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This paper aims to contribute to the understanding of the relationship between the different innovation capabilities and the international competitiveness of agro-processing firms in Uganda.

This study adopted a cross-sectional research design. Data were collected through a questionnaire survey of 125 firms exporting agro-processed products that are members of the Uganda Export Promotions Board (UEPB). Data was analyzed using the Statistical Package for Social Scientists (SPSS).

The study established that product innovation capabilities and organizational innovation capabilities are positively related to the international competitiveness of agro-processing firms in Uganda while process innovation capabilities and marketing innovation capabilities are not.

A structured questionnaire was used to solicit responses and no follow-up interviews were conducted to inform the reasons behind the respondents’ responses. Nevertheless, the study reveals that agro-processing firms in Uganda should concentrate on building product and organizational innovation capabilities if they are to compete effectively in international markets.

To the authors’ knowledge, this is the first study to investigate the relationship between the four forms of innovation capabilities (product, process, marketing and organizational) and international competitiveness particularly among agro-processing firms from an African country.

Preferential market access is a pillar of the enabling clause in international trade, and as such has received scholarly attention in the recent past. This study aims to empirically examine intensity and utilisation of Uganda’s preferential market access.

Secondary data at the six-digit level of the harmonised system was sourced from the International Trade Centre’s and UN COMTRADE’s Trade Map database on trade flows to compute; trade intensity indices, Balsa’s revealed comparative advantage (RCA) indices and the existing potential trade. The time period was 2013–2022.

It is evident that Uganda is not taking full advantage of its preferential market access. The findings of the trade intensity analysis revealed that the strength of trade relations between Uganda and its preferential markets has been consistently weak in the period 2013–2022, while the intensity of trade relations with its FTA partners has been strong. The RCA results revealed that all Uganda’s agricultural exports to its preferential markets have a comparative advantage, with exports of roses reporting an exceptionally high RCA relative to other agricultural exports. The RCA results also show that the comparative advantage of Uganda’s coffee exports recovered after a significant fall in the period 2014–2022. The analysis of the existing potential for trade reveals a disproportionally low market share held by Uganda across all product lines, notably, only 2.3% of the US$29bn coffee imports in its preferential markets.

One limitation of this study is that it primarily relied on quantitative data from the International Trade Centre and thus lacks an exhaustive understanding of the circumstances at the export firm level. Qualitative data, such as interviews with exporters and policymakers, could provide deeper insights into the specific challenges and opportunities faced by Ugandan businesses in these markets.

This paper highlights the need for additional trade facilitation measures to address preferential market access bottlenecks such as stringent rules of origin and call for an aggressive government intervention in enhancing the export readiness of SMEs in Uganda. In addition, the paper is informative to Uganda’s exporters regarding the existing and potential increase in their exports to international markets.

The strength of Uganda’s trade relations with its preferential markets is empirically examined in this paper and provides useful insights for enhancing utilisation of preferential market access by beneficiary countries.