The initiative, approved on December 09 and financed by the Fund for African Private Sector Assistance, will be implemented by the Ministry of Agriculture, Animal Industry and Fisheries. The trust fund provides grants to strengthen Africa’s private sector through targeted technical support.
Cotton plays a central role in the livelihoods of farming communities across Northern Uganda, but years of hardship have left the sector grappling with low productivity, limited access to quality inputs, weak market linkages and outdated processing facilities. The new project is designed to address these constraints across the entire value chain, from farm to market.
Investments will focus on helping farmers raise yields through improved seed varieties, better farming practices and expanded access to extension services. Cotton mills and cooperatives will be supported to modernise equipment and improve quality standards, while stronger links between farmers, processors and buyers are expected to stabilise prices and increase household earnings.
An estimated 300 000 smallholder farmers and more than one million people are expected to benefit, including cotton growers, women, youth and workers involved in processing and trading activities. Strengthened farmer organisations are also expected to improve producers’ access to finance and markets, while giving them a stronger collective voice.
The project places a strong emphasis on sustainability, with training in climate-smart agricultural practices aimed at improving resilience to weather shocks and protecting soil health.
AfDB Manager for Industrial Development, Trade and Investment Climate Division Dorsaf Zangar-Labidi highlighted the people-centred approach of the initiative, noting that investment in cotton supports jobs, incomes, climate resilience and food security.
Higher farm incomes are expected to enable families to invest more in education and health, while new employment opportunities along the value chain should encourage greater participation by women and youth.
Expected outcomes include higher cotton productivity, improved lint quality, increased processing capacity and stronger private sector involvement. By expanding value addition within Uganda, the project is also expected to reduce export losses and retain more value in local economies, contributing over time to poverty reduction, economic resilience and regional stability.
–AfDB/ChannelAfrica–
