FAMReports News Desk | November 2025
Uganda has announced an ambitious plan to increase the value of its processed agricultural exports to twenty billion dollars annually by the year 2040, a target that is five times higher than current earnings. The Minister of State for Planning, Amos Lugoloobi, said the government has introduced the Economic and Commercial Diplomacy Strategy to support foreign missions in gathering market intelligence and attracting investors who can help boost value added agricultural exports.
He explained that Uganda is particularly focused on expanding exports of beef, dairy products, coffee, and other processed commodities. The minister further revealed that Uganda has secured a ninety six million dollar loan through the Invite Project, a one hundred and four million dollar grant, and an additional eighteen million dollars from a Multi Donor Trust Fund to support the expansion of manufactured exports.
These remarks were made during the sixteenth National Competitiveness Forum held at the Golf Course Hotel in Kampala. The annual gathering brings together government officials, private sector actors, and development partners to discuss strategies for improving Uganda’s competitiveness. This year’s discussions centred on opportunities within the food processing and animal feeds sector, particularly in the regional market.
Despite the ambitious goal, experts argue that the current realities in the agriculture sector pose a significant challenge. Many farmers lack access to affordable financing because banks consider agriculture a high-risk enterprise.
Those that lend to farmers often impose high interest rates, making it difficult for producers to acquire machinery and hire skilled labour necessary for value addition.
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Infrastructure challenges further complicate matters. Poor roads, especially in rural areas, limit transport efficiency, while inconsistent electricity supply hinders processing capacity. Analysts warn that unless government addresses these structural bottlenecks, achieving the twenty billion dollar target by 2040 may remain out of reach.
Minister Lugoloobi acknowledged the gaps, highlighting Uganda’s trade imbalance in animal feeds. The country exports only three thousand one hundred forty four tonnes of compounded animal feed valued at one million dollars, compared to imports of one hundred thirty six thousand eight hundred seventy eight tonnes worth fifty two million dollars. He stressed the urgent need for import substitution and investment in high quality processing, standardization, and packaging to enhance regional competitiveness.
Market intelligence, he noted, will be critical in identifying demand, trade routes, and regulatory requirements. Patrick Ocailap, the Deputy Secretary to the Treasury, echoed this optimism, saying Uganda possesses strong raw material potential for the animal feeds sector due to large production volumes of maize, soybeans, sunflower, cassava, and fish meal.
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He added that the Parish Development Model (PDM) is already supporting smallholder farmers, with more than three point two trillion shillings disbursed to over three point two million beneficiaries by October 2025. This has boosted production in enterprises such as piggery, poultry, coffee, maize, goats, and cassava, creating more opportunities for processors and market linkages.
Ocailap also pointed to rising incomes, a growing middle class, and rapid urbanization across Africa, which are driving demand for processed foods and animal proteins. He said this demand is expected to rise sevenfold by 2040. Uganda already exports fifty eight percent of its products to African markets, and the African Continental Free Trade Area offers access to a market of about one point four billion people with a collective GDP of over three trillion dollars.
Government officials remain confident that with improved investment, stronger market intelligence, and enhanced processing capacity, Uganda can still reach its twenty billion dollar export target.
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