Overview:
Uganda’s flower industry could double its workforce to 20,000 people if the government addresses high costs and infrastructure gaps, according to industry officials and trade experts.
KAMPALA, Uganda — Uganda’s floriculture industry could double its workforce to 20,000 employees if the government addresses regulatory hurdles and improves infrastructure, according to industry officials.
Susan Muhwezi, head of the Export-Led Growth Strategy Unit, said the sector currently employs approximately 10,000 people, the majority of whom are women and youth. During a trade forum on Dec. 11, Muhwezi noted that while the industry is a top 15 foreign exchange earner for Uganda, it has stagnated over the last 10 years.
To reach the 20,000-job milestone, industry players say the government must help lower high freight and logistics costs and resolve issues with electricity and road infrastructure. Muhwezi noted that better access to suitable land and clearer taxation policies are also required to make the business environment more competitive.
The Uganda Flower Exporters Association (UFEA) has set a goal to increase annual export earnings from $65 million to $300 million. Esther Nekambi, executive director of UFEA, said achieving this growth requires expanding cultivation from 300 hectares to 1,000 hectares.
Nekambi noted that the European flower market is projected to grow to more than $25 billion by 2033, representing a major opportunity for Uganda. However, she warned that high certification costs and weak cold-chain infrastructure at Entebbe International Airport currently limit the sector’s ability to compete with regional neighbors like Kenya and Tanzania.
The Ministry of Trade, Industry and Cooperatives has pledged to establish a joint inter-ministerial committee to tackle these constraints. Permanent Secretary Lynette B. Bagonza said the government aims to support a tenfold growth strategy for the industry, which began with only two hectares of production in 1992.
Industry managers, including Dimple Mehta of Rosebud Ltd., emphasized that energy reliability is a primary concern. Mehta said flower farms often rely on expensive generators for irrigation and cold storage because the national power supply remains inconsistent.
UFEA is now calling for public-private partnerships to improve airport facilities and a removal of taxes on critical inputs to attract the estimated $100 million in private investment needed to modernize the sector.