The Agricultural Sector continues to be the most important sector in Uganda; it employs approximately 69% of the population and contributed about 26% to the GDP in 2015/16. The Government has increased the allocation to the agricultural sector in the 2016/17 budget to UGX 832.42 billion which represents a 65% increase.
The main agricultural crops include grains, sugarcane, cotton, tea and Coffee which accounts for 20% of total export earnings and a third of foreign exchange earnings. Under the National Development Plan 2, there is an emphasis on the importance of agroprocessing and Value addition of Uganda’s traditional cash crops mainly in cotton ginning, teaprocessing, coffee hauling, tobacco handling.
Agro processing and Value addition in agricultural production can take different forms and levels ranging from the basic to more sophisticated level e.g. packaging, processing, cooling,drying, extracting or any other type of processes that differentiates the product from the original raw commodity. Investment opportunities in agriculture and agro-processing are vast, ranging from cut flower production for exports, oil seed production and processing, cotton production, ginning,spinning and weaving, the production and processing of livestock products.Read More