Ugandan farmers growing coffee, cocoa, avocados and passion fruit may soon earn more from their produce as Uganda moves to deepen agricultural trade links with the Netherlands.
DFCU Bank recently hosted officials from the Netherlands–Uganda Trade and Investment Platform, the Dutch Embassy and Rabobank at its headquarters in Nakasero, Kampala. The meeting discussed ways to expand agricultural trade and improve earnings for farmers and agribusinesses.
Uganda exports goods worth about $184 million (about Shs710 billion) to the Netherlands each year and imports goods valued at around $289 million (about Shs1.1 trillion). The Netherlands is Europe’s largest agricultural exporter and serves as a key gateway into the wider European Union market.
For Ugandan farmers, this relationship offers access to buyers willing to pay higher prices for agricultural products.
Agriculture remains the main pillar of Uganda’s economy. The sector supports more than 65 percent of the population and contributes about 24 percent to the country’s economic output. However, many farmers still struggle with low farm-gate prices, limited technology and weak access to international markets.
Kate Kiiza, Executive Director and Chief Corporate and Institutional Banking Officer at DFCU Bank, said stronger trade partnerships could help farmers increase their earnings.
She said agriculture supports millions of Ugandan households and cooperation with the Netherlands could help shift the sector towards more commercial and export-oriented farming.
Through partnerships with Rabobank and the Dutch development bank FMO, DFCU Bank is promoting improved seed varieties, modern farming methods and stronger agricultural value chains. FMO has already invested more than $205 million (about Shs790 billion) in Uganda.
Programmes such as Best Farmers are also helping thousands of farmers improve the quality of their produce and meet international export standards.
Corrine Abbas, First Secretary for Economic Cooperation at the Dutch Embassy, said the partnership aims to support both large farms and smallholder farmers across rural areas.
She said the initiative will help small farmers, including women and young people, grow their enterprises into sustainable businesses that can export and create jobs.
Bank of Uganda Executive Director for Research and Policy Adam Mugume told participants that inflation is expected to remain stable, although higher global fuel and shipping costs may still affect trade.
He said Uganda’s stable economic policies and growing international partnerships continue to boost investor confidence.
Experts say the partnership could help farmers access better prices, create jobs in processing and packaging, and expand access to financing and training.
They also note that Dutch agricultural technology, including greenhouse farming, could help Ugandan farmers raise productivity and respond to climate challenges.
Analysts expect the partnership to grow in the coming years as the Netherlands seeks reliable suppliers of tropical produce while Uganda looks for new markets and investment.
DFCU Bank said the next phase will focus on expanding trade finance and supporting agribusinesses that add value to products before export.
