• Uganda plans to mobilize $83 million to support its struggling tea industry.

• The plan includes factory bailouts, debt repayments, and fertilizer distribution.

• Tea exports fell 22.4% in volume and 33.9% in value between 2021 and 2024.

The Ugandan government plans to mobilize 310 billion shillings (about $83 million) to support the tea sector, which faces a prolonged crisis. Fred Bwino Kyakulaga announced the plan on April 11 during a meeting with industry stakeholders.

Local media outlet The Independent reported that the intervention forms part of a broader restructuring program. The government will introduce new laws and guidelines to improve sector oversight.

The government structured the support plan around three main pillars. Authorities will allocate 152 billion shillings ($40.6 million) to rescue struggling processing factories. They will also settle 112 billion shillings ($29.9 million) in debts owed to tea seedling suppliers. In addition, they will distribute fertilizers to farmers to boost yields.

“Although the current fiscal year budget did not initially provide for the full program, authorities have already released an initial allocation of 8 billion shillings [$2.1 million] to begin fertilizer distribution. Full funding is expected in the 2026/2027 fiscal year,” the minister said.

The initiative follows a decline in Uganda’s tea sector performance in recent years. Data compiled on Trade Map show that Uganda reduced tea export volumes by 22.4% over four years, falling from 77,104 tonnes in 2021 to 59,860 tonnes in 2024.

At the same time, export revenues dropped by 33.9% to $56.1 million over the same period. This sharper decline in value indicates pricing pressure on international markets.

Although Uganda ranks as Africa’s second-largest tea exporter by volume after Kenya, it generates lower export value than Malawi and Rwanda. This gap suggests weaker value addition or lower perceived quality compared with its regional peers.

Beyond financial constraints, the Uganda Tea Association identified several structural challenges that limit sector competitiveness. The industry faces labor shortages in factories, low mechanization levels, and the processing of low-quality green leaves.

“We also need dedicated extension workers for tea, more financing for factories, and strict enforcement of quality standards from the harvesting stage,” said Victoria Ashabahebwa.

Stéphanas Assocle