The African Development Bank Group Board of Directors has approved a $2 million grant in technical assistance to support the Cotton Value Chain Project in Northern Uganda, where cotton remains a crucial cash crop. Approved on 09 December, the initiative is financed by the Fund for African Private Sector Assistance, a multi-donor trust fund hosted by the Bank that provides grants for technical support to strengthen Africa’s private sector. The project will be implemented by the Ministry of Agriculture, Animal Industry and Fisheries and aims to raise incomes and rebuild rural economies in communities that have faced years of hardship and limited opportunity.
Cotton is vital to Northern Uganda’s local economies, but many farming communities contend with low productivity, limited access to quality inputs, weak market linkages, and outdated processing facilities. The project seeks to address these challenges by enhancing outcomes from the field to the market. Investments will help farmers improve yields through better seeds, advanced farming practices, and access to extension services. Cotton mills and cooperatives will receive support to modernize equipment and meet quality standards, while stronger connections between farmers, processors, and buyers aim to stabilize prices and increase household earnings.
The initiative is expected to benefit around 300,000 smallholder farmers and more than one million people across Northern Uganda, including cotton growers, women, youth, and workers along the processing and trading value chain. Dorsaf Zangar-Labidi, AfDB Manager for Industrial Development, Trade & Investment Climate Division, emphasized the project’s people-centred focus, noting that investing in cotton supports jobs, incomes, climate resilience, and food security, while restoring dignity and improving livelihoods for local communities.
Higher farm incomes will allow families to invest in education and health, while new employment opportunities along the cotton value chain, particularly for youth and women, will encourage broader community engagement. Strengthened farmer organizations will provide producers with a stronger voice and better access to finance and markets.
The project also emphasizes sustainability, with training on climate-smart farming practices to help farmers adapt to weather shocks and protect soils. Expected outcomes include higher cotton productivity, improved lint quality, increased processing capacity, and stronger private sector participation. By enhancing value addition within Uganda, the initiative aims to reduce export losses and retain more economic value locally. Over time, these gains are anticipated to contribute to poverty reduction, economic resilience, and regional stability in Northern Uganda.
