Sector Size and Structure
Agriculture is a core sector of Uganda’s economy. It
contributed about 23% of GDP at current prices in
2011. Agricultural exports accounted for 48.5% of
total exports in 2012. The sector provides the basis
for growth in other sectors such as manufacturing
About 60 percent of Uganda’s population is engaged
in agriculture, forestry and fishing. Agriculture
has grown at an average rate of 2.8% per year in
the last 8 years. It presents immense opportunities
for growth in other sectors like manufacturing
It is for these reasons that the sector has been given
priority in the national development plan.
The Agricultural sector is structured along the
i. Traditional Cash Crops:
include coffee, cotton, tea, cocoa, tobacco,
ii. Non-traditional Cash Crops:
include; Maize, Rice, Beans, Soya Beans, palms, and
Horticultural produce. The cash crops subsector
accounted for 9% of agricultural value added
products and grew by 16.2 % in FY2011/12.
iii. Livestock sub-sector:
The Livestock Census (UBOS 2008) indicated that
the national cattle herd is estimated at 11.4 million,
12.5 million goats, 3.4 million sheep, 3.2 million pigs and 37.4 million poultry birds. The Census
also showed that livestock numbers had increased
across all animal types: cattle, sheep, goats, poultry
and others. But livestock production levels could
only meet half of the domestic and regional demand.
Growth in the sector has been achieved as a result
of a favourable macroeconomic environment, policy
and institutional reforms including liberalisation of
The fishing subsector accounted for 3.1 % of
GDP at current prices in the 2011/12 financial
year.. 20% of Uganda’s surface area is covered
by water. The country has enormous potential for
fresh water fisheries and aquaculture production.
Uganda’s fisheries resources are diverse in aquatic
ecosystems and in fish species bio-diversity.
Players in the Sector
The agricultural sector is fragmented and dominated
by small farmers most of whom combine subsistence
farming with cash crop and livestock farming.
Most farmers own land individually except in parts
of Northern Uganda where pastoralists land is
owned communally. Farming is gradually becoming
mechanised although the bulk of cultivation is still
done by hand or cattle driven ox ploughs.
Large / Commercial scale farming of cash crops
is found in parts of the Central, South and South
Western parts of Uganda. There are commercial
plantations of tea, palms, rice, and sugarcane.
Coffee and banana plantations tend to be small
although in some parts of the South West, there are
some commercial scale banana plantations that
supply produce to Kampala and other urban centres.
Livestock farming is on a small scale; by small
farmers too, although of recent commercial ranches
are gradually beginning to increase in parts of the
Commercial fishing is still rare. Small scale fish
mongers catch fish from Uganda’s lakes and rivers
and sell it. Increasingly, fish processing plants are being set up to process and pack frozen fish for
export. There are investment opportunities involving
developing commercial fishing fleets, processing
plants and fish farms.
Ministry of Agriculture, Animal Industry and
Fisheries (MAAIF). There are eight semi autonomous
bodies which report to the Ministry for policy
• National Agricultural Research Organisation
• National Agricultural Advisory Services (NAADS)
for delivery of advisory services;
• National Animal Genetic Resource Centre and
Data Bank (NAGRC&DB) for animal genetic
• Coordinating Office for the Control of
Trypanasomiasis in Uganda (COCTU) ;
• Diary Development Authority (DDA) for
promotion of Dairy development;
• Uganda Coffee Development Authority (UCDA)
for promotion of coffee development;
• Cotton Development Organisation (CDO) for
promotion of cotton development;
• Plan for Modernisation of Agriculture Secretariat
Demand Drivers and
resource base factors
Demand for agricultural produce is driven by:
• Local, Regional and Global population growth
• International demand for organic agricultural
• Changing dietary needs
• Demand for bio fuels
• Rise in per capita income
• Demand for ethical products
• Food purchases by humanitarian organisations like World Food Programme
• Government policy to improve the sector.
Resource Base Factors
Uganda is endowed with:
• Fertile soils
• All year round sunshine with moderate temperatures
• Sufficient rainfall
• Many lakes and rivers with sizeable stocks of aquatic life and
• Its surrounded by neighbouring countries that are not able to produce enough food to feed their populations.
Agriculture Growth Trends
Source: UBOS Statistical Abstract 2012
Investment and Business Opportunities
Investment opportunities exist in Primary production, Value addition and Services in this sector.
- Commercial farming opportunities exist in traditional and non-traditional cash crops targeting local, regional and international markets; apiculture development; and sericulture development
- Commercial fish farming
- Poultry farming
- Animal farming
- Green house farming for seasonal commodities like vegetables, fruits and flowers so they are available all year round.
Food Processing: Coffee roasting and grinding plants, grain processing, fish and beef canning, tomato paste, Fruit Juice Extraction, Natural fibre processing, instant coffee processing. Butter and cheese production, yoghurt, milk curds, UHT milk, Hides and skin processing, Honey processing, bees wax, silk textiles, production of animal feeds, production fertilizers, production pasta out of maize, manufacture of cooking oil from nuts and maize, hatcheries
- Storage facilities for grain, milk, coffee.
- Transport management and logistics.
- Setting up abattoirs in different parts of the countries to supply to urban areas and for export.
- Commodity brokerage
- Agricultural Institutional financing
- Advisory services for both crops and animals
- Farm implements, inputs and machinery
- Veterinary and plant medicine
Sector Specific Licensing Requirements
(Refer to Appendix 3)
Sector Specific Incentives
These are provided in manufacturing and agro-processing sub-sectors
Useful Addresses and Contacts
Ministry of Agriculture, Animal Industry and Fisheries,
Plot 5, Kyadondo Road.
Block A, Legacy Towers,
P.O. Box 34518
Fax; 256 414 255183
General Email: email@example.com