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 will 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 during 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. Mbadi said agriculture and processing remain the backbone of the economy, contributing over 42 per cent of national export revenues, while food processing alone represents more than 40 per cent of entire manufacturing output.
The fund will provide matching grants rather than cover the full cost of investments. Under the cereals and oilseeds funding window, 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. The fund will also 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.
Access2innovation Chief Executive Officer Henrik Anker-Ladefoged said the initiative would connect European technology providers with Ugandan businesses seeking practical solutions. "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," he 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 and aBi Development, the programme will assess agricultural value chains and identify commercially viable technologies to address challenges involving production, processing, energy, water management and circular-economy practices. The funding model aims to attract additional private investment by reducing the financial risks associated with adopting new technologies, with a target of mobilising 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.