Uganda’s Banana Industry: A peek into the profitable agriculture business

Aug 16, 2025 | Agriculture, Uganda | 0 comments

Uganda has been raising awareness of agricultural investment for quite some time. As a country that relies mostly on its agriculture, every spec of different products is important. With new technologies and cultivation methods, Uganda is slowly rising in banana production and export. This marvelous country has yet to reach its full potential in the world of agribusiness and exports.  Let’s take a quick look into one of the country’s finest sectors, banana production. 

Uganda’s banana industry and major plantations act as powerhouses for its agriculture. More than two-thirds (70%) of Ugandan farmers consider bananas to be a major food and income source. Banana plantations cover around 30% of the working agricultural land.

Banana farming and TEXFAD’s vision take the cultivation of bananas to a new level inside the economy. Extracted banana fiber is being used to make cotton and other handcraft materials.

Article Highlights

A large portion of Uganda’s farmers (70%) consider banana to be a major food income source.

Banana is covering almost 30% of the working agricultural land. Uganda is yet to reach the expected growth but working on the process rapidly.

Not only bananas are produced for snacks or deserts, some local species like the ‘Gonja’. ‘Kisubi and ‘Kayinja’ are used to brew alcoholic beverages and beer.

banana in tree<br />

A sneak peek into Uganda’s banana industry

Uganda is the 29th largest producer of bananas. The economic and food security concerns are legitimate. Around 30% of the usable cropland is filled with small banana farms to large plantations. It contributes to household food and income security for 70% of the farmers in the country.

The western zone marked in blue produces more than half of the total banana production. The districts Isingiro, Mbarara, and Bushenyl in the western zone are the top producers here. The south-western zone has been commercialized and they focus on selling bananas more than producing them. There are quite a few different types of bananas found in Uganda. For example, the highland bananas (EAHB) are cultivated for their use as a cooking ingredient. There are also dessert bananas like the ‘Boyoga’ and ‘Sukali Ndizi’ which are consumed as snacks or desserts. You will also find roasting bananas locally called the ‘Gonja’. ‘Kisubi and ‘Kayinja’ are used to brew alcoholic beverages and beer.

Investors willing to reel in profit can focus on the commercial areas and the plantations. There are quite a few challenges for local banana farmers to score a good price for their produce. The value chain inside the country for bananas to reach the final consumer is controversial at the very least.

Uganda: The worth of banana value chain business

According to Asiimwe, the banana value chain is a derivative system of Uganda’s main agricultural value chains in place. The theory behind it is good but the execution falls in heavy favor of the latter participants like the brokers and wholesalers.

The idea behind the value chain

Bananas as a crop is supposed to provide and promote fair income for the farmers. The idea behind the value chain was to make the connection between farmers willing to sell and consumers willing to buy.

Then come the collectors who take the produce to wholesalers and finally retail. The farmers themselves sometimes act as bicycle traders who move the product. When farmers can’t, brokers and middlemen step up to get it delivered for sale.

Where Lies the Problem of the Value Chain?

The situation takes a shocking turn when a vast majority of the brokers and wholesalers extort a cheap price from the farmers. The value chain designed to provide farmers an escape from having their crops rotting in stock makes them the victims of sleazy businessmen who only want to make a profit at their expense. 

Ironically, the question everyone asks is if the value chain is good or bad for business when these businessmen are taking bananas at lower prices from the farmers and selling them for one more buck profit. The value chain if properly implemented is good, but at its present condition, it is nowhere near good for local farmers.

banana in farmer's hand

The Efficiency Spectrum of Uganda’s Banana Farming: The Open Agriculture Journal

A journal published in November 2023 explains how inefficient banana production is in Uganda. It also highlights major challenges that the farmers need to overcome and technological improvements that can significantly increase the production of bananas in Uganda. 

The journal suggests that with enough improvement in technical efficiency, the outputs can be increased by 58%. This is achievable only by adopting better farming practices and technologies. With the possible challenges in mind, they suggested that the 5 to 30 tons of bananas per hectare will soar up to more than 60 tons per hectare per year in Uganda. So the current farming situation is that Uganda is not using its full potential in producing bananas because of these inefficiencies.

banana fibre

Banana Fiber and its Wonders

Uganda’s banana industry has found an interesting new way to be green and creative with extracting banana fibers. These fibers come from old banana plant stems that have historically been thrown away. Let’s look at some interesting use cases for banana fiber and further product development. 

  • Textiles: Banana fiber is a cool addition to the textile industry. TEXFAD has found a way to extract the fiber so it retains the qualities of good fabric. They do experiments with mixtures of different ratios of banana fiber and cotton for more stable sustainability as an alternative to traditional fabric. The fact that this new fabric is good for the environment as well is a bonus.
  • Hand Craft: Banana fabric also has versatile use cases in handmade craft items. Uganda is an agricultural country, handcrafted items are a staple in the economy. Artisans can use these to find new opportunities for employment and make new and unique items. Lampshades, rugs, baskets, coasters, and bags are some of the items that are made from banana fiber.

TEXFAD’s Vision

TEXFAD, a UNDP grantee has mainstreamed Uganda’s banana fiber innovation in recent years. Their vision includes the environmental and social concerns surrounding banana production in Uganda. They also started making fuel for fire from banana waste as an alternative to wood charcoal.

They buy directly from the farmers eliminating the middleman system and their lust for extorting profit out of the farmers. They offer 2.7 USD for a kilogram of dried fiber creating a new revenue stream for the banana farmers. 

The future of banana farming in Uganda looks promising. Uganda’s rich soil is a natural resource. For now, though internal matters like the issues in the value chain need to be addressed. Doing so will let farmers focus on better farming practices and increase the production of bananas by a massive amount.

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