Uganda seeks $1.4b to transform key agricultural value chains

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OPINION

By Hon. Fred Kyakulaga Bwino

Uganda is one of Africa's fastest-growing economies, expanding at an average of 6.1% annually.

Agriculture is the backbone of our economy, contributing more than a quarter of our GDP and sustaining the livelihoods of millions of people.

With 6.9 million hectares of arable land, two reliable cropping seasons, and a young, skilled workforce, Uganda is one of the continent's most competitive investment destinations.

This is demonstrated by the $3b in foreign direct investment (FDI) the country attracted last year, signalling strong investor confidence.

At the recently concluded African Food Systems Forum in Dakar, Senegal, I presented the Uganda Legacy Programme. This initiative aims to transform five key agricultural value chains: beef, dairy, animal feeds (maize, yellow maize, and soybeans), and coffee.

Developed in partnership with AGRA, the programme is a public-private partnership (PPP) designed to mobilise capital, de-risk agricultural investments, and provide marketing grants and blended finance. It directly supports our national development frameworks, including Vision 2040 and the Parish Development Model, ensuring that economic growth is anchored in inclusive, community-driven transformation.

As a ministry, we have identified these five value chains as the pillars of Uganda’s agricultural transformation, with the potential to turn the country into a regional food hub. With the right investments, these sectors can unlock billions in export earnings, create jobs for our youth, and secure food supplies for a fast-growing continent.

Targeted Investment Opportunities

Beef: Uganda's per capita beef consumption is far below the regional average, yet demand is increasing across the East African Community (EAC) and COMESA markets. By investing in improved cattle breeds, modern abattoirs, cold chains, and vaccine production facilities, Uganda can become a regional supplier of affordable, high-quality beef.

Dairy: This is another underexploited frontier. While current exports are modest, Uganda has the capacity to grow production to over six billion litres annually. Investments in integrated dairy hubs, cold storage, and processing plants would allow Uganda to expand its footprint in the regional market, which is worth more than $1.3b.

Animal Feeds: Maize and soybeans are the backbone of the livestock and poultry industries. The region faces persistent shortages of quality feed, which hinders the growth of these sectors. Strategic investment in feed production, mechanisation, and processing will not only strengthen Uganda’s competitiveness but also boost food security across East Africa.

Coffee: Uganda is already Africa’s largest exporter of coffee, earning $2.2b in just 19 months, which accounts for 60% of Africa’s total coffee earnings.

However, the real opportunity lies in value addition. Investing in roasting, soluble coffee production, and branding would allow Uganda to multiply its returns tenfold while moving up the global coffee value chain.

Investment Mobilisation and Incentives

We have set a target to mobilise $1.4b in investments over the next five years under the Uganda Legacy Programme to unlock this transformation. The plan is to allocate:

• $400m for coffee to scale production and expand value addition.
• $300m for dairy to strengthen pasture development, processing hubs, and cold chain facilities.
• $500m for beef to expand cattle populations, modernise abattoirs, and establish feedlot systems.
• $100m each for maize and soybeans to boost mechanisation, input financing, and processing capacity, particularly for animal feeds.

This investment drive is designed to leverage Uganda’s comparative advantages, reduce risks for private investors, and position the country as a leading regional supplier of high-quality agricultural products.

Uganda offers one of the most attractive business environments in Africa. Investors benefit from a 10-year corporate tax holiday, exemption from import duties on agricultural inputs, and zero-rated VAT on essential items like seeds and machinery.

The Uganda Investment Authority (UIA) has also simplified procedures through a One-Stop Centre, which brings together 16 government agencies to ensure efficiency and ease of doing business.

Strategic Market Access

Beyond these incentives, Uganda provides strategic access to vast markets. Investors can tap into the East African Community (EAC), which connects them to 300 million consumers, and COMESA, which extends this to 600 million. Furthermore, the African Continental Free Trade Area (AfCFTA) opens up a continental market of 1.3 billion people with a combined GDP of $3.4 trillion.

The sectors we have selected represent Uganda's strongest comparative advantages and the clearest path to shared prosperity. The opportunities are compelling, the risks are mitigated, and the incentives are generous. What is needed now are investors willing to join Uganda in shaping the future of Africa’s food systems.

The writer is the Minister of State for Agriculture