Local govt leaders tasked to drive Uganda's export growth

__________________

Local governments across Uganda have been urged to take a more proactive role in driving export growth and industrial development, as the Presidential Advisory Committee on Exports and Industrial Development (PACEID) intensifies its nationwide engagement campaign.

During a high-level meeting held on March 13, 2026, at Ibanda district headquarters, PACEID officials met district council members and technical officers to outline how decentralised leadership can accelerate Uganda’s export ambitions and stimulate local economic transformation.

The engagement focused on PACEID’s four strategic pillars: expanding export markets, strengthening standards and compliance, developing export infrastructure, and improving access to export financing. These, the committee says, are critical if Uganda is to compete effectively on the global stage.

PACEID chairman Odrek Rwabwogo underscored the importance of local governments as frontline actors in the country’s production ecosystem, noting that their proximity to farmers, cooperatives, and small-scale enterprises positions them uniquely to influence export outcomes.

During a high-level meeting held on March 13, 2026, at Ibanda district headquarters, PACEID officials met district council members and technical officers to outline how decentralised leadership can accelerate Uganda’s export ambitions. (Courtesy photo)

“Local governments are not just administrative units; they are economic engines,” Rwabwogo said. “They are closest to farmers, cooperatives, Small and Medium Enterprises (SMEs), and young entrepreneurs who form the backbone of Uganda’s production sector. When they actively support production and investment, they directly contribute to national export growth and job creation.”

He challenged district leaders to prioritise the identification of high-potential export products within their jurisdictions and support farmers to organise into cooperatives, which he said are essential for meeting large-scale international demand.

Rwabwogo also emphasised the urgent need for improved product standards and value addition, warning that Uganda risks being edged out of competitive markets if quality and packaging are not addressed.

“Without markets, production has no meaning. Uganda is not alone in the global marketplace. We must improve standards, add value, and package our goods properly to meet international requirements. Standards are not optional but are a must,” he said.

Market access push

PACEID markets director Brenda Katarikawe Opus highlighted ongoing efforts to open new markets for Ugandan products through targeted research, the deployment of trade representatives abroad, and the establishment of Uganda Connect trade hubs aimed at increasing product visibility internationally.

“We need to work collectively to meet large export orders,” she said. “When producers are organised and coordinated, the entire value chain benefits right from the farmers to exporters and ultimately, the country gains.”

Financing, often cited as a major barrier to export growth, was also addressed during the session. Allan Agaba, the chief operations officer at Uganda Exim Limited, outlined opportunities available through the government-backed export financing facility.

He explained that the fund offers affordable working capital to exporters at interest rates lower than those of commercial banks, enabling businesses to fulfil export orders and scale value-added production.

“This is an impact-driven fund designed to unlock the potential of Ugandan exporters,” Agaba said. “From registration to disbursement, the process can take about a month, making it a practical solution for businesses seeking timely financial support.”

Despite welcoming the initiative, local leaders raised concerns about persistent bottlenecks affecting production and export readiness in Ibanda district.

Led by district speaker Godwin Oulanya, council members pointed to weak cooperative structures, exploitation by middlemen, limited investment in value addition, particularly in the banana sector, and inadequate infrastructure such as milk cooling facilities.

They also called for the establishment of an industrial park in the district to streamline value chains and attract investment in agro-processing.

In response, PACEID officials acknowledged the challenges and reiterated the need for stronger collaboration between central and local governments to address systemic constraints.

Local industry potential

As part of the visit, the delegation toured several local enterprises to assess production capacity and identify opportunities for scaling up export-oriented activities.

At Kyakakabire Coffee Farm, owned by Dr Arinitwe George, the team observed a thriving operation spread across 110 acres, with approximately 5,500 coffee trees. The farm employs 35 full-time workers, mainly youth and women, and supports surrounding communities through the distribution of free seedlings.

PACEID Team with management and staff of New Kakinga Millers Enterprise Ltd in Ishongororo town council in Ibanda district. (Courtesy photo)

Rwabwogo encouraged coffee farmers in the area to adopt a more coordinated approach by establishing aggregation centres equipped with drying facilities, storage, packaging, and transport systems.

“Aggregation is critical if we are to compete globally,” he noted. “When farmers come together, they can meet volume requirements, maintain quality, and negotiate better prices.”

The delegation also visited New Kakinga Millers Enterprise Ltd in Ishongororo, a large-scale agro-processing facility owned by Lucky Edson. The company sources maize from approximately 15,000 farmers organised through 50 village agents and employs about 150 people across its operations.

With a processing capacity of up to 35 tonnes of maize every 24 hours, the enterprise represents a growing segment of Uganda’s agro-industrial base. However, like many processors, it faces challenges, including high utility costs and limited access to affordable capital.

Rwabwogo commended the company’s investment in storage and processing infrastructure, describing it as a model for value addition in rural districts.

“Agro-processing is central to Uganda’s export competitiveness,” he said. “We must move away from exporting raw materials and instead focus on finished and semi-processed goods that fetch higher value on international markets.”

He urged the company to leverage financing opportunities through Uganda Exim Limited to expand its operations and increase output for export markets.