President Yoweri Kaguta Museveni has urged Iranian investors to establish agro-processing factories in Uganda rather than acquire large tracts of land for commercial farming, saying the country stands to gain more from adding value to locally produced agricultural commodities.
President Museveni said Uganda offered investment opportunities in processing cocoa, coffee and pineapples, noting that agro-industrialisation could create jobs, expand trade and increase export earnings.
He made the remarks on Monday, October 26, 2026, while meeting outgoing Iranian Ambassador to Uganda Majid Saffar at State House, Entebbe. The discussions covered cooperation in agriculture, healthcare, education and trade.
The President was responding to Saffar’s disclosure that Iranian investors were interested in establishing agricultural farms in Uganda.
“The best way is to build factories in Uganda to process agricultural products from our Ugandan farmers. Let the people here produce, and your companies process,” President Museveni told the ambassador.
He proposed a model in which Ugandan farmers supply agricultural raw materials while foreign investors establish factories to turn them into finished or semi-processed products for domestic and export markets.
The approach would allow farmers to concentrate on production while creating opportunities for investment in processing, manufacturing and related industries.
Saffar said Iranian companies were interested in processing Ugandan agricultural products and expressed readiness to support cooperatives and agricultural unions to strengthen commercial agriculture and trade.
“You’re rich in agriculture, and there are a lot of Iranian companies interested in processing Ugandan agricultural products such as cocoa, coffee, pineapples, and we’re ready to support cooperatives and agriculture unions in that line to promote trade and job creation,” he said.
The proposed cooperation could create additional markets for farmers and agricultural cooperatives while encouraging investment in facilities that process locally grown produce before export.
Healthcare and education cooperation
The two officials also discussed opportunities to strengthen bilateral cooperation in healthcare and education, alongside agricultural investment and trade.
President Museveni thanked Saffar for his service in Uganda as he concluded his diplomatic assignment.
“Thank you for a successful tour of duty, and I wish you good luck in your future assignments,” the President said.
Museveni comments on Middle East tensions
The meeting also touched on the security situation in Iran and the wider Middle East, with President Museveni urging countries in the region to move away from identity-based politics.
He argued that religious and national identities should not be used to justify hostility between countries or determine how communities relate to one another.
“My only advice to the Middle East is to stop the politics of identity. You have the wrong politics and wrong methods of solving problems,” he said.
President Museveni referred to tensions between Iran and Israel, calling on the two countries to recognise one another and urging Israel to recognise Palestinian statehood.
“Iran should recognise Israel. Israel should recognise Palestine,” he said.
The meeting concluded Saffar’s tenure as Iran’s ambassador to Uganda, with the two sides expressing interest in strengthening bilateral relations through cooperation in agriculture, agro-processing, healthcare, education and trade.