Uganda is stepping up efforts to unlock the full potential of its agricultural trade by tackling cross-border inefficiencies that continue to undermine competitiveness and farmer incomes.
At a high-level multi-stakeholder dialogue convened by the Private Sector Foundation Uganda (PSFU) with support from the Alliance for a Green Revolution in Africa (AGRA), government agencies, private sector leaders, and development partners gathered to discuss the findings of a groundbreaking study on “Advancing Uganda’s Agricultural Trade through Efficient Borders.”
The study, conducted across key One-Stop Border Posts (OSBPs) at Busia, Malaba, Lwakhakha, and Elegu, underscores the centrality of cross-border trade to Uganda’s economic growth, poverty reduction, and regional integration.
Uganda’s total exports reached USD 7.12 billion in 2024, with the East African Community (EAC) accounting for a major share.
Informal agricultural trade—dominated by commodities such as maize, beans, dairy, coffee, fish, and fruits—remains critical, contributing USD 566.6 million in 2023 and providing livelihoods for thousands of smallholders, especially women, who make up more than 70% of informal traders.
Despite progress made through trade facilitation tools such as the Electronic Single Window, the EAC Customs Union, the COMESA Simplified Trade Regime, and the African Continental Free Trade Area (AfCFTA), persistent non-tariff barriers (NTBs) continue to drive up the cost and time of doing business.
Traders face challenges including multiple inspections, inconsistent sanitary and phytosanitary (SPS) measures, and lengthy clearance times averaging up to 355 hours for exports to Kenya. On the Uganda–Tanzania corridor alone, NTBs cause estimated annual losses of USD 16.7 million, with wider economic impacts surpassing USD 95 million.
Infrastructure gaps at border points, inadequate storage facilities, and unreliable connectivity further compound the problem, especially for perishable goods.
The study revealed that nearly 90% of traders experience costly delays, leading to daily losses of USD 100–250 and spoilage of produce. Informal traders, particularly women and youth, remain vulnerable to unofficial fees, poor networks, and insecurity.
Restrictions on products such as maize, milk, eggs, and sugarcane—often tied to uneven enforcement of food safety standards—pose additional barriers.
However, there are glimmers of progress. Trade facilitation measures have improved operations for many traders, with 37.5% of respondents reporting slight improvements and 27.5% citing significant gains, largely due to digitised customs systems and streamlined documentation.
Yet, the study highlights the urgent need for coordinated reforms to sustain and expand these gains while ensuring inclusivity.
The high-level dialogue aimed to disseminate these findings, officially launch the study report, and craft a joint roadmap for policy, legal, and institutional reforms.
Key objectives included mobilising strategic commitments to reduce NTBs, address financing constraints, strengthen cooperatives, and improve value addition in agricultural value chains.
Participants agreed on several key outcomes, including reaching stakeholder consensus on priority policy, legal, and financial reforms to strengthen cooperatives and agricultural value chains.
They also secured strategic commitments from government, financial institutions, and private sector actors to address financing gaps and regulatory bottlenecks, alongside pledges for enhanced multi-agency support to promote inclusive market access, extension services, and farmer protection.
The dialogue further marked the official launch of the study reports as a blueprint for future advocacy, programming, and policy engagement, and resolved to establish a technical working group to drive follow-up actions on financing solutions, policy reforms, and cooperative capacity-building.
Speaking at the event, PSFU emphasised that efficient borders are not only about faster trade but also about empowering smallholder farmers and ensuring women and youth can compete fairly in regional markets.
With agriculture accounting for nearly a quarter of Uganda’s GDP and employing the majority of its workforce, the dialogue marked a critical step toward turning policy aspirations into practical solutions.
The roadmap emerging from this engagement is expected to strengthen Uganda’s role as a key supplier of agricultural goods within the EAC, COMESA, and AfCFTA frameworks.
By reducing border delays, harmonising trade policies, and investing in inclusive infrastructure, stakeholders aim to enhance Uganda’s competitiveness, protect farmer incomes, and drive sustainable economic growth across the region.