Uganda Prioritizes Agro-Industrialisation with Shs 1.86 Trillion Investment
Uganda has intensified its efforts to transform agriculture into a competitive and export-driven sector by prioritizing agro-industrialisation in the financial years 2024/25 and 2025/26. In a bold move, the government has allocated Shs 1.86 trillion for agro-industrialisation in the 2025/26 fiscal year. Finance Minister Matia Kasaija announced that the funds will support investments in agricultural research, inputs such as fertiliser, irrigation infrastructure, extension services, agro-processing and value addition, post-harvest handling and storage, quality assurance, and market access.
During the 2024/25 financial year, the government focused on enhancing research, productivity, commercialisation, and value addition. Notable achievements included the development of superior animal genetics by the National Animal Genetic Resources Centre and Databank, distributed under the Parish Development Model. The National Agricultural Research Organization (NARO) completed an anti-tick vaccine manufacturing facility in Nakyesasa, Wakiso District, with a production capacity of over 20 million doses annually. NARO also introduced innovative agricultural technologies such as water-saving cultivation methods, drought-resistant crop varieties, and integrated pest and disease control systems. Research by NaCORI significantly boosted coffee production, productivity, and export earnings.
To increase agricultural production, Uganda expanded its irrigation capacity to 54.76 million cubic metres through investments in both small and large systems, including solar-powered irrigation. Seven large-scale irrigation schemes were completed in Kween, Kabarole, Oyam, Kasese, Lira, Butaleja, and Pakwach, while three more are under construction in Bukedea, Kween/Bulambuli, and the Budaka-Mbale-Butaleja corridor. Additionally, 145 solar-powered irrigation and water supply schemes were completed, with 157 more underway. The government also built 4,300 micro-scale irrigation facilities across 135 districts, benefiting smallholder farmers with less than 2.5 acres. Usake Dam in Kaabong and Ongunga Dam in Katakwi were completed for livestock, irrigation, and fish farming, alongside 5,251 small- and medium-scale irrigation schemes.
To support mechanisation, five zonal agricultural centres were established in Namalere, Buwama, Bunghokho, Agwata, and Sanga. The government distributed 260 four-wheeled tractors, 750 power tillers, and two dredging machines for weed control, and trained 2,150 youth and women in machinery operation and maintenance. A new interest-free credit facility worth Shs 175 billion was introduced for large-scale commercial farmers, accessible through Post Bank, Housing Finance Bank, and Pride Bank Limited, aimed at boosting food security and exports.
In terms of value addition and marketing, NARO set up an Aflasafe Facility in Namulonge to eliminate aflatoxin contamination in grains, with a capacity to clean five tons per hour. This initiative is expected to save Uganda USD 38 million annually in export rejections and improve public health. The government also constructed eleven agro-processing and storage facilities across various districts to enhance value addition and market access. These include rice, maize, coffee, and oil seed processing facilities in Bunyangabu, Kyenjojo, Ntoroko, Alebtong, Katakwi, Kumi, and Nakaseke.
Partnerships with the private sector are being strengthened through the Uganda Development Corporation (UDC), supporting investments in Soroti Fruit Factory, Budadiri Arabica Coffee, Mabale and Kayonza Tea Factories, Bukona Agro Processors, Atiak Sugar Factory, and Yumbe Fruit Factory. To expand international market access, Uganda launched its first exports of coffee and milk to Serbia and Algeria, respectively. The milk exports to Algeria alone have the potential to generate USD 500 million in earnings.
