- 2,263 Agro processing facilities have been established across the country.
- 40% are non-functional and 30% are operating below capacity.
The Ugandan government has significantly increased investments in agricultural value-addition infrastructure.
While releasing the budget strategy for the financial year 2025-2026, Finance Minister Matia Kasaija, said that over 2,263 Agro-Processing Facilities (APFs) have been established across the country, including Zonal Industrial Hubs, National Industrial Parks, and Urban Markets.
However, Kasaija noted that 40% of these facilities are currently non-functional, while another 30% are operating below capacity.
He said that moving forward the focus will be on addressing the constraints that hinder these facilities from achieving full capacity utilization.
There has been notable progress in improving harvest, post-harvest handling, and storage facilities, particularly in the grain and dairy industries.
"These improvements have led to a reduction in post-harvest losses for grain, which decreased from 37% in 2017/18 to 18.2% in FY2022/23",Kasaija noted.
Additionally, dairy storage capacity has increased from 2.7 million liters in FY 2017/18 to 3 million liters in FY2022/23.According to Kasaija, the Government will further boost the agricultural sector and achieve its target of increasing annual export earnings to US$20 billion by 2040.
He outlined several accelerator actions including facilitating small farmers to access affordable credit by increasing long-term capital for SMEs through various funds and schemes such as the Uganda Development Bank (UDB), the Parish Development Model (PDM), the Agriculture Credit Facility (ACF), the Small Business Recovery Fund (SBRF), and World Bank-funded programs like INVITE and GROW.
The government also plans to promote the production of high-value multi-input products, such as nutritional foods and baby foods, which combine ingredients like milk, eggs, maize, vegetables, and fruits.
Additionally, efforts will be made to improve agricultural production and productivity by providing farmers with fertilizers, quality seeds, seedlings, and support for micro-scale irrigation systems to increase yields per acreage.
These initiatives are part of a comprehensive strategy to drive agro-industrialization and enhance the agricultural sector's contribution to Uganda's economy.