Cotton Initiative Aims to Improve Livelihoods for Local Farmers
The African Development Bank Group has approved a US$2 million grant in technical assistance to support the revival of the cotton value chain in northern Uganda, where cotton remains a key source of income for rural communities.
The funding, approved on 9 December, will be provided through the Fund for African Private Sector Assistance, a Bank-hosted multi-donor trust fund that supports private sector development across the continent. The project will be implemented by Uganda’s Ministry of Agriculture, Animal Industry and Fisheries.
The initiative aims to raise incomes, strengthen local value chains and rebuild rural economies in communities that have faced prolonged economic hardship and limited access to opportunity.
Cotton plays a critical role in northern Uganda’s economy, but farmers have struggled with low productivity, limited access to quality inputs, weak market linkages and ageing processing infrastructure. The project seeks to address these challenges by improving efficiency and competitiveness from farm level to market.
Investments will focus on increasing yields through improved seed varieties, better farming practices and enhanced extension services. Support will also be provided to cotton cooperatives and processing facilities to modernise equipment and improve quality standards. Strengthening linkages between farmers, processors and buyers is expected to help stabilise prices and increase household incomes.
The project is expected to benefit approximately 300,000 smallholder farmers and more than one million people across northern Uganda, including cotton growers, women, youth and workers along the processing and trading chain.
According to Dorsaf Zangar-Labidi, Manager for Industrial Development, Trade and Investment Climate at the African Development Bank, the initiative is designed to deliver tangible benefits to local communities.
“This project will create new opportunities for farming communities, restoring dignity and improving livelihoods,” she said, noting that investment in cotton also supports job creation, climate resilience and food security.
Higher incomes are expected to enable families to invest more in education and healthcare, while new employment opportunities along the cotton value chain are likely to increase participation by women and young people. Strengthened farmer organisations will also improve access to finance and markets.
The project places strong emphasis on sustainability, with training in climate-smart agricultural practices aimed at helping farmers adapt to weather shocks and protect soil health.
