If you want to start agricultural business in Uganda, we can provide you the guidelines and show you the opportunities. Just go through the article. We hope you will catch on the details. You can access the opportunities here.

Uganda is considered agricultural potential to be among the best in Africa, with low temperature variability, fertile soils, and two rainy seasons over much of the country – leading to multiple crop harvests per year.  According to the UN’s Food and Agriculture Organization, Uganda’s fertile agricultural land has the potential to feed 200 million people. 80% of Uganda’s land is arable but only 35% is being cultivated.

How is the agriculture of Uganda?

In 2022/23, agriculture accounted for about 24% of Uganda’s GDP and 35% of export earnings. The UBOS estimates that about 68% of Uganda’s working population is employed in agriculture.

Uganda produces a wide range of agricultural products including livestock, coffee, tea, sugar, fish, edible oils, cotton, banana, corn, beans, cassava, sweet potatoes, millet, sorghum, and groundnuts. Commercialization of the sector is impeded by farmers’ limited use of fertilizer and quality seeds, and a lack of irrigation infrastructure, rendering production vulnerable to climatic extremes and pest infestations.

Agricultural sector growth is also impaired by the lack of quality packaging capabilities, insufficient storage facilities, poor post-harvest handling practices, shortage of agricultural credit, high freight costs, the lack of all-weather feeder roads in rural areas, a complicated and inefficient land tenure system, and limited knowledge of modern production practices. Ugandan producers often find it difficult to meet sanitary and phytosanitary standards required to export goods to Europe and the United States.  Ugandan poultry, sugar, and milk products face export restrictions from Kenya.

1. Cereal crops

Maize, millets, rice, and wheat are the most important cereal crops cultivated in Uganda. Apart from wheat, these crops supply staple sustenance to more than half of the world’s population. They’re also becoming more important in terms of providing revenue to rural people and the national economy. Rainfall amount and distribution determine high potential locations for each crop to a great extent. Typically, maize requires moderate to heavy rainfall evenly distributed throughout the growing season.

After maize, finger millet is Uganda’s second most significant cereal. Its production is centered in the country’s east, north, and southwest. The districts of Apac, Lira, Gulu, Kitgum, Iganga, Kamuli, Soroti, and Tororo account for up to 65 per cent of the country’s total land area.

In Uganda, grain sorghum is the third most significant cereal crop. It is grown extensively in dry short grass areas in the northern, eastern, and south-western regions of the nation. It is highly significant in the districts of Kabale, Kisoro, and Rukungiri. It can withstand drought better than maize or finger millet, making it an essential food security crop. Sorghum is critical to the country’s food security and the livelihoods of many rural people.

2. Coffee

In Uganda, coffee contributes the highest revenue. The crop plays an important role in increasing the country’s GDP and household livelihood is on a stable and promising growth path, with greater potential for creating jobs and value addition aimed at both domestic and international markets.

Uganda is a significant producer of Robusta coffee, but Arabica is also grown, particularly on the slopes of Mount Elgon and Mount Rwenzori. Coffee accounts for 20-30% of the country’s foreign exchange earnings. Uganda is dependent on smallholder farmers, who typically intercrop coffee with food crops like bananas and beans.

3. Biofertilizer

Biofertilizer is a product made composed of live microorganisms that aid plants to flourish by boosting nutrient delivery. When applied to seeds, soils, and plants, soil nutrients are increased or made available organically for plants. The market meets a strong worldwide expansion since biofertilizers are necessary for natural production.

Farmers are widely utilized to produce various crops for high demand, such as wheat, rice, and olive oilseed, that fix their biofertilizers. This market has a significant growth in Uganda as the country is preferable for agriculture. The Ugandan government and various organizations provide ferlizers to farmers through initiatives aimed at promoting research, improving cultivation practices, and facilitating access to markets.

4. Cattle

Cattle is considered for the commonest amongst the Ugandan farmers in the livestock sector. The national cattle herd is about 11.4 million cattle. Most of it comes from the western and eastern regions of the country. With a few from the central region, northern region. Cattle herds are managed for various purposes, including meat production, dairy farming, and draught power. Farmers often employ traditional herding techniques, but modern practices such as vaccination, deworming, and breeding programs are becoming more common.

Domestic demand for beef remains strong in Ugandan, driven by population growth and urbanization. Additionally, there are opportunities for cattle farmers to tap into regional and international markets, particularly in neighboring countries and export markets. The Uganda government provides support to the livestock sector through various programs aimed at improving breeding, healthcare, and market access for cattle farmers. These initiatives include extension services, training programs, and infrastructure development projects.

5. Fisheries

Fillet constitutes about 37%–40% of the total fish and the remaining 60%–63% is basically by-products which in most cases have low commercial value. The major type of fish being dealt with in Uganda is Nile perch because of its availability and high demand in the export market. Uganda produces over 36,000 tons of fish by-products annually with several distribution channels for fish by-products. Nile Perch skins are being processed into leather at an on-site tannery on a pilot scale by Gomba Fishing Industries, a fish processing plant in Uganda on the shores of Lake Victoria. It is hoped that this leather may be sold into the international fashion world in the future.

6. Forestry

Uganda grows several tree species that have the capacity to avail whatever category of timber that the market may require. Most of trees today are grown for timber and production of pole to be used for construction. It is estimated that about 500,000 square metre of wood is consumed as sawn timber and 2,000,000 square metre of round wood annually. The wood utilization industry in Uganda is characterized by poor harvesting and processing methods and limited value addition. The methods include use of pit-sawmills and the chain sawmills.

Most of these saw mills mobile in nature with an average recovery of 45% hence more than 50% of the wood is lost as waste. Wood by-products or wastes include chippings, slabs, off-cuts, sawdust and shavings. Sawdust is main by-product from wood. A tour of saw milling sites in Uganda reveals that there are a large heap of sawdust which is usually burnt as a way of disposing. However, burning is largely discouraged by environmentalists as a means of waste disposal method. Saw dust is the major by-product from wood. The total sawmilling residues (saw dust and off cuts) are estimated to be 440,000 square metre.

7. Poultry

The nation chicken flock for Uganda was estimated to be 37.4 million with eastern region having the highest number of 10.7 million birds and the western region with the least number of 7.2 million birds. Establishing a chicken farm for meat production or egg-laying purposes can be profitable.

You can choose between broiler farming for meat or layer farming for egg production. Operating an egg distribution business where you collect eggs from small-scale poultry farmers and sell them to retailers or directly to consumers can be a viable opportunity. Producing value-added poultry products such as chicken sausages, nuggets, or marinated chicken can cater to consumers looking for convenient meal options.

8. Banana Plantation

Bananas have become the staple food of many in Uganda and also other countries. With over 90% of all Ugandan districts planting bananas, there is a high love and market for bananas. Countries neighbouring Uganda like South Sudan do not grow bananas as compared as how Uganda does yet they enjoy eating bananas too, so they provide a market for bananas in Uganda.

Banana plantations are found across Uganda, with some of the major banana-growing regions being central, western, and eastern Uganda. These regions have suitable climates and soils for banana cultivation. While most bananas grown in Uganda are consumed domestically, there is potential for increased exportation. Efforts to improve quality standards and develop value-added products could expand Uganda’s presence in international markets.

9. Bee Farming

Bee farming in Uganda offers promising opportunities due to its diverse ecosystems and rich biodiversity. Uganda’s varied climate and ecosystems provide suitable conditions for beekeeping. Uganda produces various types of honey, including wild forest honey, bush honey, and organic honey. The country has the potential to increase honey production through sustainable beekeeping practices.

There is a growing demand for honey both locally and internationally. Uganda honey can be marketed domestically in supermarkets, health food stores, and through direct sales. Export opportunities exist, especially for organic and specialty honey varieties.

In addition to honey, bee farming in Uganda can yield other value-added products such as beeswax, propolis, royal jelly, and bee pollen. These products have various applications in cosmetics, pharmaceuticals, and food supplements.

10. Juice Production

Uganda is blessed with so many fruits, you do not need to import many fruits from abroad in order to make quality juice. So with the juice-making machinery in place, starting up a juice production business can be considered as one of the business ideas.

Your juice can be for mangoes, oranges, lemons or any other fruits and vegetables. Though there is some competition in this sector, you can still make good money out of it if your juice has something unique about it to your competitors.

Conclusion

Uganda has been a reliable and popular hub for agricultural business. You can try your luck to benefit from opportunities here. This place has great potential. So, grab the opportunity and make the best investment.