Uganda Courts Saudi Arabia Investors for Agro-Processing, Data Hubs to Narrow Trade Deficit

Andrew Matege·Business·

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Uganda Courts Saudi Arabia Investors for Agro-Processing, Data Hubs to Narrow Trade Deficit

Trade Minister Sanjay Tanna Urges Saudi Arabia to Fast-Track Tech and Agro-Processing Investments

Photo: Courtesy

Uganda has called on Saudi Arabia to bolster bilateral trade and invest in local agro-processing and digital data infrastructure to help narrow the country's $140 million trade deficit with the Gulf nation.

Trade, Industry and Cooperatives Minister Sanjay Tanna has called on the Kingdom of Saudi Arabia to expand bilateral commercial ties, targeting strategic investments in agro-processing, digital infrastructure, tourism, and mineral value addition.

The Minister made the pitch during a diplomatic meeting with the Saudi Arabian Ambassador to Uganda, H.E. Mohammed Bin Khalil Faroudah.

Minister Tanna highlighted Uganda’s move toward a demand-driven production model aimed at stabilizing market prices and securing stable export destinations across key agricultural value chains, including beef, poultry, dairy, fish, and coffee.

“We are here to work. Uganda is ready for business. The opportunities are immense, and we need your collaboration and support,” Minister Tanna said.

Addressing commercial trade opportunities, the Minister urged Saudi Arabia to absorb Uganda's annual sugar surplus of 300,000 tonnes, adding that production capacity could scale to 500,000 tonnes with access to new international markets.

“We need your support to find markets for our products. Uganda has enormous agricultural potential and is one of the most fertile countries in the region,” Minister Tanna added.

In the digital economy sector, Minister Tanna revealed ongoing talks involving a Saudi firm and an Indian enterprise to construct a data center in Uganda, leveraging Saudi Arabia’s expanding footprint in artificial intelligence and data systems.

“I have already briefed the Minister of ICT, and we shall continue discussions before formally engaging you on the proposed data centre project,” he noted.

Responding to the investment proposals, Ambassador Faroudah called for the immediate operationalization of the Saudi-Uganda Joint Technical Committee for Trade Development established in 2025.

“We need to fast-track the implementation of the Joint Technical Committee. The officials and technical groups from both countries should meet together to discuss how to move this forward. I am more than willing,” Ambassador Faroudah said.

Uganda currently faces a substantial trade deficit with Saudi Arabia. Ugandan exports to Saudi Arabia stand at $9.11 million, primarily composed of coffee, tea, spices, chilled meat, and labor services, against imports valued at $149.15 million, dominated by plastics, fertilizers, and industrial sugar.

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