Uganda looks to first-ever cold storage facility to  boost flower, vegetable exports

The Government of Uganda has commissioned the construction of the first-ever perishable cargo handling centre at Entebbe airport that it says will improve the quality of fresh produce exports.

The $10 million (about Shs37.8 billion) solar-powered hi-tech facility is expected to pre-test fresh produce such as flowers, tomatoes, cucumber and green pepper to ensure that they are free pests and diseases and meet export standards.

Trade Minister David Bahati, speaking at the commissioning of the construction works on Friday, said the cold storage facility will be a game changer for Uganda’s horticulture sector.

“As we speak, our export value stands at $5.4 billion and our import value stands at $7 billion. So as a country, we have a trade deficit. And one of the reasons why we can’t export more has been lack of facilities like these,” he said.

Statistics indicate that Uganda’s horticulture exports are worth about $35 million per year, making Uganda the second-largest producer of fresh fruits and vegetables in Sub-Saharan Africa, after Nigeria. However, only about 20% of horticultural production is exported.

 “Horticulture plays an important role in the economic landscape of our country. It stands as the fourth most important export sector, trading only behind coffee, fish and fish products and dairy. This is a remarkable achievement, especially considering the challenge that the sector has faced, including issues related to post-harvest handling and cold storage,” Mr Bahati, who represented Prime Minister Robinah Nabbanja, said.

The government provided a two-acre land near Entebbe International Airport for the facility, which being funded by the Agriculture Business Initiative (aBi) through the Danish Royal Government and the European Union.

All fresh produce destined for export will be subjected to tests at the facility to ensure they meet international phyto sanitary standards

 Former Trade Minister and board member of the Fresh Handling Facility Amelia Kyambadde said they have acquired state of the art machinery to ensure all the goods tested there meet international export standards.

“So once this facility is established, we will ensure that all our goods are up to standard; the flowers, the vegetables and the fruits. First of all, due to the proximity to the cargo handling because also logistical chain has been a problem. But also digitalization that we anticipate to have, when we have this project,” she said.

Danish Ambassador Signe Winding Albjerg said the facility is expected to enhance Uganda’s agro exports, and job creation across the value chain. She said the facility’s use of renewable energy aligns with Uganda’s strategic location in the East African Community.

Daniel Kiryango, the chairman of the board of directors for Fresh Handling Limited, said the facility will have a capacity of 30,000 metric tonnes per year, and will be powered by solar energy, making it environmentally friendly and cost-effective.

The facility will also create direct and indirect employment opportunities for over 30,000 people, mostly young women, and will boost the export potential of the horticulture sector from the current US$ 49 million to US$ 150 million per year, he said.

Mr Paul Mwambu, the commissioner for crop inspection and certification at the Ministry of Agriculture, said the centre will help them in their quest to maintain phyto sanitary standards, which are essential for international trade. He also called on the stakeholders to ensure consistency of quality of standards at the production and transportation stage.

Mr Felix Okoboi from aBi Development Ltd, who are funding the project, said it meets their requirements are under the green investments, which are geared towards mitigating climate change impacts. 

“So we hope to increase our fresh produce exports from Uganda. And to do that you need good quality facilities and that has been lacking in the last 20 years and you need that today if you want to stay competitive in a very difficult market,” he said.

The project is a joint venture between Fresh Handling Limited, aBi Development Ltd under the Green Challenge Fund, a grant scheme funded by the Danish Government and the Government of Uganda that donated a 2-acre plot of land at the Cargo Village, adjacent to the Cargo Centre at Entebbe International Airport, for the construction of the facility.