Uganda is set to build its first climate-resilient market at Elegu, backed by funding from the European Union and Denmark. The facility will cater to up to 1,500 traders and is specifically designed to withstand extreme weather disruptions, particularly flooding, which has been a persistent issue in the border town. The announcement of the project was made on February 13, 2025, during the Uganda-EU Business Insights Conference in Kampala.
Elegu, located at Uganda’s border with South Sudan, plays a key role in trade between the two countries. In 2022/2023, trade through Elegu amounted to approximately $220 million, and this figure continues to grow. Despite its economic significance, the region faces severe flooding during the two rainy seasons each year, disrupting trade and causing substantial losses to small-scale traders. Stalls and goods are often swept away in the floods, and inadequate infrastructure, such as sanitation and water facilities, has led to disease outbreaks among the traders.
To address these challenges, the new market will feature flood mitigation measures across an 11-acre site. It will include a climate-resilient building with trading spaces for up to 1,500 traders, solar power, fire protection systems, and improved waste management. Additionally, the market will have enhanced water supply systems. About 70% of the traders in Elegu are women, and the new market will include childcare facilities to support their participation in trade. Accessibility improvements will also be made for people with disabilities.
The project aims to create a year-round, climate-proof market, increase childcare access for women traders from 10% to 90%, and expand cross-border trade in agricultural products. Infrastructure upgrades will also focus on improving market management and providing training to trader associations in financial management and business practices, which will strengthen small and medium-sized enterprises.
This development is part of the Uganda Trade Support (TUTs) Project, funded by DANIDA, and the EU’s Small-Scale Cross-Border Trade Enhancement Programme (SSCBTEP). The TUTs initiative is focused on improving the quality of infrastructure in Uganda, including the establishment of a testing laboratory at the Busia One Stop Border Post and ensuring that Ugandan exports like coffee and cocoa meet the EU’s Deforestation Regulations and eco-labelling standards. The project will also support the creation of two green-free zone areas. TUTs initiatives are expected to be completed by 2027.
The SSCBTEP will enhance trade efficiency and inclusivity along the primary trade route between Uganda and South Sudan, with a focus on the Elegu-Nimule border. The programme aims to address infrastructure bottlenecks, reduce trade delays, and improve market access for small-scale cross-border traders, especially women and youth. It will provide climate-resilient market facilities, as well as financial and digital skills training for traders.
Uganda’s Minister of Trade, Industry, and Cooperatives, Hon. Mwebesa Francis, emphasized that the development of the Elegu Market is a critical step in strengthening Uganda’s trade and economic resilience. He highlighted that the market will enhance cross-border trade while addressing the long-standing issue of flooding that has disrupted business operations and livelihoods. The market aligns with Uganda’s broader development goals, including the Parish Development Model, which aims to transform local economies by improving production, value addition, and market access.
Denmark’s Ambassador to Uganda, H.E. Signe Winding Albjerg, expressed pride in Denmark’s collaboration with the European Union and the Government of Uganda in building the climate-resilient market at Elegu. She noted that the new market would directly support up to 1,500 informal traders, particularly women, youth, and people with disabilities, and will help improve their incomes and livelihoods.
The EU Ambassador to Uganda, H.E. Jan Sadek, also highlighted the importance of the Elegu-Nimule border for trade between Uganda and South Sudan, stating that the project would improve cross-border trade and support income generation for many households, particularly female-headed households.
David Beer, CEO of TradeMark Africa, which is overseeing the project, shared his excitement in leading the development of Uganda’s first climate-resilient market. He emphasized that the initiative aligns with the organization’s commitment to sustainable infrastructure and empowering communities, with a special focus on supporting women traders.
