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Uganda

   In-depth analysis of investment cases
         Key financial data (coming soon)
          Impact highlights (coming soon)
Uganda 2026

INVESTMENT PROFILE
967.51M
(in USD) Total Investment
28%
Internal rate of return
260.86M
(in USD) Total NPV
SUSTAINABILITY BENEFITS
410.5
(in USD) Per capital Income increase
4.65M
Direct beneficiaries
40.3M
tonnes GHG impact

The Hand-in-Hand Initiative in Uganda is supporting the country’s Vision 2040 in transforming Uganda’s economy from low-income into a competitive upper-middle-income country, through sustainable Agro-industrialization for inclusive growth, employment, and wealth creation.  The initiative aims to pilot the development of investment plans such as dairy and leather processing, animal feed manufacture, maize processing and mechanization, and banana processing, based on the Hand in Hand typologies in four national zones covering more than 30 districts.

These value chains are considered key in Uganda as the livestock sector contributed approximately 4% to the national GDP and 17% to the agricultural sector in 2022. The sector is also on a growth path averaging about 9%. In addition, maize, dairy and beef are among the 12 strategic value chains in the National Development Plan for food security, export earnings and agro-industrialisation.

The HIH Initiative uses geospatial, biophysical and socio-economic data, as well as advanced analytics to identify territories where agricultural transformation and sustainable management of forest and fisheries have the greatest potential for alleviating poverty and hunger. GIS analysts, economists, agronomists, and other experts bring analytics, models, and mechanisms to the Initiative. Numerous partnerships with leading research institutions across the world also enrich the informational and analytical content of these tools. The integration of technical tools informs policymaking and contributes to capacities of countries.

Geospatial Typologies

Agro-informatics connects information technology with the management, analysis and application of agricultural data to indentify territories with untapped agrifood potential and design more accurate and targeted agrifood interventions. The use of new technologies and techniques in agriculture, such as satellite imagery, remote sensing, and geographic information systems, enable the transformation of data into actionable information.

POVERTY
POTENTIAL
EFFICIENCY
Poverty
Potential
Efficiency
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Investment cases in Uganda

Investment cases and interventions

Hand in Hand initiative

Hides, skins & leather processing

INVESTMENT
USD 70.66M
INTERNAL RATE OF RETURN (%)
31.61%
NET PRESENT VALUE
USD 18.29M
DIRECT BENEFICIARIES
600,00
INDIRECT BENEFICIARIES
2M
INCOME INCREASE PER CAPITA
300 USD/person
EMISSION REDUTION (EXACT)
+1.5M tCO₂e

There is currently strong demand for leather products, but small and medium enterprises have limited capacity to meet this demand. As a result, the country relies heavily on imports, highlighting the need to develop the domestic leather sector, improve quality, and satisfy internal market needs. The industry faces major challenges, including poor animal husbandry and inadequate preservation methods, which result in low-quality hides and skins.

To address these issues, investments are being directed toward establishing two central tanneries to serve four zones, along with a new shoe and leather goods factory. Annual production targets include 1.7 million kilograms of crust leather, 1.5 million kilograms of finished leather, 2.7 million kilograms of wet blue leather, 780,000 kilograms of gelatine, 37 million handbags, and 209 million pairs of shoes. The total investment is estimated at USD 70.7 million including the government commitment to necessary resources for providing land, and establishing necessary infrastructure such as roads, electricity, internet, and water supply, valued at USD 47 million. The investment gap open for private sector financing is of USD 24 million is expected to yield an Internal Rate of Return (IRR) of 31.6 %, benefiting 600,000 suppliers of livestock for hides/skins. 
Hand in Hand initiative

Dairy processing facilities

INVESTMENT
USD 425.22M
INTERNAL RATE OF RETURN (%)
25.83%
NET PRESENT VALUE
USD 43.79M
DIRECT BENEFICIARIES
1.2M
INDIRECT BENEFICIARIES
1.5M
INCOME INCREASE PER CAPITA
700 USD/person
EMISSION REDUTION (EXACT)
1.5M tCO₂e
maize uganda

Animal feed facilities

INVESTMENT
USD 184.29M
INTERNAL RATE OF RETURN (%)
26.71%
NET PRESENT VALUE
USD 167.93M
DIRECT BENEFICIARIES
1.2M
INDIRECT BENEFICIARIES
2M
INCOME INCREASE PER CAPITA
677 USD/person
EMISSION REDUTION (EXACT)
1.9M tCO₂e

One-stop and mechanizaation centres

INVESTMENT
USD 11.28M
INTERNAL RATE OF RETURN (%)
22.52%
NET PRESENT VALUE
USD 1.51M
DIRECT BENEFICIARIES
550,000
INDIRECT BENEFICIARIES
1.2M
INCOME INCREASE PER CAPITA
150 USD/person
EMISSION REDUTION (EXACT)
15.2M tCO₂e

Uganda’s maize sector faces major challenges that limit productivity and profitability, particularly due to the high cost of inputs such as seeds and agrochemicals. Although demand for maize seeds exceeds 8,000 tonnes annually, input quality remains low, largely due to weak regulatory enforcement, poor quality control, and inadequate storage and handling practices. Additional constraints include limited access to support services, high machinery costs, and a shortage of technical skills among producers. To address these issues, there is a need to restructure the agro-input distribution system and expand mechanization services. Investments will focus on two key areas: inputs such as seeds, fertilizers, and agrochemicals, and machinery and equipment. The first set of interventions will enhance regulatory inspections by the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) and support the development of large-scale seed and input storage facilities. The second will increase the availability of farm equipment, including tractors, and fund the recruitment and training of technical personnel. The total investment is estimated at USD 11.3 million including the government commitment to necessary resources valued at USD 1.5million. The investment gap open for private sector financing is of USD 9.8 million is expected to yield an Internal Rate of Return (IRR) of 22.5 %, benefiting 550,000 producers. 
maize uganda

Maize processing facilities

INVESTMENT
USD 18.29M
INTERNAL RATE OF RETURN (%)
29.40%
NET PRESENT VALUE
USD 1.89M
DIRECT BENEFICIARIES
120,000
INDIRECT BENEFICIARIES
1M
INCOME INCREASE PER CAPITA
286 USD/person
EMISSION REDUTION (EXACT)
25.2M tCO₂e
Hand in Hand initiative

Banana processing

INVESTMENT
USD 51.73M
INTERNAL RATE OF RETURN (%)
30.40%
NET PRESENT VALUE
USD 39.12M
DIRECT BENEFICIARIES
1M
INDIRECT BENEFICIARIES
1.1M
INCOME INCREASE PER CAPITA
350 USD/person
EMISSION REDUTION (EXACT)
 15M tCO₂e

The investment case for the banana sector focuses on unlocking significant value addition potential. Despite high production levels—over 13 million tonnes annually—banana exports remain low, resulting in substantial surplus. Moreover, most farmers leave banana pseudo-stems in the fields after harvest, missing opportunities to convert them into valuable products such as ethanol and banana fibre. To capitalize on this surplus and address the low level of value addition, proposed interventions aim to reduce post-harvest losses by establishing processing facilities in four zones. These facilities will produce banana juice and include dedicated lines for processing banana fibre and ethanol. Annual production targets include over 3,600 litres of banana juice, 179,550 kilograms of banana fibre, and 1,154,250 litres of ethanol. The total investment is estimated at USD 52 million including the government commitment to supporting this investment by providing land, and establishing necessary infrastructure, valued at USD 2.5 million. The investment gap open for private sector financing of USD 49 million is expected to yield an Internal Rate of Return (IRR) of 30.4 %, benefiting 1 million workers and suppliers.

Resources

FAO's Hand-in-Hand Initiative
21/12/2023

The Hand-in-Hand (HIH) Initiative supports the implementation of nationally led, ambitious programmes to accelerate agrifood systems transformations...

In the Media

Contacts

For more information, please contact the Hand-in-Hand team