Upgrading Ugandan Exports: Opportunities for Value-added Diversification

This diagnostic study was prepared as part of the project titled “Strengthening the capacity of LDCs to formulate policies on trade diversification for resilient recovery from the COVID-19 pandemic and implementation of the Doha Programme of Action through South-South cooperation and multi-stakeholder partnerships”. The project aims to enhance the capacity of participating LDCs to formulate policies on export diversification and achieve trade related goals and targets of the Doha Programme of Action for the LDCs (DPoA).

Funded by the UN Peace and Development Fund, the project identifies three pilot countries, Bangladesh, Rwanda, and Uganda, to conduct diagnostic studies on export diversification. LDCs face significant challenges in achieving sustained and resilient economic development. While a few LDCs have succeeded in making some progress in economic structural transformation, the majority of them urgently need to build productive sectors with high export potential and increase export diversification in order to achieve sustained and resilient development and withstand external shocks. The DPoA addresses these needs by setting ambitious targets in the decade of action for LDCs to increase their trade competitiveness and export diversification.

Despite significant export growth over the past two decades, Uganda remains dependent on a limited range of minimally processed commodities. This report explores Uganda’s potential to diversify its exports and enhance value addition through targeted development of high-potential value chains. The analysis identifies key value chains—processed foods, animal feed, and beauty and personal care products—that offer opportunities for value-added growth. To address the barriers that hinder the realization of this potential, the report recommends policy actions focusing on infrastructure development, enhancing financial inclusion, strengthening quality and compliance systems, and fostering capacity building. Additionally, climate resilience, digital trade, public-private dialogue, and regional integration, particularly through AfCFTA, are highlighted as critical to sustainable export diversification. The strategies put forward by the diagnostic study aim to promote long-term economic growth, address external vulnerabilities, and achieve greater resilience in Uganda in a dynamic global trade landscape.

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