Uganda has announced a major plan to attract shs5.3 trillion, about US$1.4 billion, in agricultural investments, as the country positions itself as a leading food supplier in Africa. The announcement was made at the ongoing Africa Food Systems Forum (AFSF) in Dakar, Senegal, where government officials and business leaders gathered to explore opportunities in food production and agribusiness.
The investment drive focuses on key sectors such as coffee, dairy, beef, maize, and soybeans, which are seen as pillars of Uganda’s agricultural economy. Officials believe the plan will transform food systems, create jobs, and strengthen Uganda’s role as a regional food basket.
Speaking at the event, Uganda’s Minister of State for Agriculture, Fred Kyakulaga Bwino, described the country as one of Africa’s most promising destinations for agribusiness. He noted that Uganda’s fertile land, favorable climate, and fast-growing youthful population give it unique advantages for investment. According to him, Uganda has nearly 46 million people, with over 78 percent of the population under the age of 35. This, he said, provides both a ready labor force and a large domestic market for agricultural products.
Kyakulaga highlighted that Uganda’s economy has been performing strongly. In 2024, the country recorded a GDP growth rate of 6.1 percent, attracted foreign direct investment worth shs11.4 trillion (US$3 billion), and maintained relatively low inflation. He told delegates at the Dakar forum that Uganda is “open, stable, competitive, and endowed with numerous comparative advantages.”
To further encourage investors, the government has introduced several incentives. These include a 10-year corporate tax holiday, VAT exemptions on agricultural seeds and machinery, and the creation of a One-Stop Centre to ease investor registration and support services. Officials believe these measures will make it easier and more profitable for local and foreign companies to commit capital to Uganda’s agricultural sector.
The Uganda Investment Authority (UIA) also presented a blueprint of the opportunities available. According to Mr. Peter Mulira, an Investment Executive at UIA, the coffee sector holds significant potential. He explained that Uganda aims to increase coffee production from 7 million bags to 20 million bags. This target, he said, is not just about planting more trees but about building a sustainable value chain that includes processing, packaging, and export. Uganda is already one of Africa’s top coffee exporters, and officials believe this expansion will boost foreign exchange earnings.
In the dairy sector, Mulira noted that Uganda has the capacity to raise exports from shs12.2 billion (US$3.2 million) to shs4.9 trillion (US$1.3 billion). He explained that this would be achieved through the establishment of modern processing plants and improved cold-chain facilities to maintain product quality. With a growing demand for milk and milk products across Africa, Uganda hopes to become a major supplier.
The beef sector also offers vast opportunities. Mulira told delegates that average beef consumption in Uganda is just 6 kilograms per person annually, which is four times lower than in many comparable countries. Rather than viewing this as a weakness, the government sees it as a chance to grow domestic consumption while boosting exports to regional markets. He invited private investors to partner with Uganda in scaling up production, improving animal husbandry, and expanding processing facilities to meet both domestic and regional demand.
Economists say the new agricultural investment plan could be a turning point for Uganda’s economy. Agriculture already employs a large share of the population, but much of it is subsistence-based. By bringing in large-scale investments, officials hope to modernize farming, create value-added industries, and raise incomes for farmers. The plan also aligns with Africa-wide efforts to strengthen food security, reduce imports, and build resilience against climate change.
Uganda’s move comes at a time when global attention is focused on Africa’s role in feeding its growing population and contributing to international food supply chains. With fertile soils, youthful labor, and strategic government policies, Uganda wants to show that it is ready to become a hub for agribusiness in East Africa.
