With a population exceeding 300 million and a combined gross domestic product of around $240 billion, the EAC is one of the continent’s most economically active regions. However, regional trade in agriculture remains underdeveloped. Most countries continue to export unprocessed commodities to international markets, a long-standing hurdle many are now determined to overcome.
Uganda is among the countries leading the shift towards value addition. According to Melisa Nyakwera, Head of Business and Commercial Banking at Stanbic Bank Uganda, the transformation is already gaining ground.
“The pace is improving. We’re seeing growth in production, investment in value addition, and stronger support from the government in terms of policy and regulation,” said Nyakwera. “There are tax incentives and efforts to attract both local and foreign investment into the sector.”
One area of significant progress is coffee, Uganda’s top agricultural export. Nyakwera noted that the country’s coffee exports had reached $1.5 billion by 2024, a milestone made possible by targeted interventions and improved infrastructure.
Efforts to boost regional integration are also bearing fruit. EAC member states are working to harmonise customs procedures and invest in shared transport infrastructure such as roads and railways, developments that are expected to reduce trade costs and enhance the movement of goods across borders.
Still, Uganda faces notable challenges. Agricultural yields remain low, primarily due to reliance on small-scale, traditional farming methods. Transitioning these into more commercial, large-scale operations is an ongoing process.
“Our production per hectare is still lower than global averages,” Nyakwera explained. “But there’s steady work being done to modernise practices and ensure Ugandan produce meets international standards.”
She added that improved access to markets, both within and beyond the region, is essential to sustaining this progress. Uganda’s geographic position, while landlocked, offers an advantage through its proximity to several neighbouring markets.
“Uganda is well-placed to serve a population of over 200 million across countries like Kenya, Rwanda, Tanzania, South Sudan, and the Democratic Republic of Congo,” Nyakwera said.
Kenya, in particular, plays a vital role in facilitating Uganda’s trade with the world. As the primary gateway to the Indian Ocean, Kenya enables Uganda to export agricultural goods to international markets. It is also a major buyer of Ugandan produce, especially dairy, grains, and sugar.
“Kenya is both a partner in trade logistics and a significant consumer of what we produce,” said Nyakwera.
Stanbic Bank Uganda has been instrumental in supporting the country’s agribusiness sector. As part of the Standard Bank Group, which operates in over 20 African countries, Stanbic offers a range of services including trade finance, working capital solutions, and risk management tools.
“To date, we’ve extended over $200 million in lending to support players across the agricultural value chain, from smallholder farmers to large-scale processors and exporters,” Nyakwera said. “Beyond financing, we provide advisory services and tailored solutions that respond to the specific needs of businesses as they grow.”
--ChannelAfrica--
