Uganda is seeking to attract more French and European investment into manufacturing, agro-processing and technology as the government pursues its ambition of expanding the economy to US$500 billion by 2040.
Data from the Ministry of Finance indicates that Uganda’s exports to the European Union increased from approximately €500 million (Shs2.05 trillion) in 2019 to €1.8 billion (Shs7.38 trillion) in 2025, pointing to growing trade ties between Uganda and the European market.
In the 2025/26 financial year, Uganda’s exports of goods and services reached US$18.42 billion (Shs67.9 trillion), including merchandise exports worth US$15.75 billion (Shs58.1 trillion), according to figures from the ministry.
Finance Minister Henry Musasizi said stronger cooperation with France and other European partners could help Uganda attract investment, access modern technologies and connect domestic businesses to regional and international markets.
“Strengthening cooperation with France and other European partners can help mobilise investment, facilitate technology transfer and create opportunities for Ugandan enterprises to participate in regional and international value chains,” Musasizi said.
He made the remarks during a courtesy visit by the French Ambassador to Uganda, Virginie Leroy, during which the two sides discussed bilateral relations and opportunities to expand economic cooperation.
The engagement comes as Uganda implements its Tenfold Growth Strategy, which aims to grow the economy to US$500 billion by 2040 through agro-industrialisation, tourism, mineral development, and science, technology and innovation.
Achieving the target will require substantial investment in production, processing, infrastructure and technology, alongside stronger links between domestic businesses and international markets.
The government is particularly interested in partnerships that support pharmaceutical manufacturing, steel production, dairy processing and value addition in coffee and other agricultural products. These sectors offer opportunities to retain more value within Uganda, create jobs and increase export earnings.
Coffee, for instance, can generate additional revenue when processed locally into roasted and packaged products rather than exported mainly as unprocessed beans. Local processing creates opportunities in manufacturing, packaging, branding and distribution.
Similar opportunities exist in the dairy industry, where investment could expand the production of cheese, yoghurt, milk powder and other processed products with longer shelf lives, potentially improving access to domestic and export markets.
Musasizi said development partners could support industrialisation through technology acquisition, joint ventures and public-private partnerships. Such arrangements could give Ugandan businesses access to modern production systems, technical expertise and financing while allowing European investors to participate in the country’s growing market.
Uganda’s foreign investment figures also point to opportunities for deeper cooperation. Foreign direct investment reached US$3.24 billion (Shs11.95 trillion) in the 2025/26 financial year, according to the figures cited in the government’s economic data.
Cooperation with France builds on existing development and infrastructure partnerships. The French Development Agency has operated in Uganda since 1993 and committed close to €1 billion (Shs4.1 trillion) to projects in the country since 1998, according to France’s Ministry for Europe and Foreign Affairs.
However, converting diplomatic engagement and growing trade into new factories, higher-value exports and employment will depend on Uganda’s ability to attract and retain productive investment.
Investors will look at the reliability of infrastructure, availability of skilled workers, production costs and the predictability of government policies. Ugandan exporters seeking to expand in Europe will also need to meet the market’s quality, safety and sustainability requirements.
As Uganda pursues its US$500 billion economic ambition, stronger commercial relations with France and the wider European market could provide access to capital, technology and new export opportunities. The impact will ultimately depend on whether these partnerships translate into greater domestic production, industrial expansion and value addition.