Agribusiness in Uganda is a vital part of the economy. It not only helps to feed the nation but also provides jobs to most Ugandans.
The country is blessed with fertile soils and a good climate that support a wide variety of crops and farming activities.
Agriculture, including agribusiness, contributes between 24% to 32% of Uganda’s Gross Domestic Product (GDP) and makes up about 35% of the country’s export earnings.
Key cash crops such as coffee, tea, cotton, and tobacco continue to play a central role, while newer products like vanilla, fruits, vegetables, cut flowers, and fish are gaining prominence.
The sector employs between 68% to 72% of Uganda’s working population, making it the biggest employer in the country.
Most of these people are smallholder farmers who grow crops on small plots of land using traditional tools and methods.
Many of them practice subsistence farming, growing just enough food to feed their families with little or no surplus for sale. Because of this, many smallholder farmers struggle to improve their incomes and grow their businesses.
Despite its importance, the agribusiness sector in Uganda faces several challenges. One of the major problems is the lack of business skills among farmers.
Many of them do not have the knowledge and training to manage agriculture as a business or to market their products profitably.
Infrastructure is another serious issue, especially in rural areas. Poor roads, limited storage facilities, and weak transportation networks make it difficult for farmers to access markets and reduce post-harvest losses.
Additionally, farmers continue to rely on traditional farming methods, which limits productivity. Many lack access to modern inputs such as improved seeds, fertilizers, and farming tools.
Access to credit is also limited, and high freight costs make it expensive to transport goods to markets.
Climate change is making things worse, with unpredictable weather patterns, drought, and soil erosion affecting crop yields and food security.
However, there are growing opportunities in Uganda’s agribusiness sector. One key area is value addition. More businesses are starting to process raw agricultural products to increase their market value.
For example, cassava can be processed into flour and starch, while coffee can be roasted and packaged for export.
These value-added products fetch higher prices and create jobs along the value chain. Another opportunity lies in the shift from subsistence farming to commercial agriculture.
Programs like the National Agricultural Advisory Services (NAADS) and the Markets for Agricultural Produce in the South (MAPS) project are working to help farmers see agriculture as a business and improve their productivity and incomes.
Innovation and technology are also driving progress in agribusiness. The use of improved seeds, smart farming tools, digital platforms, and commercial seed production is helping farmers increase yields and reduce losses.
These innovations are making it easier for farmers to connect with markets, access information, and manage their farms more efficiently.
The government is playing a supportive role by investing in agricultural development through better policies, infrastructure projects, and initiatives to attract both local and foreign investment into the sector.
Projects like the Resilient Efficient Agribusiness Chains (REACH) are making a difference on the ground.
REACH has trained farmers in business skills and climate-smart agriculture, and has helped to rehabilitate rural roads, making it easier for farmers to transport their goods to markets.
Northern Uganda, in particular, is seen as a region with high potential for agribusiness, thanks to its vast land and untapped resources. With the right support and investment, it could become a major food-producing area.
Cassava and coffee are two specific crops with strong potential. Demand for high-quality cassava flour and starch is increasing, and businesses are starting to invest in processing and packaging.
Coffee remains one of Uganda’s biggest export crops, and there are still many opportunities to grow the sector through better farming practices, processing, and marketing.
In conclusion, agribusiness in Uganda is full of promise. With continued government support, access to better farming technologies, and more investment in value addition, the sector can grow stronger and more profitable.
If the challenges of low productivity, traditional methods, and limited finance are addressed, Uganda’s farmers can move from surviving to thriving.
Agribusiness has the power to drive the country’s economic growth, reduce poverty, and create new opportunities across all regions.
