Uganda eyes $2 trillion halal market through AfCFTA opportunities

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The African Continental Free Trade Area (AfCFTA) is opening vast opportunities for intra-African trade, with one of the most promising prospects being the booming global halal market, valued at over $2 trillion.

This rapidly expanding sector is projected to continue growing through 2030, and Uganda is well-positioned to capitalise on this lucrative opportunity.

Global demand for halal products is rising, particularly in North America, Asia, and the Middle East, presenting Uganda with a chance to enhance its trade competitiveness and open new export avenues.

Ambassador Salim Kim Walusimbi, AfCFTA's trade advisor and standards certification expert, emphasised that halal products—those compliant with Islamic law—are in high demand worldwide, especially during significant periods like Ramadan.

By integrating the necessary halal standards into production processes, Ugandan producers can unlock vast opportunities and cater to the needs of global consumers.

“In Muslim culture, the month of Ramadan is a deeply spiritual time. During this period, Muslims fast, gather in a spiritual community, and share celebratory meals at night. This heightened spiritual indulgence creates a greater demand for halal products,” said Salim.

“For Ugandan producers to tap into this lucrative market, integrating halal standards into their production processes is essential. It’s not just a niche strategy but a crucial step in boosting economic development, expanding market access, and meeting the diverse needs of global consumers.”

Salim further advised that obtaining international halal certification is key to accessing these opportunities. Partnerships with globally recognised certification bodies are invaluable in this process.

For Ugandan producers, aligning with organisations such as the International Food and Nutrition Council of America (IFANCA) and adopting the Crescent-M certification—recognised in over 50 countries—could transform their approach to the expanding market.

This certification grants access to North American markets, home to nearly four million Muslims, as well as other major consuming regions in Asia. With the global halal market valued at over $3 trillion, Uganda has a real opportunity to become a key exporter in this sector.

By adopting halal standards, Ugandan businesses can broaden their market reach and establish themselves as competitive players on the global stage. With the right partnerships and certifications, the economy stands to benefit.

“When it comes to food, the diversity of halal offerings is remarkable. halal cuisine isn’t confined to Middle Eastern food; Muslim culinary traditions span the Middle East, North Africa, Asia, and parts of Europe. Ramadan provides the perfect opportunity to highlight culturally and spiritually meaningful foods,” Salim explained.

Certain Ugandan products have strong potential in the halal market, allowing the country to showcase its rich cultural heritage while also supporting the Muslim community by offering a wide range of certified goods, from food to cosmetics.

Francis Mwebesa, Uganda’s Minister of Trade, Cooperatives, and Industry, emphasised that the halal industry extends beyond halal-slaughtered meat to include food, lifestyle products, cosmetics, and services.

“The cattle corridor of Uganda presents an ideal opportunity for halal beef and poultry processing. This is particularly beneficial for the government, as agriculture is a key driver of the nation’s economy,” said Mwebesa. “Especially now that we are targeting value addition.”

Uganda Investment Authority (UIA) director general Robert Mukiiza highlighted that the country has over 20 industrial parks, attributing the growth of the manufacturing sector to peace, attractive investment incentives, and robust infrastructure.

“Our goal at the UIA is to create jobs, add value, and accelerate exports. This is the foundation on which we aim to achieve a GDP of $500 million by 2040. Currently, manufacturers are primarily focused on processing agricultural products like tea, tobacco, sugar, coffee, cotton, and beer, alongside cement, textiles, and steel. However, there is room to guide them into halal-compliant sectors, including dairy, poultry, and cosmetics,” Mukiiza said.

A market survey in Kampala provided insight into the current state of halal goods and services in Uganda. Sheikh Ali Mpindi of Kisasi explained that halal standards extend to beauty products such as lipsticks and makeup, which should not contain alcohol.

“For Muslim consumers, halal food and drinks must meet holistic standards to ensure they are safe, healthy, hygienic, and not harmful to the body. There is still limited information about halal products in the Ugandan market, and trusting their adherence to required standards can be challenging. Like elsewhere in the world, it is difficult for consumers to determine whether products have been processed in compliance with Islamic law (Sharia),” said Sheikh Mpindi.

He further explained that halal makeup may contain animal-derived ingredients such as beeswax, keratin, and lanolin (from sheep’s wool), which are permissible.

He urged cosmetics manufacturers to create products that are both halal and vegan, highlighting that the beauty industry is undergoing a transformation driven by Muslim ethical values.

“The beauty industry is destined for transformation, and Muslim beliefs are setting a new ethical standard for clean beauty. Every ingredient should come from the earth, packaging should be sustainable, and brands should focus on making the Muslim community feel valued and respected,” he added.

With continued efforts to integrate halal standards and educate both producers and consumers, Uganda has the potential to unlock significant growth in this expanding market. By doing so, the country can create new business opportunities while establishing itself as a key player in the global halal industry.

In Kampala, Café Javas is a popular spot for Muslims breaking their fast away from home, while many downtown consumers rely on personal trust, choosing butchers they know or those recommended by someone they trust.

Musa Senabulya, chairman of the Kampala Butcher Traders Association, explained the halal slaughter process:

“‘Halal’ refers to the Islamic method of slaughtering an animal or poultry (dhabiha). It involves cutting the jugular vein according to Islamic guidelines. The process ensures the animal’s life ends without unnecessary suffering, stress, and that the blood is drained from the carcass. It is the permitted way,” he said.

Sylvia Kirabo of the Uganda National Bureau of Standards (UNBS) noted that halal standards are designed to protect the interests of the Muslim community while complementing existing quality standards that businesses must adhere to in order to ensure products are safe and of acceptable quality.

“For us, implementing halal standards presents an opportunity for enterprises to carve out a niche within the supply chain—encompassing suppliers, manufacturers, and distributors—that caters to the needs of the Muslim community in Uganda and positions them for export to the rapidly growing global halal market. The entire logistics process for halal products must align with Sharia law. Logistics service providers must ensure that raw materials, packaging, storage, and transportation of finished products are properly managed to prevent contamination with non-halal items,” said Kirabo.