The Board of Directors of the African Development Bank Group has approved a grant of $2 million in technical assistance to support the Cotton Value Chain Project in Northern Uganda, a region where cotton is a vital cash crop.
The initiative, approved on 09 December, is financed by the Fund for African Private Sector Assistance - a Bank-hosted multi-donor trust fund, which provides grants for technical support to boost Africa's private sector. It will be implemented by the Ministry of Agriculture, Animal Industry and Fisheries and aims to raise incomes and rebuild rural economies in communities that have faced years of hardship and limited opportunity.
Cotton is critical to the local economies of Northern Uganda, but many farming communities struggle with low productivity, limited access to quality inputs, weak market links, and outdated processing facilities. This project seeks to change that by improving outcomes from field to market.
New investments will help farmers increase yields through better seeds, improved farming practices, and access to extension services. Cotton mills and cooperatives will receive support to modernise equipment and improve quality standards. Stronger links between farmers, processors, and buyers will help stabilise prices and increase earnings at household level.
Local communities are expected to see lasting benefits. An estimated 300,000 smallholder farmers and more than one million people across northern Uganda will benefit - mainly cotton growers, women, youth and workers along the processing and trading value chain.
Dorsaf Zangar-Labidi, AfDB Manager for Industrial Development, Trade & Investment Climate Division highlighted the project's people-centred focus. "This project will bring new opportunities to farming communities and thereby restoring dignity and improving livelihoods," the manager said. "As a significant cash crop, investing in cotton means we are investing in jobs, incomes, climate resilience and even food security."
Higher farm incomes will enable families to invest in education and health. New employment prospects along the cotton value chain, especially for youth and women, will encourage greater involvement of all community members. Strengthened farmer organisations will give producers a stronger voice and better access to finance and markets.
The project also places strong emphasis on sustainability. Trainings on climate-smart farming practices will help farmers cope with weather shocks and protect soils.
Expected outcomes include higher cotton productivity, improved quality of lint, increased processing capacity, and stronger private sector participation. Improved value addition within Uganda will reduce export losses and keep more value in local economies.
"Over time, the gains expected from this project will contribute to poverty reduction, economic resilience, and regional stability in the region," Zangar-Labidi noted.
