PSFU launches study on Advancing Uganda’s Agricultural Trade through Efficient Borders
PSFU launches study on Advancing Uganda’s Agricultural Trade through Efficient Borders
Uganda is intensifying efforts to unlock the full potential of its agricultural trade by addressing cross-border inefficiencies that continue to undermine competitiveness and farmer incomes.
This commitment was reaffirmed during 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), on Tuesday, 30th September, at Protea Skyz Hotel, Naguru.
The dialogue brought together government agencies, private sector leaders, and development partners to discuss findings from a groundbreaking study titled “Advancing Uganda’s Agricultural Trade through Efficient Borders.”
The study—conducted across key One-Stop Border Posts (OSBPs) including Busia, Malaba, Lwakhakha, and Elegu—underscored the pivotal role of cross-border trade in driving Uganda’s economic growth, regional integration, and poverty reduction.
According to the findings, Uganda’s total exports reached USD 7.12 billion in 2024, while informal agricultural trade within the East African region—dominated by commodities such as maize, beans, dairy, coffee, fish, and fruits—remained a critical contributor, generating USD 566.6 million in 2023.
This sector sustains thousands of smallholders, particularly women, who constitute more than 70% of informal traders.
Despite progress achieved through regional initiatives such as the Electronic Single Window, the EAC Customs Union, the COMESA Simplified Trade Regime, and the African Continental Free Trade Area (AfCFTA), traders still face significant bottlenecks. Non-tariff barriers (NTBs) continue to inflate costs and prolong clearance processes, with exporters to Kenya spending an average of 355 hours to complete cross-border procedures.
The Uganda–Tanzania corridor alone experiences estimated annual losses of USD 16.7 million due to NTBs, with broader economic impacts exceeding USD 95 million. Traders continue to grapple with multiple inspections, inconsistent sanitary and phytosanitary (SPS) measures, inadequate storage facilities, and unreliable connectivity—challenges that are especially damaging for perishable goods.
Nearly 90% of traders surveyed reported costly delays leading to daily losses of USD 100–250, while informal traders—particularly women and youth—remain vulnerable to unofficial fees, insecurity, and poor infrastructure.
Restrictions on key products such as maize, milk, eggs, and sugarcane—often linked to uneven enforcement of food safety standards—have further complicated trade flows.
Nevertheless, the study notes gradual improvements attributed to digitised customs systems and streamlined documentation. About 37.5% of respondents reported moderate improvements in border efficiency, while 27.5% observed significant progress.
The high-level dialogue served to disseminate the study’s findings, officially launch the report, and chart a joint roadmap for policy, legal, and institutional reforms to strengthen agricultural trade.
Key priorities identified included reducing NTBs, addressing financing constraints, improving cooperative governance, and enhancing value addition within agricultural value chains.
Participants reached consensus on several critical actions—among them, securing strategic commitments from government agencies, financial institutions, and private sector actors to close financing gaps, tackle regulatory bottlenecks, and promote inclusive market access.
They also pledged multi-agency support to strengthen farmer protection, improve extension services, and advance agricultural competitiveness across borders.
Overall, the dialogue marked a significant step toward a more efficient and inclusive cross-border trade system—one that promises to empower farmers, boost export earnings, and enhance Uganda’s role in regional trade integration.
