63 years of Steady Growth of trade, industry and cooperatives

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Since independence 63 years ago, Uganda has experienced growth in her exports currently valued at US$2.13 billion in May 2025. Uganda’s top exports included gold, coffee, cocoa beans, and petroleum products. Specifically, gold and gold compounds have been the leading exports as Khadija B. Nakakande the Ministry’s Senior Communications Officer says.

In the year ending May 2025, Uganda’s merchandise exports grew to US$2.13 billion. Key exports included gold, coffee, cocoa, and manufactured products like cement. This remarkable performance was driven by increased external demand and improved global commodity prices, especially for coffee, gold, and cocoa.

In 1962, at the time of its independence, Uganda’s major exports were coffee and cotton, which dominated the country’s agricultural export earnings, along with other products like tea, grain, and copper. Uganda was exporting 3.5m bags of coffee compared to the 7.93 million bags valued at US$ 2.25 billion by July 2025.

Uganda exported gold worth US$ 4.21 billion by the year ending June 2025, with volumes rising to approximately 49,085 kilograms.    

Exports Destinations

Uganda’s main export destination is the Middle East, with the United Arab Emirates (UAE) being the primary recipient within that region. A significant portion of Uganda’s exports, particularly gold, are directed towards the UAE. Other key export destinations include the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA), the European Union, and Asia. 

Promoting Exports through the Uganda Exports Promotion and Free Zones Authority (UFZEPA)

In order to position Ugandans for the regional and international markets, the NRM government working through the Uganda Free Zones and Export Promotion Authority (UFZEPA) to construct Agro Export Processing zones, Organize Trade missions, build relationships with key stakeholders to further increase the market for Ugandan goods.

UFZEPA acquired land through a lease from Uganda land Commission equivalent to 4,460.363 Hectares (44.6 square kilometers) in Kaweweta, Nakaseke for the development of a Public Free Zone on 4,460.363 Hectares (44.6 square kilometers) in Kaweweta, Nakeseke District. 

The Public Free Zone will be the largest in Eastern, Central and Southern Africa and is expected to attract over 2,110 domestic and foreign private enterprises, generate USD 2.11 billion in net export earnings annually and create over 211,000 direct jobs; 

Although Uganda has already secured markets such as those in the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA), the Ministry of Trade, Industry and Cooperatives (MTIC) is working towards acquiring additional markets with emphasis on the African continent through the African Continental Free Trade Area (AfCTA).

The AfCFTA aims to create a single market for goods and services across Africa, boosting intra-African trade. In 2018, Uganda ratified the (AfCFTA) agreement which positions the country to benefit from increased trade opportunities and economic integration within the continent. Government through MTIC and partners has developed the AfCFTA National Implementation Strategy for 2023/24 – 2032/33 which defines the strategic direction for Uganda’s trade sector. It sets the objectives, interventions, and targets to achieve Uganda’s aspirations within AfCFTA.

New Markets under AfCTA

Under the AfCFTA, which is composed of 1.3billion people and a GDP of $3.4 trillion, the government plans to export coffee, tea, dairy, fish, pharmaceuticals among others.

The above commodities are currently sold in Democratic Republic of Congo, Kenya, South Sudan, Algeria, Netherlands, Germany, the United Arab Emirates among others.

To leverage the opportunities under AfCFTA, Uganda is targeting specific markets on the African continent including Nigeria, Algeria, Egypt among others. In 2024, Uganda signed a commitment document with Nigeria which paved the way for Uganda’s exports to Nigeria including coffee, tea, milk, fish, and pharmaceuticals.

The African Continental Free Trade Area, is poised to help Uganda recover from trade deficits being experienced within the East African Community.Uganda expects more earnings from the AfCTA which has a total population of about1.3 billion people.

The COMESA-EAC-SADC Tripartite Free Trade Area (TFTA)

Uganda is also engaged in negotiations under the COMESA-EAC-SADC Tripartite Free Trade Area (TFTA) which aims to integrate the economies of Eastern and Southern African regions by reducing trade barriers and promoting free movement of goods and services.

The TFTA is a significant step towards greater economic integration in Africa, with the potential to boost trade, create jobs, and foster development. 

Operationalization of 8 One Stop Border Posts to facilitate cross border trade

Government through MTIC and partners has operationalized eight One Stop Border Posts (OSBPS) aimed at facilitating trade and free movement of goods in the region. These include 

Mutukula – Border post between Uganda and Tanzania, Malaba – Border post between Uganda and Kenya, Busia– Border post between Uganda and Kenya, Mirama Hills – Border post between Uganda and Rwanda, Katuna– Border post between Uganda and Rwanda, Elegu – Border post between Uganda and South Sudan, Mpondwe – Border post between Uganda and DRC, and Goli – Border post between Uganda and DRC.

Construction of Suam OSBPs bordering Kenya has been completed and yet to be operational.The OSBPs have helped to streamline border crossing procedures for both goods and people by consolidating border control functions into a single location. This reduces delays and inefficiencies associated with multiple checkpoints. 

In December 2022, H.E President Yoweri Kaguta Museveni commissioned the Mpondwe One Stop Border Post in Kasese District. 

Promoting Product Research and Innovations through UIRI

Government is also supporting the Uganda Industrial Research Institute (UIRI), to manufacture quality machinery needed for post-harvest handling, grain cleaning, destoners to clean seeds especially grains in addition to multipurpose Maize shellers threshing and grading machines among others.

He added that hands-on training will be conducted among the 150 SMEs and other University students to learn how to operate heavy equipment and also maintain them.

Progress in ensuring Quality and Standards of Ugandan Products

For every commodity to be accepted on the market, they must conform to both country and regional standards so as to compete with existing commodities from other countries.

The ministry has supported the Uganda National Bureau of Standards to develop standards and the number of standards has increased by 1% from 4812 in the financial year 2023/2024 to 4862 in the financial year 2024/2025.

He added that 70% have already been adopted from international standards which include ISO and CODEX, 14% being adoptions from regional standards from the East African Community and the African Organization for Standardization ARSO and 16% being indigenous Uganda standards. Government has also constructed the National Metrology Laboratories at the UNBS headquarters in Bweyogerere with funding from the African Development Bank through the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF).

Part of that funding has supported the development of 117 Ugandan standards that were approved by the National standards council. Of the 117, 25 are Food and Agriculture standards, 22 Engineering standards, 31 Chemicals and consumer products standards while 39 are Services and business standards among other interventions under the Ministry of Trade.

To further ensure that Ugandans meet the required standards so as not to miss out on the external markets, government has further empowered the Uganda National Bureau of Standards (UNBS) to verify 10000 industrial equipment, 12000 electricity meters, 1,600,000 weights and measures equipment; inspect: 9000 market outlets and 300,000 imports consignment entering Uganda.

Because of the support given so far, he said that UNBS has been tasked to construct an Engineering Laboratory for the improvement of the quality of products in the Construction Sector; conduct 5000 import inspections for all imported electrical appliances, 200 market surveillance inspections and 6000 market surveillance inspections to eliminate substandard agricultural products from the market.

They have also been tasked to train 2600 SMEs; MSMEs on standardization and value addition; test 150 samples of biofuels products and 30,000 product samples to check whether they conform to standards and are fit for purpose.

UNBS will also have to develop 100 standards for 50 agricultural commodities and 50 extractives industries in addition to issuing 6000 certification permits; calibrated 6000 measuring equipment; and 1000 industrial equipment in logistical centers.

Deployment of Trade Attaches

To increase the market of Uganda’s products, the Ministry continues to advocate for favorable trade relations through the deployment of Trade Attachés to key markets beginning with Tanzania, China and UAE. The attaches will be tasked with the promotion of goods made in Uganda to reduce the trade deficit, increase job creation through value addition to the nine priority Value Chains including Iron Ore, Copper among others.

The deployment of the trade attached is expected to take effect in the current financial year 2025/2026.

Once the above markets have been secured the ministry will have contributed towards the country’s Ten-Fold Growth Strategy which aims at growing Uganda’s GDP from $50 billion to $ 500 billion by 2040. And also, goals of the 2021 to 2026 NRM manifesto, which among others wants to reduce imports, increase markets for goods made in Uganda, add value to locally produced goods so as to create jobs, and create wealth for Ugandans.

Value addition and Industrialization

Uganda is committed to industrial transformation as the engine for economic growth, job creation, and wealth for all Ugandans. The Ministry of Trade, Industry and Cooperatives is strategically leveraging the country’s resources and partnerships to achieve this vision, guided by the National Industrial Policy and the National Development Plan.

Implementation of the National Industrial Policy (2020)

MTIC is implementing the National Industrial Policy (2020) with the aim of addressing critical human and societal needs, including access to food, clothing, shelter, health, physical infrastructure, defence, mobility and education, through availability employment opportunities and domestic production of value-added goods.

‘Through processing and manufacturing, Uganda targets to reduce the exports of raw materials like those in agriculture and minerals, which when exported deny Ugandans employment, raw materials that can be made into other useful items but also increase the cost of goods that would have been cheaper when processed within Uganda.

Implementation of the National Industrial Policy (2020) has so far led to the following achievements as of 2024;

Over 9500 manufacturing establishments in Uganda

4% annual industry growth rate

25.8% industrial sector contribution to GDP 

7.1% share of labour force employed in the industrial sector 

15.7% manufacturing value added (MVA) as a proportion of GDP  

So far, over 9500 manufacturing industries have been established in Uganda representing a growth rate of 4% per year while contributing 25.8% to the country’s GDP. The development has also increased the creation of jobs by 7.1% in the industrial sector alone.

However, added that there is a need for resources for infrastructure development, technology transfer, skills development, and access to finance.

Prioritized industries for development are determined in consideration of their high impact on; Employment Creation, import substitution and exports Promotion

These industries thus include; Agro-based industries – Fruits, coffee, tea, cassava, textiles, grain, cane, dairy and leather, Extractive-based industries – Steel, plastics, synthetics, petrochemicals, cement, salt and fertilisers, knowledge-intensive industries – automobiles, pharmaceuticals, electricals and electronics 

Support to Micro, Small and Medium Enterprises (MSMEs)

Since the enactment of the MSME Policy in 2016, the ministry of Trade, Industry and Cooperatives has spearheaded transformative programs to strengthen Uganda’s MSME sector with a focus on policy frameworks, capacity-building, and partnerships that have enhanced productivity, compliance, and market access for over 30,000 MSMEs.  The Ministry has finalized the MSME Policy and Strategic Plan to guide sector growth, emphasizing formalization, innovation, and access to finance. In addition, a sector-specific strategy has been developed to boost competitiveness in the cosmetics industry. 

Capacity Building and Training for MSMEs

• Training Materials Development: Created standardized manuals for financial management, record-keeping, and business plan preparation. 
• SME Training Programs: Trained 4,669 MSMEs in financial literacy, bookkeeping, and business planning. 
• Street Vendor Rehabilitation: Partnered with MTAC to train 480 former street vendors in hairdressing, cosmetology, shoe-making, tailoring, and bakery. Supported their transition to formalized businesses (URSB, URA, NSSF compliance). 

Support in the area of Quality Assurance and Certification

• Supported over 1,000 Uganda Inter-Cottage Industries members in meeting UNBS standards; 40 products certified.
• Published guidelines for Good Manufacturing and Hygiene Practices to improve product quality. 
• Conducted outreach to 4,300 MSMEs on the benefits of certification. 

 The ministry analyzed data on 30,000 MSMEsin collaboration with District Commercial Officers to inform targeted interventions, supported the creation of sector-specific standards to align MSMEs with national and international benchmarks.  

Export Readiness and Funding Mobilization

The Ministry prepared over 150 women-led enterprises for regional and global markets and developed proposals to attract funding for MSME programs. 480 street vendors and 30% of informal MSMEs transitioned to formal operations and 40 certified products unlocked access to premium markets.  Over 500 jobs created through vocational training and sector-specific strategies.  

1. Cooperatives Development

Since 2021, MTIC has ensured a sustainable Cooperative sector by providing an enabling environment for cooperatives to thrive.

FORMS/STRUCTURAL ORGANISATION OF COOPERATIVES

Four-tier structure:

1.  Primary societies
2.  Secondary Societies
3.  Tertiary Societies
4.  The Apex (UCA)

Cooperatives Societies Amendment Act Cap 107

In 2022, Government through MTIC amended the Act to strengthen the cooperative sector by modernizing its legal framework. The amendments in the Act are aimed at improving governance, transparency, and operational efficiency within cooperatives, addressing existing gaps and promoting better regulatory oversight.

This amended law empowers cooperatives to contribute more effectively to national economic development, particularly in poverty reduction and rural development. It ensures that cooperatives remain a key driver of economic resilience, social equity, and inclusive growth.

Current Developments

1. MTIC is currently reviewing of the Cooperative Policy to further strengthen the cooperative movement.
2. Review of the Cooperative regulations to be aligned with the amended Act 2020/2022 is ongoing
3. MTIC is currently in the process of rolling out the Cooperative Registration Information Management System
4. MTIC continues to monitor and supervise PDM SACCOs.
5. Sensitization about Beneficial Ownership to the Commercial Officers.