%). However, over the past years, the share of the EU market in Uganda total trade has progressively decreased to around 10.5% in 2021, behind the markets of Middle East and COMESA. The EU remains Uganda second largest exporting market, particularly for agricultural products (81% of Uganda total exports to the EU, of which coffee counts more than 70%) and fisheries (16%). The main export destination countries are Italy, Germany, Belgium, and the Netherlands. However, despite growing EU demand of agricultural products and Uganda agriculture output, Uganda is only EU 110th trade exporting partner. Uganda exporting system of agricultural products, in particular, appear unable to improving the capacity to comply with EU standards that guarantee health, social and environmental protection (e.g. worrying increasing number of shipment interceptions due to SPS unsatisfactory measures)."}, {"bbox": [96, 1442, 1135, 1630], "category": "Text", "text": "In respect to imports, the EU-27 was a major source of manufactured products with a share of 9% of total imports. In the last three years, EU-27 and Uganda total trade in goods averaged EUR 925 million. According to the Uganda Investment Authority (UIA), in 2018, EU-27 FDIs stock in Uganda was worth EUR 1.7 billion (mostly in energy, IT, tourism, and construction). EU companies represent a key source of FDI in Uganda and constitute a critical group of all formal businesses in the country. However, they have relatively limited success in influencing sound policy measures, due to an underdeveloped network with local associations. EU companies have a convergence of interests with the Ugandan private sector in promoting an operating environment that is private sector friendly,"}, {"bbox": [1038, 1681, 1143, 1707], "category": "Page-footer", "text": "Page 4 of 31"}]