The Government of Uganda has intensified efforts to frontline Agrotourism above the most popularized wildlife safaris, adventure tourism, culinary tourism and faith-based tourism, among other forms of tourism currently existing on the itineraries of Ugandan, regional, intra-African and international tour operators.
Last week, the government, through the Ministry of Tourism, Wildlife and Antiquities (MTWA), conducted a media agro-tourism familiarization trip and study from February 13 to 16, 2025, designed to highlight the leading agribusiness enterprises in the Western Uganda districts of Ntungamo, Bushenyi, and Mbarara. Participants visited Nshenyi Cultural Village, Kabeihura Mixed Farm, Kyamuhunga Tea Estate, Kabagarame Market, Max Mixed Farm, and Emburara Farm Lodge, where they were awe-inspired by the large-scale agricultural practices and activities at the farms such as poultry farming, fish farming, cattle grazing, coffee farming, goat farming, piggery, tea harvesting, banana juice brewing, beekeeping, among several others.
Agriculture is the backbone of Uganda’s economy, sustaining millions of livelihoods through food production and income generation. However, its potential as a tourism attraction remains largely untapped. Agro-tourism—where agriculture and tourism Interswitch—offers a unique opportunity to showcase Uganda’s rich farming heritage, diverse agricultural landscapes, and sustainable farming practices to both domestic and international tourists.
Despite its significance, agriculture has yet to receive the attention it deserves as a tourism product. Many tourists at both local, regional, intra-African and international levels often overlook the profound cultural and economic experiences embedded in Uganda’s farmlands. From coffee and tea plantations to livestock farms, agribusiness hubs, and organic food markets, agro-tourism has the potential to diversify Uganda’s tourism portfolio, promote rural development, and create immersive experiences for visitors.
Embracing agro-tourism highlights the deep connection between farming and heritage, educates visitors on sustainable agriculture, and opens new revenue streams for farmers and tourism stakeholders alike. Strengthening this synergy will not only enhance agricultural appreciation but also contribute to the growth of Uganda’s tourism sector.
Geoffrey Sseremba, the undersecretary at MTWA highlighted that as Uganda continues to diversify its tourism portfolio, Agro-tourism presents an opportunity to connect visitors with the agricultural sector, local culture and rural communities.
He revealed that the government is committed to supporting farmers and raising awareness about the immense potential of agro-tourism in Uganda. With the country’s rich natural resources and diverse agricultural sector, Uganda has everything it takes to develop a thriving agro-tourism sector without relying on imported models.
Additionally, the Bank of Uganda’s agricultural loan facility provides crucial financial support to farmers looking to expand their operations and enhance productivity. However, industry stakeholders stress that greater investment is required in marketing, value addition, and infrastructure development to fully unlock the sector’s potential and make Uganda a competitive agro-tourism destination.
Hon. Mary Mugyenyi, a legislator in the East African Legislative Assembly (EALA) and proprietor of Nshenyi Cultural Village emphasized the importance of sustainably conserving culture through Agro-tourism, which was the foundation for establishing the Cultural Village. She stated, “Before the introduction of colonialism and the influx of Western culture, we Africans had our own culture and identity, which included agriculture as a major source of livelihood because it provided us with food and defined our values as a people.”
She added, “We have realized that tourism in Africa is often defined by wildlife and animals. However, Africa is not solely about wildlife — many tourists come with the expectation of seeing wildlife. They need to best understand that we have rich cultures that have existed for generations for instance our food, traditional medicine, and ways of living are all integral parts of our identity, and tourists should look forward to experiencing these aspects when visiting Uganda and Africa.”
According to the United Nations Food and Agriculture Organization (FAO), Uganda’s fertile agricultural land has the potential to feed up to 200 million people. Despite this vast potential, only 35% of Uganda’s arable land— which accounts for 80% of the country’s total land area— is currently under cultivation.
In the FY 2022/23, agriculture played a significant role in Uganda’s economy, contributing approximately 24% to the Gross Domestic Product (GDP) and generating 35% of the country’s total export earnings. Additionally, data from the Uganda Bureau of Statistics (UBOS) indicates that about 68% of Uganda’s working population is engaged in agriculture, making it the largest employer in the country.
Uganda produces a diverse range of agricultural products, including poultry, coffee, tea, sugar, livestock, fish, edible oils, and cash crops such as cotton and tobacco. The country is also a major producer of staple foods like plantains, maize (corn), beans, cassava, sweet potatoes, millet, sorghum, and groundnuts, which are vital for both domestic consumption and export.
According to the Dairy Development Authority (DDA) report, Uganda’s annual national milk output reached 2.2 billion liters in October 2018, an increase from 1.8 billion liters in July 2012. As of 2017, per capita milk consumption in Uganda was 62 liters, a significant rise from 25 liters in 1986. Of the total milk produced, 80 percent is marketed, while 20 percent is consumed by the farming households. Additionally, 33 percent of the marketed milk is processed, whereas 67 percent is sold as raw milk.
By June 2019, annual milk production in Uganda had increased to 2.4 billion liters, contributing to export earnings of about US$100 million per year. There is potential for earnings to rise to US$500 million annually if the country can manage the high mortality rates in exotic cattle, mainly caused by tick-borne diseases and the emergence of tick resistance to available acaricides. As of December 2021, Uganda’s annual milk production had grown to 2.81 billion liters, with 800 million liters consumed domestically and over 2 billion liters available for export.
During the 2019/2020 financial year, Uganda earned US$131.5 million from milk exports. According to the Food and Agriculture Organization (FAO), as of December 2022, Uganda’s annual milk output was reported at 3.2 billion liters.
In January 2024, the country recorded an estimated annual milk production capacity of 3.85 billion liters. In the twelve months leading up to the same month, milk exports generated US$264.5 million (approximately UGX 1 trillion), compared to US$102.6 million (approximately UGX 388 billion) in the previous twelve months. By June 2024, the Ugandan president estimated the annual milk production to be at 5.3 billion liters, with national consumption estimated at 800 million liters.
Investment Opportunities in Uganda’s Agriculture Sector
Uganda’s agriculture sector offers immense investment opportunities across various areas, including production, input supply, value addition, processing, standards compliance, exports, and post-harvest handling. The country’s favorable agro-climatic conditions, fertile soils, and increasing government support make it a prime destination for agribusiness investment. Among the most promising sub-sectors are coffee and tea, both of which have substantial growth potential and expanding export markets.
Coffee Sector
Uganda is Africa’s leading coffee exporter and the second-largest producer on the continent. Despite this, only 5.7% of Uganda’s coffee exports reach the United States, presenting a significant growth opportunity. The coffee industry has witnessed steady expansion, fueled by increasing global demand and improved production techniques.
According to the Uganda Coffee Development Authority (UCDA), Uganda exported 5.9 million 60-kilogram bags of coffee in 2022, generating $877 million in revenue. This was an improvement from the 6.5 million 60-kilogram bags exported in 2021, valued at $627 million. The rise in export revenue was primarily attributed to an increase in global coffee prices, which surged from $1.61 per kilogram in 2021 to $2.50 per kilogram in 2022.
Recognizing the sector’s potential, the Ugandan government has developed an ambitious plan to scale up coffee production. The target is to increase the country’s annual coffee output from 402,000 tons to 1.2 million tons by 2025. This expansion presents numerous investment opportunities, including:
- Coffee Farming Expansion: Increased investment in coffee plantations and smallholder farmer support programs.
- Value Addition and Processing: Development of local roasting, grinding, and packaging industries to enhance Uganda’s export earnings.
- Market Expansion Initiatives: Strengthening trade partnerships to boost exports to the United States and other high-value markets.
- Technology and Innovation: Adoption of modern farming techniques, irrigation systems, and quality enhancement practices to improve yields and consistency.
Tea Sub-Sector
Uganda’s tea industry also holds significant investment potential. In 2022, the country produced approximately 80,000 tons of tea, with only 5% of this consumed domestically. The bulk of Uganda’s tea is exported through the Export Auction System in Mombasa, Kenya, which remains the primary marketplace for Ugandan tea.
Despite generating $88.36 million in tea export revenue, the majority of Uganda’s tea is exported in semi-processed form, limiting its potential for higher-value earnings. Additionally, direct exports to the United States remain minimal, despite growing international interest in Ugandan tea. This presents key investment opportunities in:
- Value Addition: Establishment of advanced tea processing and packaging facilities to produce premium teas for direct export.
- Brand Development: Marketing Ugandan tea as a unique, high-quality product to capture niche markets in the U.S. and Europe.
- Direct Trade Partnerships: Facilitating collaborations between Ugandan tea producers and international buyers to bypass traditional auction systems and maximize profits.
- Sustainable Tea Farming: Encouraging eco-friendly and organic tea farming practices to meet rising global demand for sustainable products.
Uganda’s agriculture sector, particularly in coffee and tea, presents lucrative opportunities for investors looking to capitalize on a rapidly growing industry. The government’s commitment to increasing production, improving processing capacities, and enhancing market access provides a solid foundation for agribusiness expansion. Through investment in coffee farming, processing, market development, and sustainable tea production, stakeholders can tap into a highly profitable and globally competitive agricultural sector.
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