Uganda is banking on value addition, industrial competitiveness, and agro-processing to drive its next phase of economic growth and regional integration, policymakers said during the 16th National Competitiveness Forum (NCF) held at Golf Course Hotel, Kampala.
Officiating at the event, Hon. Amos Lugoloobi, Minister of State for Finance (Planning), said Uganda can no longer afford to export raw materials without adding value.
“Investing in value addition is no longer non-negotiable,” said Lugoloobi. “We must invest more in high-quality processing to guarantee quality, product standardisation, and packaging for food and feeds so that our products can easily access regional markets.”
Lugoloobi noted that despite progress under the Tenfold Growth Strategy and ongoing initiatives, Uganda still lacks adequate capacity to produce high-quality processed foods and animal premixes, which has led to continued dependence on imports.
“It is therefore important that through this dialogue, we understand the missing link and explore strategies of closing the gaps with the view of making the two sectors competitive,” he said.
He added that the government was prioritising market intelligence and export facilitation to enable the private sector to better understand “demand dynamics, trade routes, regulatory changes, and competitor landscapes.”
To this end, Lugoloobi cited the launch of the Economic and Commercial Diplomacy (ECD) Strategy, which leverages Uganda’s foreign missions to collect market intelligence, attract investors, and promote exports and tourism.
He further revealed that the government had acquired a USD 96 million loan under the INVITE Project, a USD 104 million grant, and USD 18 million through a Multi-Donor Trust Fund, resources that are expected to “boost exports of manufactured products and enhance Uganda’s competitiveness.”
Building Competitiveness in Agro-Processing
Delivering the keynote address, Mr Patrick Ocailap, Acting Permanent Secretary and Secretary to the Treasury, said the growing African middle class, rising incomes, and rapid urbanisation are driving an unprecedented demand for processed foods and animal proteins.
“By 2040, demand for processed foods is projected to increase sevenfold,” Ocailap said. “Uganda must establish a competitive animal feeds industry to take advantage of locally available raw materials such as maize, soybeans, sunflower, cottonseed, cassava, sweet potatoes, and fish meal to produce high-quality and affordable compounded animal feeds.”
He added that Uganda already exports 58% of its products to African markets, with more than half of animal feed exports destined for the region. “The African Continental Free Trade Area (AfCFTA) expands this opportunity even further, providing access to 1.4 billion people with a combined GDP of over USD 3 trillion,” Ocailap said.
According to him, the Parish Development Model (PDM) continues to drive production at the grassroots. As of October 2025, the government had disbursed UGX 3.209 trillion to over 3.25 million beneficiaries, with allocations to enterprises such as piggery (UGX 350.3 billion), coffee (UGX 334.2 billion), poultry (UGX 325.8 billion), goats (UGX 289 billion), maize (UGX 247.9 billion), beef cattle (UGX 135 billion), bananas (UGX 154.4 billion), and cassava (UGX 134 billion).
“This continues to boost production, creating backward linkages with smallholder farmers and opening opportunities for value addition,” he added.
Ocailap urged stakeholders to focus on measurable, evidence-based outcomes rather than plans on paper: “The ATM Strategy and NDP IV are not just policy documents — they are practical guides to help us monitor, implement, and achieve real growth. What matters most is how effectively we translate those plans into measurable results.”
INVITE Trust to Ease Access to Affordable Finance
Representing the financing arm of Uganda’s competitiveness agenda, Dr Tom Buringuriza, Chairperson of the INVITE Project Investment Committee, announced that the Trust had received USD 46.9 million from the World Bank’s International Development Association to launch its first lending products.
“We are the component responsible for lending money affordably,” said Dr Buringuriza. “Our role is to revolve these funds — disburse to beneficiaries, recover, and lend again.”
He revealed that the INVITE Trust will offer four key financial products — working capital loans, credit guarantees, invoice discounting, and patient capital — all aimed at helping agro-industrial businesses access low-cost financing.
“We will provide funds to financial institutions at rates below inflation, allowing them to on-lend to you at about 10% interest — much lower than market rates,” he explained.
Uganda’s Competitive Edge in Numbers
According to the Ministry of Finance, food processing contributes 40% of Uganda’s manufactured products, and 40% of processed food products are exported within Africa. The global animal feed market is projected to reach USD 816.8 billion by 2030, presenting vast opportunities for Ugandan producers.
Currently, the East African Community (EAC) imports animal feeds worth USD 747 million and exports USD 255 million, showing a significant gap for Uganda to fill. In 2023, Uganda exported 3,144 metric tonnes of animal feeds valued at USD 1 million, while importing 136,878 metric tonnes worth USD 52 million — highlighting the urgent need for import substitution and capacity building.
