Cold storage facility to spur exports of produce

The government has commissioned the construction of a perishable cargo handling centre at Entebbe airport that it says will improve the quality of fresh produce exports.

The $10 million (about Shs37.8 billion) solar-powered hi-tech facility is expected to pre-test fresh produce such as flowers, tomatoes, cucumber, and green peppers to ensure they are free of pests and diseases and meet export standards.

The State Minister for Trade, Mr David Bahati, while speaking at the commissioning of the construction works on November 17 said the cold storage facility will be a game changer for Uganda’s horticulture sector.

“As we speak, our export value stands at $5.4 billion and our import value stands at $7 billion. So as a country, we have a trade deficit. And one of the reasons why we can’t export more has been lack of facilities like these,” he said.

Statistics indicate that Uganda’s horticulture exports are worth about $35 million per year, making Uganda the second-largest producer of fresh fruits and vegetables in Sub-Saharan Africa, after Nigeria. However, only about 20 percent of horticultural production is exported.

“Horticulture plays an important role in the economic landscape of our country. It stands as the fourth most important export sector, trading only behind coffee, fish and fish products, and dairy. This is a remarkable achievement, especially considering the challenge that the sector has faced, including issues related to post-harvest handling and cold storage,” Mr Bahati, who represented the Prime Minister, Ms Robinah Nabbanja, said.

Location
The government provided a two-acre land near Entebbe International Airport for the facility, which being funded by the Agriculture Business Initiative (aBi) through the Danish Royal Government and the European Union. All fresh produce destined for export will be subjected to tests at the facility to ensure they meet international phytosanitary standards

Former Trade minister and board member of the Fresh Handling Facility Amelia Kyambadde said they have acquired state-of-the-art machinery to ensure all the goods tested there meet international export standards.

“So once this facility is established, we will ensure that all our goods are up to standard; the flowers, the vegetables, and the fruits. First of all, due to the proximity to the cargo handling because also logistical chain has also been a problem. But also digitalization that we anticipate to have when we have this project,” she said.

Agro exports
Danish Ambassador Signe Winding Albjerg said the facility is expected to enhance Uganda’s agro exports, and job creation across the value chain. 

She said the facility’s use of renewable energy aligns with Uganda’s strategic location in the East African Community.

Mr Daniel Kiryango, the chairman of the board of directors for Fresh Handling Limited, said the facility will have a capacity of 30,000 metric tonnes per year and will be powered by solar energy, making it environmentally friendly and cost-effective.

“The facility will also create direct and indirect employment opportunities for over 30,000 people, mostly young women, and will boost the export potential of the horticulture sector from the current $49 million to $150 million per year,’’ he said.

Mr Paul Mwambu, the commissioner for crop inspection and certification at the Ministry of Agriculture, said the centre will help them in their quest to maintain phytosanitary standards, which are essential for international trade.

Mr Felix Okoboi from aBi Development Ltd, who are funding the project, said: “So we hope to increase our fresh produce exports from Uganda. And to do that you need good quality facilities and that has been lacking in the last 20 years.” 

Significance. 
“Horticulture plays an important role in the economic landscape of our country. It stands as the fourth most important export sector, trading only behind coffee, fish and fish products, and dairy.

This is a remarkable achievement, especially considering the challenge that the sector has faced, including issues related to post-harvest handling and cold storage,” Mr David Bahati, the State Minister for Trade

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Sub Editor: Tonny Musani