Northern Uganda cotton revival gets Shs 7.2bln boost
Farmers will access improved seeds, modern farming techniques, and extension services, while cotton mills and cooperatives receive support to upgrade machinery and meet quality standards
KAMPALA, March 20, 2026 — Northern Uganda’s cotton farmers are set to reap big gains after the African Development Bank [AfDB] approved US$2 million [approximately Shs 7.2 billion] in technical assistance to modernise the sector and raise incomes. The grant aims to turn around low productivity, outdated processing, and weak market links that have long hampered the region’s key cash crop.
The project, implemented by the Ministry of Agriculture, Animal Industry and Fisheries [MAAIF], is financed through the Fund for African Private Sector Assistance, a multi-donor trust fund supporting private sector growth in Africa.
It targets 300,000 smallholder farmers, cooperatives, and over one million people involved in cotton production, processing, and trade.
Farmers will access improved seeds, modern farming techniques, and extension services, while cotton mills and cooperatives receive support to upgrade machinery and meet quality standards.
Stronger links between producers, processors, and buyers are expected to stabilise prices and boost household earnings.
Dorsaf Zangar-Labidi, AfDB Manager for Industrial Development, Trade and Investment Climate, said: “Investing in cotton is investing in jobs, incomes, climate resilience and food security. This project will create real opportunities and restore dignity to farming communities.”
The initiative also emphasises climate-smart practices, sustainability, and local value addition. By increasing productivity, improving lint quality, and expanding processing capacity, the project aims to retain more value within Uganda and reduce export losses.
Officials say the project will also enhance youth and women’s participation in the cotton value chain, strengthen farmer organisations, and contribute to poverty reduction, economic resilience, and regional stability.
https://thecooperator.news/nasarri-partners-with-cooperatives-to-revamp-cotton-farming/
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