By Sharon Atieno
Uganda will receive funding from the European Union (EU) and Denmark to build its first climate-resilient market. The announcement was made during the Uganda-EU Business
Insights Conference in its capital, Kampala.
The facility to be constructed in Elegu, a border town between Uganda and South Sudan, is designed to deal with extreme weather disruptions, particularly flooding.
The development will include flood mitigation measures spanning 11 acres, a new climate-resilient market building with trading spaces for up to 1,500 traders, solar power, fire protection systems, and improved waste management, including a water supply system. The market will also incorporate childcare facilities to support women’s participation in trade. Infrastructure upgrades will also improve accessibility for people with disabilities.
The project also includes the development of a market management charter, training of trader associations on market management, and financial and business training for traders, to strengthen small and medium-sized enterprises.
“The development of the Elegu Market is a major step in strengthening Uganda’s trade and economic resilience. As a main gateway to South Sudan, which is one of our largest export markets, this modern facility will enhance cross-border trade while addressing the long-standing challenge of flooding that has disrupted businesses and livelihoods. The market aligns with Uganda’s two development goals, such as the Parish Development Model, which focuses on transforming local economies by enhancing production, value addition, and market access,” said Mwebesa Francis, Uganda’s Minister of Trade, Industry and Cooperatives.
The market is part of The Uganda Trade Support (TUTs) Project funded by DANIDA; and the EU’s SmallScale Cross-Border Trade Enhancement Programme (SSCBTEP) along Corridor 11, two initiatives being facilitated by partners including TradeMark Africa.
TUTs targets the enhancement of Uganda’s quality infrastructure by establishing a testing laboratory at Busia One Stop Border Post (OSBP) and improving the compliance of Ugandan exports such as coffee and cocoa with the EU’s Deforestation Regulations and eco-labeling. In addition, TUTs will support the creation of two green-free zone areas. TUTs initiatives are expected to be completed by 2027.
The SSCBTEP will enhance trade efficiency and inclusivity along the main trade route linking Uganda and South Sudan. Focused on the Elegu-Nimule border, it will tackle infrastructure bottlenecks, cut trade delays, and boost market access for small-scale cross-border traders, especially women and youth. Interventions include climate-resilient market facilities, and financial and digital skills training.
“The new market will not only benefit local businesses, but it will also strengthen Uganda’s trade position with South Sudan. Furthermore, the climate-proof design will enhance the resilience of businesses to regional climate events like floods and extreme temperatures. This means fewer disruptions and more stable trade,” said Signe Winding Albjerg, Denmark’s Ambassador.
“South Sudan is an important trading partner for Uganda and Team Europe is happy to provide support in both soft and hard infrastructure at the Elegu-Nimule border under our Global Gateway Initiative. The project will not only improve cross-border trade between Uganda and South Sudan but also support income generation for many poor households, the majority of which are female-headed,” said Jan Sadek, EU Ambassador to Uganda.
Speaking on behalf of TradeMark Africa, which is overseeing the project, CEO David Beer said, “We are delighted to lead the development of Uganda’s first climate-resilient market, an initiative that reinforces our commitment to sustainable infrastructure, and complements our ongoing enhancements at the One Stop Border Posts on both sides of the border. We aim to ensure that physical infrastructure developments are paired with targeted improvements in the lives of the communities we support, with a particular focus on empowering women.”
