Sweden backs Uganda’s dairy & tourism sectors with US$5M investment

UGANDA – Uganda’s tourism and dairy sectors have received a significant boost after the government of Sweden signed the Trade for Jobs Uganda project worth Shs18b (US$5 million).

The five-year project seeks to strengthen regional and global trade in dairy and tourism services and to support private-sector development.

This will be achieved through value addition, diversification, and collaboration with Swedish companies to leverage their expertise.

The funding was unveiled at the International Labour Organisation (ILO) offices in Kampala and comes at a time when current regulations in the dairy sector cover only the sale and marketing of processed dairy products, leaving out raw milk and other dairy inputs.

The tourism sector also aims to address long-standing gaps that have hindered its growth, as outlined in the National Tourism Policy.

According to the 2024 value-for-money audit report on the regulation of Uganda’s dairy industry by the Dairy Development Authority, national milk consumption increased from 46 litres per person in 2020/2021 to 64 litres in 2022/2023.

However, this remains far below the 200 litres per person recommended by the World Health Organisation.

ILO East Africa Country Director Caroline Mugalla Khamati said the new partnerships will support the creation of decent employment opportunities for young people participating in trade.

“For many years, Uganda has been involved in trade, but to what extent has it provided jobs? We will be measuring the jobs created as well as the quality of those jobs, especially for vulnerable communities, women, and young people,” Ms Khamati said.

She added that the project will adopt a market-systems approach across the entire value chain to improve interventions and policies in both the tourism and dairy sectors.

Sweden’s Ambassador to Uganda Maria Hakansson, said the investment reflects Sweden’s commitment to protecting and empowering young people through the private sector.

“We see a huge potential in Uganda’s private sector and trade, but there are challenges, including unemployment. We hope that this support can strengthen the tourism and dairy value chains to create decent jobs, increase competitiveness, and improve access to other markets,” Ms Hakansson said.

She emphasised that for the tourism sector to thrive, more skilling is needed at all levels, supported by better marketing systems and improved infrastructure at tourism destinations.

She reaffirmed Sweden’s long-standing partnership with Uganda and commitment to strengthening protection systems for vulnerable young people.

Mr Donald Byamugisha, a trade expert at the International Trade Centre (ITC), said improving the tourism sector requires skilling employees, diversifying markets to enhance private-sector competitiveness, and ensuring coordination across all sectors.

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