President Yoweri Museveni’s new ban on the exportation of raw materials aims to encourage value addition in Uganda, potentially transforming the agricultural sector.
President Museveni issued the Monday April 7, 2025, via the official State House X(Twitter) handle @StateHouseUg with the title; ‘No to Economic Haemorrhage!’
This move is expected to have a significant impact on the country’s economy, particularly in the agricultural sector, which is a major contributor to Uganda’s GDP.
Uganda’s Key Raw Exports
Some of Uganda’s primary raw exports include:
Agricultural Products: Bananas, beans, maize, rice, cassava, tea, coffee, fruits, and vegetables
Livestock and Fisheries: Livestock (meat), dairy products, and fish
Impact on the Agricultural Sector
The ban on raw material exports is likely to affect the agricultural sector in several ways:
Value Addition
By processing raw materials locally, Uganda can increase the value of its exports, creating more jobs and generating higher revenue.
Increased Competitiveness
Value-added products can compete more effectively in the global market, potentially increasing Uganda’s market share.
Diversification
The ban may encourage diversification in the agricultural sector, promoting the growth of new industries and reducing dependence on raw material exports.
Employment Opportunities
The development of value-added industries can create new employment opportunities in rural areas, contributing to poverty reduction and economic growth.
Challenges and Opportunities
While the ban presents opportunities for growth, it also poses challenges, such as:
Infrastructure Development
Uganda will need to invest in infrastructure, including processing facilities, storage, and transportation networks, to support the growth of value-added industries.
Capacity Building
Farmers, processors, and exporters will require training and capacity building to meet international quality standards and compete effectively in the global market.
Market Access
Uganda will need to negotiate favorable trade agreements and ensure access to key markets to benefit from its value-added products.
By promoting value addition and industrialization, Uganda can reduce its reliance on raw material exports and create a more sustainable and competitive agricultural sector.