Uganda Government & Private sector launch the first logistics program to unlock potential of Uganda’s export sector.

The government and the private sector have launched a five year program that will help unlock the potential of Uganda’s exports sector.

Named the Public-Private Exports Logistics Development Programme (PPELDP), the initiative aims to address critical logistics challenges that have long hindered Uganda’s export potential, including high transport costs, inadequate storage facilities, and regulatory bottlenecks.

The initiative was launched during the third  Annual National Exports Logistics Dialogue (NELD) at Four Points by Sheraton Hotel in Kampala.

Speaking during the launch,  the Minister for Agriculture, Frank Tumwebaze, who was represented by the Permanent Secretary described the initiative as being timely and transformative as it will bolster Uganda’s capacity to reach international markets and expand the economic potential of our agricultural sector.

“Uganda’s agricultural sector plays a central role in our economy, contributing 32% to our national GDP and employing over 70% of our population. Yet, for our agriculture to achieve its full potential on the international stage, we must address the logistical challenges that hinder our exports and invest in infrastructure, value addition, and compliance systems that ensure our products are competitive and meet international standards,”Tumwebaze said.

He said the Ministry of Agriculture remains committed to promoting the production of high-quality agricultural products suitable for export.

“Our role is to ensure that Uganda’s agricultural products not only meet domestic needs but are also able to compete in demanding global markets. MAAIF is working to develop and promote cold chain solutions, providing producers with reliable options for refrigeration and transport. This is essential for perishable products such as fruits, vegetables, dairy, and meats, which require precise temperature controls from farm to market.”

“Furthermore, we are collaborating with various stakeholders to establish bulking centers in key agricultural regions. These centers will allow smallholder farmers to consolidate their produce, enhancing both the quality and quantity of agricultural exports while reducing transport and handling costs. Bulking centers will also streamline the inspection and certification process, a critical component for export-readiness.”

He added that the ministry’s export strategy also emphasizes value addition, noting that  investing in technologies that transform raw agricultural products into higher-value goods, Uganda can enhance export revenues and create job opportunities.

Tumwebaze warned that compliance with international sanitary and phytosanitary (SPS) standards is a non-negotiable requirement for global market access, noting that the ministry will continue making rigorous inspection and certification.

He noted that the launch of the program is a good example of how collaboration between government and the private sector can yield sustainable solutions to our export challenges.

The Minister for Works and Transport, Gen Katumba Wamala who was represented by the commissioner of transport Winston Katushabe said the initiative is a testament to the ministry’s commitment to strengthening export logistics.

“This program is designed to address specific challenges faced by exporters, particularly small and medium enterprises (SMEs), by leveraging the strengths of both the public and private sectors. The Ministry of Works and Transport will work closely with all stakeholders to ensure the success of this initiative,” he said.

The minister said the initiative will help strengthen the logistics infrastructure, promote digital transformation, optimize national transport assets and facilitate policy reforms.

Kenneth Ayebare, the chairperson of the logistics sector at the Private Sector Foundation Uganda said according to the Logistics Performance Index(LPI), the country ranks 102^nd out of 139 countries, worse than Rwanda and Kenya who rank 57^th and 68^th respectively.

This implies that, Uganda’s transport and logistics industry is small, weak, informal, fragmented, and inefficient (World Bank, 2016). This increases the cost of production and trade, lowers optimal capacity utilization of manufacturing firms, and reduces market access and, consequently, economic growth. Uganda’s transport and logistics sector is inefficient and costs the country shs 3 trillion annually, a considerable loss,” Ayebare said.

He however noted that despite the low levels of regional competitiveness, Uganda’s geographical position as a central distribution hub, bordering all countries in the region with exception of Burundi, provides hope for ease of market expansion for its products and income generation from the logistics and transport Industry if we give the required support to its development.

“ Domestic supply chains, and cross border supply chains dominate the Logistics Industry in Uganda.  Being a country that is dependent on importation of goods as it is with other land locked countries, most private sector investments in logistics have largely been vested in infrastructure that supports imports rather than exports.”

He noted that the Public-Private Exports Logistics Development Programme (PPELDP) will help address the critical inadequate investment in Uganda’s domestic supply chains, particularly in agri-logistics.

“The programme will help SMEs access competitive markets by improving transportation networks for agricultural commodities, linking producers to urban centers and expanding their market reach.”

Ayebare said PPELDP focuses on fostering public-private partnerships to develop essential logistics infrastructure, such as cold chain storage facilities and logistics hubs to  enhance the efficiency of supply chains, reduce food waste, and drive economic growth by making Uganda’s exports more competitive on regional and global stages.