EU, Denmark To Fund Uganda’s First Climate-Resilient Market
Uganda will establish its first climate-rich market in Elegu with financial support from the EU and Denmark. The facility will host up to 1,500 traders and will be designed to endure extreme weather disruptions, especially flooding, that have long plagued border towns. The announcement was presented at the Uganda-EU Business Insights Conference in Kampala, Uganda on February 13, 2025.
Located at the border crossing between Uganda and South Sudan, Elegu facilitates multi-million-dollar trade between Uganda and its neighbors. For example, trade with South Sudan through Elegu was approximately US$220 million, according to Uganda Taxation Bureau, for example. However, the region is hit by floods in both rainy seasons each year, delaying the loss of small cross-border traders, including humanitarian goods, including humanitarian goods, sweeping stalls and flooding goods on the market. Global Reporting Magazine. Various investigation reports show that market infrastructure is poorly capable of coping with such extreme weather events, while traders repeatedly protest against insufficient sanitation and water facilities, which has led to the disease outbreak.
The development will include flood mitigation measures spanning 11 acres, a new climate-resilient market construction with trading spaces that can accommodate up to 1,500 traders, solar energy, fire protection systems, and improved waste management, including water supply systems. About 70% of Elegu’s traders are women and the market will be included in parenting facilities to support their participation in trade. Infrastructure upgrades will also improve accessibility to people with disabilities.
In addition to physical upgrades, the project also includes the development of a market management charter, training of the Traders Association in Market Management, and financial and business training of traders to enhance small and medium-sized enterprises. Officials expect these improvements will provide a year-round, all-weather, climate-proof market, increasing parenting access for female traders from 10% to 90% and expanding cross-border trade in agricultural products.
The market is Uganda Trade Support (TUTS) Project Funded by Danida; and the EU Small-scale cross-border trade enhancement plan ((SSCBTEP) Along Corridor 11partners including African trademarks have provided a boost to both initiatives.
TUTS has improved Uganda’s quality infrastructure by establishing a test laboratory (OSBP) at Busia One Stop Border Post (OSBP) and increasing compliance with Uganda exports such as coffee and cocoa and EU deforestation regulations and ecological markings. In addition, TUT will support the establishment of two green free zones. The TUTS plan is expected to be completed in 2027.
SSCBTEP will improve trade efficiency and inclusiveness on the main trade routes linked to Uganda and South Sudan. Focusing on the Elegu-Nimule border, it will address infrastructure bottlenecks, cut trade delays, and promote market access for small cross-border merchants, especially women and youth. Interventions include climate vulcanized market facilities and financial and digital skills training.
After the announcement of the funds, Uganda Minister of Trade, Industry and Cooperatives, Hon. Mwebesa Francis says:”The development of the Elegu market is an important step in strengthening Uganda’s trade and economic resilience. As the main gateway to South Sudan, one of our largest export markets, this modern facility will enhance cross-border trade while addressing the long-term challenges of flooding, undermining businesses and livelihoods. Markets with Uganda
Development goals, such as the parish development model, focus on changing the local economy by enhancing output, value-added and market acquisition. We appreciate the valuable support of the development partners in making this market a reality. ”
Danish ambassador signed Albjerg and said: “Denmark proudly joins the EU and Ugandan governments to establish an exaggerated climate market on the Uganda-South Sudan border. This is a strategic boundary that serves the entire East African community. Elegu Market will directly support up to 1,500 informal traders, mainly women, youth and people with disabilities, who will increase their income and livelihoods. The new market will not only benefit local businesses, but will also strengthen Uganda’s trade position with South Sudan. In addition, climate protection design will enhance the resilience of enterprises to regional climate events such as floods and extreme temperatures. This means less disruption and more stable trade. As part of our European team, we are pleased to launch this global gateway project. ”
The EU ambassador to Uganda, he said “We are honored to join our member states Denmark in the European team’s actions to promote small-scale cross-border trade on the Uganda-South Sudan border. South Sudan is a key trading partner in Uganda and the European team is happy to support the soft and hard infrastructure of the Elegu-Nimule border under our global portal initiative. The project will not only improve cross-border trade between Uganda and South Sudan, but also support income generation for many poor families, most of whom are women. ”
CEO David Beer said the representative spoke on behalf of the trademark Africa, which is overseeing the project. “We are pleased to lead the development of Uganda’s first climate vulcanization market, an initiative that strengthens our commitment to sustainable infrastructure and complements our continued enhancement in one-stop border positions on both sides of the border. We aim to ensure targeted improvements in the development of physical infrastructure and the lives of the communities we support, with a particular focus on empowering women.transparent
