Italy-Uganda Economic Cooperation: Memorandum of Understanding Signed ItalAfrica-Agritrade Uganda

To promote Trade and Sustainable Agricultural Development, a Memorandum of Understanding   has been  signed between ItalAfrica Centrale and Agritrade Uganda.

Agritrade Uganda  was founded to encourage cross-border trade and the growth of agricultural businesses in Uganda, in order to bridge the gap through collaboration and preparation of small and medium-sized enterprises in the agricultural sector for continuous quality production that allows them to compete on the international market. Italian exports to Uganda last year exceeded 135 million euros with an excellent increase of more than 90% compared to 2023, mainly deriving from machinery and equipment for about 100 million; imports from Uganda to Italy in 2024 are about 400 million with an increase of 49%, primarily for the import of agricultural products.

The agreement aims to foster strategic cooperation in the following key areas:

• Trade Promotion:  Facilitate trade exchanges, trade missions and B2B matchmaking between Italian, Central African and Ugandan companies.
• Agricultural Development:  Support knowledge transfer, technology exchange and capacity building initiatives in the agri-food sector.
• Investment Facilitation:  Encourage cross-border investment in agriculture, agro-processing and related sectors.
• Advocacy & Policy Dialogue:  Jointly advocating for policies that improve agricultural trade and sustainability.
• Events and Networking:  Co-organize seminars, exhibitions and networking forums to promote business connections.

Uganda – underlines the President of ItalAfrica Alfredo Carmine Cestari – has one of the youngest and fastest growing populations in the world, with a market economy rich in natural resources and will also become a priority country for Italian cooperation with the new Three-Year Programming Document: one of the 15 new African entries. The signed agreement represents the fruit of the relaunch of Italian cooperation in Africa, sanctioned by the Mattei Plan. I

Sustainable tourism, mining, enabling infrastructure (energy and digital) and agribusiness are the driving sectors. I believe that Italian companies – adds Cestari – can seize the opportunities for investment or public-private collaboration in all these sectors, starting from infrastructure and agri-food, in line with the priorities highlighted in the development plans of the Ugandan Government and in Vision Uganda 2040, with a primary sector that has ample room for improvement in terms of performance.

In the agribusiness sector, there are good margins in the food processing sector and in all export-oriented initiatives. Thanks mainly to the increase in our coffee imports, we are Uganda's first trading partner, but there is still good untapped potential.

Among the top reasons to trade and invest in Uganda:

• Large and growing consumer market: The World Bank estimates that Uganda's annual population growth rate, about 3 percent, is among the highest in the world. Nearly four out of five Ugandans are under the age of 30, and half are under the age of 15, making Uganda one of the youngest countries in the world.
• Dynamic agricultural market: Most of Uganda is covered by a bimodal agricultural system, which takes advantage of the abundance of fertile soils and good climatic conditions.
• EAC Customs Union and AFCFTA Programme: Uganda's participation in the EAC Customs Union, coupled with the ongoing creation of the Africa Continental Free Trade Area (AfCFTA), which has brought together 55 African nations to trade with each other, has enabled intra-African trade between regional economic communities and the continent as a whole.

The agreement was signed by Grant Chiwera, Chief Executive Officer of AGRITRADE Uganda, at the ItalAfrica headquarters in Rome in the presence of Mario Carvelli, collaborator of ItalAfrica.

Present at the signing of the agreement:

• Mrs. Kituyi Deborah Mabosi – Legal Director – AGRITRADE Uganda
• Mr. Julius Kalulu – Chief Executive Officer – JKCC General Supplies Ltd
• Mr. Matovu Tadeo – Field Officer – JKCC General Supplies Ltd
• Mr. Musinguzi Simon – Managing Director – Sim4d Gadgets and Accessories
• Mrs Norah Faith Behumbiza – Managing Director – Martha's Properties Limited

The Memorandum of Understanding represents a significant step towards greater economic cooperation and sustainable development in the agricultural sector between the regions involved. The Parties – in a joint note – express their enthusiasm for the opportunities that this partnership will create for businesses and communities.

Source: ItalAfrica Centrale