Uganda’s Ministry of Trade, Industry and Cooperatives and Denmark have launched a green technology transfer fund worth approximately Shs10.34 billion to reduce post-harvest losses, improve food processing and expand the adoption of climate-friendly technologies across the country’s agricultural value chains.
The initiative is expected to connect Ugandan farmers, processors and exporters with Danish and European Union-based technologies, including solar-powered cold storage, refrigerated transport and energy-efficient food processing equipment.
The fund was launched on the third day of the Renewable Energy Conference at Serena Hotel in Kampala, where government officials and development partners discussed ways to link renewable energy investment with agricultural productivity and export competitiveness.
State Minister for Trade General Wilson Mbasu Mbadi welcomed the initiative, saying targeted financing and technology transfer could help address operational challenges that prevent agricultural produce from reaching domestic and international markets in good condition.
“We must look beyond policy frameworks and focus on their practical execution across our strategic value chains,” Mbadi said.
He noted that the initiative targets 10 agricultural value chains, with interventions designed to address challenges faced by farmers, processors and exporters from production to final markets.
The fund will provide matching grants rather than cover the full cost of investments. Under the cereals and oilseeds funding window, for example, eligible businesses can receive support covering up to 30 per cent of capital expenditure, with the remaining 70 per cent expected to come from their own equity, loans, supplier credit or other financing arrangements.
Eligible investments include grain-drying equipment, improved grain handling and storage facilities, and modern processing systems.
Mbadi said the fund would support technologies such as solar-powered cooling facilities and refrigerated transportation to help preserve the quality of agricultural products, including coffee, tea and grains, while improving compliance with export standards.
“Agriculture and processing remain the backbone of our economy, contributing over 42% of our national export revenues, while food processing alone represents more than 40% of our entire manufacturing output,” he said.
He added that Uganda needed to bridge the gap between clean energy technologies and agricultural production systems to remain competitive in international markets and strengthen resilience to climate change.
The initiative comes as Uganda seeks to increase the value of its agricultural exports by improving the quality, consistency and shelf life of products destined for regional and international markets. Limited cold-storage capacity, unreliable energy supplies and inadequate processing infrastructure can increase operating costs and reduce the prices farmers receive for their produce.
Access2innovation Chief Executive Officer Henrik Anker-Ladefoged said the initiative would connect European technology providers with Ugandan businesses seeking practical solutions to agricultural production and processing challenges.
“With this grant, we can build a bridge between Danish and EU-based green solutions and concrete needs in Uganda. It opens up new business opportunities for European companies, giving them a unique chance to introduce relevant technologies and solutions to the growing markets in East Africa, while contributing to more sustainable development in the region,” Anker-Ladefoged said.
The fund is being implemented through a partnership involving aBi Development Ltd, the Danish non-governmental organisation Access2innovation, the Royal Danish Embassy and the European Union.
The programme has a budget of approximately DKK19 million, equivalent to about Shs10.34 billion or €2.54 million, and is scheduled to run for 24 months.
According to information from Access2innovation, aBi Development and Access2innovation will assess agricultural value chains and identify commercially viable technologies to address challenges involving production, processing, energy, water management and circular-economy practices.
The programme also aims to attract additional private investment by reducing the financial risks associated with adopting new technologies. Its funding model targets at least Shs40 billion in additional co-financing from agribusinesses, development finance institutions and impact investors.
If achieved, that target would mobilise nearly four shillings in additional investment for every shilling of the fund’s initial capital, potentially extending the programme’s reach beyond its direct grant funding.