Denmark grants Uganda US$300,000 to reduce horticultural export costs
Air freight dominates perishable exports, and its expense limits margins and restricts which products can compete internationally.
UGANDA – Denmark has awarded a US$300,000 (UGX1.05 billion) grant to HortiFresh, Uganda’s business membership organization for the fresh fruit and vegetable sector, to improve compliance, reduce logistics costs and access international markets, according to TradeMark Africa.
TradeMark Africa’s Sustainable Inclusive Trade in Africa (SITA) programme will implement the two-year initiative.
The partnership will pilot sea-freight solutions for avocados and other horticultural products, offering a more cost-effective alternative to air freight.
Uganda has significant potential to expand horticultural exports, but businesses face barriers to competing consistently in international markets, including meeting stringent quality requirements, maintaining traceability, accessing affordable logistics and securing reliable buyers.
In addition, the project will work with exporters and industry partners to improve compliance and strengthen the value chain for fresh fruit and vegetable exports.
A central component is a pilot programme to assess the commercial viability of shifting some horticultural exports from air to sea freight.
The project will document results and lessons to build confidence among exporters, buyers and logistics providers. If commercially viable, the approach could create opportunities to transport avocados and other products at lower cost.
For investors, the key point is Ugandan horticulture’s cost structure. Air freight dominates perishable exports, and its expense limits margins and restricts which products can compete internationally.
If sea freight proves viable for avocados, it would increase export volumes and improve returns for growers and exporters alike, though transit times and cold-chain requirements remain key variables to address.
Moreover, Jim Tumusiime, proprietor of Karye Fresh Foods Ltd, highlighted five key constraints facing horticultural exporters: access to suitable packhouse equipment, logistics, compliance, affordable finance and access to international markets.
“If we can get these five right, it would be a game changer. I’m very sure we would compete,” Tumusiime said.
Lilian Mwai-Ndegwa, Acting Senior Director for the East African Community and Central Africa at TradeMark Africa, said the partnership spans the entire export journey, from compliance and traceability to logistics and market access.
Lastly, funded by Denmark, SITA is part of a five-year, US$30 million partnership with TradeMark Africa to support the implementation of the African Continental Free Trade Area and improve trade along key corridors.
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