Uganda launches climate-smart cross-border market at Elegu border

The Shs 41 billion project is being implemented by TradeMark Africa, with funding support from Denmark’s development agency DANIDA and the European Union

AMURU, August 16, 2025 – Uganda has officially commenced construction of its first climate-resilient and gender-responsive cross-border market in Elegu Town Council, Amuru District, a vital trade hub on the Uganda–South Sudan border.

The Shs 41 billion project is being implemented by TradeMark Africa, with funding support from Denmark’s development agency DANIDA and the European Union [EU]. The initiative aims to shield traders from recurrent flooding, empower women and youth, and enhance commerce along the Elegu–Nimule trade corridor.

Construction was officially launched on Wednesday by the First Deputy Prime Minister and Minister for East African Community Affairs, Rebecca Alitwala Kadaga.

She noted that the market’s design specifically addresses flooding caused by the annual overflow of the River Unyama, which has for years resulted in substantial losses for traders.

Once completed, the new facility will enable more seamless cross-border trade with South Sudan and other neighbouring countries, offering traders and transit passengers a safer and more organised business environment.

In a message delivered by Kadaga, Prime Minister Robinah Nabbanja reaffirmed the government’s commitment to enhancing trade infrastructure, eliminating barriers, and positioning Uganda as a regional leader in economic integration.

“Let us build a market that is not just steel and concrete, but a symbol of transformation—where women, youth, and persons with disabilities have space and opportunity,” Nabbanja stated.

She encouraged traders to take ownership of the facility and leverage it to transform their livelihoods, adding that border trade is expected to grow by more than 30% once the market becomes operational.

The Danish Ambassador to Uganda, Singe Winding Albjerg, said the market would particularly benefit small-scale traders, especially women, who have been disproportionately affected by the impacts of climate change. She added that if successful, the project could serve as a model for other East African border towns.

Sanne Willems, EU Team Leader in Uganda, highlighted findings from a 2024 EU scoping study, which revealed that 80 percent of vendors at Elegu market are women, many of whom face challenges in accessing South Sudanese markets. She noted that frequent flooding has damaged agricultural produce, making it difficult to meet bio-sanitary standards. Willems also pointed out that Uganda informally trades approximately $100 million worth of goods with South Sudan annually, mostly through small-scale traders.

However, Amuru Resident District Commissioner Geoffrey Osborn Oceng warned that other infrastructural constraints could still hinder trade, including the deteriorating condition of the Gulu–Nimule highway, poor drainage, and weak road networks within Elegu. He urged the government to also tackle the root cause of the flooding—River Unyama itself.

The market’s design includes robust flood mitigation measures such as elevating the structure 2.5 metres above known flood levels, reinforced drainage systems, permeable paving, and stormwater retention basins. Climate-smart features will also be integrated, including solar panels, cyclone ventilation, rainwater harvesting systems, and modern waste management solutions.

Allen Asiimwe, Deputy CEO of TradeMark Africa, stated that this is the first market of its kind on the African continent, with architects drawing on 30 years of climate data to ensure resilience against extreme weather events.

Local vendors have welcomed the initiative. Babirye Edith, a trader at Elegu, said the new market would end years of hardship caused by recurrent flooding and market fires.

The two-year project, being undertaken by Ambitious Construction Company Ltd, will also include modern vendor stalls, sanitation facilities, a banking hall, restaurant, daycare centre, loading bays, secure storage, quality control points, and parking space, making it a fully equipped cross-border trade hub.

https://thecooperator.news/mbarara-market-landlords-urged-to-raise-funds-for-redevelopment/

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