Uganda’s agricultural export sector entered a new era on Thursday, 20th November 2025, as President Yoweri Kaguta Museveni flagged off the country’s first consignment of dried chili to China. The landmark event, held in Bunambo Village, Kamuli District, is poised to reshape farming systems in the Busoga subregion and position the area as a major hub for high-value crop production.
The shipment—three containers carrying 11 tonnes of dried chili—marks the first commercial export under the Uganda–China chili protocol signed at the 2024 FOCAC Summit. For Busoga, where chili production has been expanding under partnerships with Chinese agribusiness investors, the moment represents both an economic breakthrough and a validation of years of farmer mobilization.
A Turning Point for Busoga’s Agricultural Economy
Busoga has long struggled with pervasive rural poverty, land fragmentation, and limited access to premium markets. Yet with chili now formally accepted into the vast Chinese market, the region stands at the threshold of a significant agricultural shift.
President Museveni described chili as a “gold crop,” emphasizing its high value-to-acreage ratio and potential to raise household incomes if adopted widely.
“These crops—chili—are among the gold mines that we Africans must embrace. This is just the introduction. If we take this seriously, it will take us very far,” he said.
The Busoga Consortium for Development, working with Kehong Agricultural Industrial Park and other partners, has already mobilized thousands of farmers across Kamuli, Buyende, Luuka, Namayingo, and Kaliro to adopt chili cultivation. The export milestone is expected to intensify this momentum, attracting new farmers into the value chain while expanding processing capacity in the region.
Value Addition and Agro-Industrialization on the Rise
A major bottleneck for smallholder farmers in Busoga has been the lack of structured value addition. With the new export market opening up, agro-industrial players are expected to scale up drying, grading, and packaging operations.
Chinese Ambassador Zhang Lizhong underscored the significance of the export protocol, highlighting zero-tariff access for Ugandan agricultural products under China’s expanded African preferential trade arrangement.
“The zero-tariff policy is already showing noticeable results,” he noted.
The heightened demand for dried chili is likely to spur the emergence of rural processing hubs, potentially catalyzing investments in solar and mechanical dehydrators, collection centers and warehouses, quality control laboratories and agro-logistics and transport services
Rt. Hon. Rebecca Kadaga used the platform to urge government to accelerate infrastructure improvements such as electricity extension and the establishment of an industrial park in Busoga—both crucial for sustaining chili processing and broader agro-industrial activities.
New Opportunities for Youth and Women Farmers
With chili requiring minimal land and offering attractive returns, the crop presents a strategic opportunity for young people and women—groups that dominate Busoga’s rural labor force.
Dr. Mula Anthony, Director General of the Busoga Consortium, noted that chili farming is becoming a “household transformation strategy.”
“Busoga has the potential to become Uganda’s largest chili-producing hub,” he remarked.
The chili value chain presents numerous entry points for youth, including nursery establishment, field management and spraying services, produce aggregation, digital marketing, agri-extension and farmer training and transport and last-mile logistics.
Given Busoga’s youthful population, the export market could significantly reduce unemployment and underemployment in the region.
Boost to Uganda’s Export Earnings
China’s market is immense, and demand for dried chili—used in pharmaceuticals, cosmetics, food processing, and hot chili condiments—continues to rise. Ambassador Zhang revealed that by August 2025, bilateral trade had reached USD 1.3 billion, with Uganda’s exports doubling to USD 100 million within a year.
With chili now added to fish maw and other exports already entering China, Uganda’s non-traditional export basket is expected to diversify further.
This diversification supports the government’s broader agro-industrialization agenda and reduces Uganda’s dependence on traditional crops such as coffee and tea.
Challenges Ahead
While the milestone is monumental, sustaining chili exports will require addressing key challenges, including strict quality and phytosanitary standards demanded by the Chinese market, stable supply, which depends on consistent farmer training and input access, irrigation solutions to cope with climate variability and affordable financing for smallholder farmers and processors
Failure to meet China’s strict sanitary standards could result in market rejection, highlighting the need for robust extension services and well-coordinated production.
A New Dawn for Busoga’s Agriculture
The flagging off of the first dried chili consignment is more than a ceremonial achievement—it signals the emergence of Busoga as a competitive agricultural production zone. If supported with the right infrastructure, financing, and policy incentives, chili could become the region’s signature high-value crop.
In the broader picture, Uganda now stands better positioned to leverage China’s zero-tariff regime, deepen bilateral trade, and accelerate economic transformation through agriculture.
The milestone may well be remembered as the moment Busoga’s agricultural renaissance began.
