Uganda has set an ambitious goal of increasing the value of its processed agricultural exports to $20 billion annually by 2040—five times more than what the country currently earns.
The plan was announced by Amos Lugoloobi, the Minister of State for Planning, during the 16th National Competitiveness Forum 2025 held at Golf Course Hotel in Kampala. The annual forum brings together government officials, private sector leaders, and development partners to discuss strategies for strengthening Uganda’s economy.
New Strategy to Boost Exports
Lugoloobi said the government has launched a new Economic and Commercial Diplomacy Strategy aimed at helping Ugandan embassies gather market information, attract investors, and promote Uganda’s agricultural products abroad.
Uganda aims to increase exports of processed goods such as:
beef
dairy products
coffee
animal feeds
other value-added foods
To support this growth, Uganda has secured:
a $96 million loan under the INVITE Project
a $104 million grant
an $18 million contribution through a Multi-Donor Trust Fund
These funds will help expand the production and export of manufactured and processed agricultural goods.
Farmers Still Face Major Obstacles
Despite the ambitious target, experts say Uganda must overcome serious challenges first.
Many farmers struggle with:
high interest rates on loans, making it difficult to buy machinery
limited access to affordable credit, as banks view agriculture as risky
poor rural infrastructure, including bad roads and unreliable electricity
high transport costs, especially during the rainy season
These problems limit production and make it difficult for smallholder farmers to enter value-addition markets.
Experts warn that unless these barriers are removed, Uganda’s goal of earning $20 billion from processed agricultural exports may remain out of reach.
Concerns Over Animal Feeds Trade Imbalance
Minister Lugoloobi highlighted Uganda’s worrying trade imbalance in the animal feeds sector.
Uganda:
exports only 3,144 tonnes worth $1 million
imports 136,878 tonnes worth $52 million
He said this shows the need to urgently implement import-replacement and export-promotion strategies. Improving product quality, packaging, and standards will also be key to competing in regional markets.
Government Still Optimistic
Despite the challenges, officials remain confident. Lugoloobi stressed the importance of market intelligence, saying exporters need to understand global demand, regulations, and trade routes to succeed.
Patrick Ocailap, Deputy Secretary to the Treasury, said Uganda has strong potential because it already produces key raw materials like maize, soybeans, sunflower, cassava, and fishmeal.
He highlighted the impact of the Parish Development Model (PDM), which had disbursed Shs 3.2 trillion to more than 3.2 million beneficiaries by October 2025. The funds have supported enterprises such as poultry, piggery, coffee farming, maize, and cassava, helping farmers increase production and access markets.
Growing Regional Opportunities
Ocailap noted that:
58% of Uganda’s exports already go to Africa
more than half of Uganda’s animal feeds are sold in regional markets
the African Continental Free Trade Area (AfCFTA) gives Uganda access to 1.4 billion consumers and a combined GDP of over $3 trillion
He added that Africa’s rising incomes and growing urban populations will push demand for processed foods and animal proteins up to seven times higher by 2040, offering Uganda big opportunities.
