Uganda is set to establish its first climate-resilient market in Elegu, a key border town with South Sudan, thanks to funding from the European Union (EU) and Denmark. This initiative aims to support up to 1,500 traders, predominantly small-scale cross-border merchants, by developing infrastructure that can withstand extreme weather conditions, particularly flooding. The project was officially announced on February 13, 2025, during the Uganda-EU Business Insights Conference in Kampala.
Elegu plays a crucial role in Uganda’s trade with its neighboring country, South Sudan. According to the Uganda Revenue Authority, trade through Elegu was valued at approximately $220 million during the 2022/2023 financial year, and the figures continue to grow. However, persistent flooding during Uganda’s two annual rainy seasons has severely disrupted economic activity. Market stalls are often swept away, and traders suffer significant losses due to water damage to their goods. Reports indicate that the existing infrastructure lacks resilience against such climate challenges, and poor sanitation has contributed to recurring disease outbreaks in the market area.
The new market will cover an 11-acre area and incorporate flood mitigation measures to ensure uninterrupted trade. The facility will include:
- A climate-resilient market building with trading spaces for 1,500 traders
- Solar power to provide sustainable energy
- Fire protection systems for safety
- Improved waste management and sanitation facilities
- Reliable water supply systems
- Childcare facilities to support the participation of women in trade
- Accessibility features for people with disabilities
Given that around 70% of Elegu’s traders are women, the inclusion of childcare services is a significant step toward gender inclusivity in trade. The market is expected to increase childcare accessibility for women traders from the current 10% to an estimated 90%, enabling them to focus on their businesses while ensuring their children’s well-being.
The project is part of The Uganda Trade Support (TUTs) Project, funded by Denmark’s DANIDA, and the EU’s Small-Scale Cross-Border Trade Enhancement Programme (SSCBTEP) along Corridor 11. These initiatives aim to enhance Uganda’s trade infrastructure and improve the livelihoods of traders, particularly women and youth.
TUTs is focused on:
- Establishing a testing laboratory at the Busia One Stop Border Post (OSBP)
- Ensuring Ugandan exports, such as coffee and cocoa, comply with EU regulations on deforestation and eco-labeling
- Creating two green free zones to promote sustainable trade
Meanwhile, the SSCBTEP will improve trade efficiency along the Elegu-Nimule corridor by addressing infrastructure bottlenecks, reducing trade delays, and increasing market access for small-scale traders. It also includes financial and digital skills training to help traders adapt to modern business environments.
Uganda’s Minister of Trade, Industry, and Cooperatives, Hon. Mwebesa Francis, welcomed the project, stating that it aligns with Uganda’s development agenda by strengthening economic resilience and improving trade facilitation. He emphasized that Elegu’s strategic position as a gateway to South Sudan makes this investment critical in addressing long-standing flooding issues that have impacted businesses and livelihoods.
Denmark’s Ambassador to Uganda, H.E. Signe Winding Albjerg, highlighted the transformative impact of the project, particularly for informal traders, women, and youth. She noted that the climate-proof design would protect businesses from weather-related disruptions, ensuring stable trade and increased incomes.
EU Ambassador to Uganda, H.E. Jan Sadek, reaffirmed the EU’s commitment to boosting small-scale cross-border trade through its Global Gateway Initiative. He emphasized that improving both soft and hard infrastructure at the Elegu-Nimule border would not only strengthen Uganda-South Sudan trade ties but also support income generation for vulnerable households, most of which are female-headed.
TradeMark Africa, the organization overseeing the project, is committed to ensuring that the market’s development goes beyond physical infrastructure by empowering local communities. CEO David Beer stated that the project would complement ongoing enhancements at the One Stop Border Posts on both sides of the border.
The climate-resilient market at Elegu is expected to transform cross-border trade by offering a stable, all-weather trading environment. The improved infrastructure will:
- Reduce financial losses due to flooding
- Provide better market access for small-scale traders
- Increase income opportunities for women and youth
- Enhance sanitation and reduce health risks for traders and customers
With an anticipated completion date set for 2027, this development marks a significant milestone in Uganda’s efforts to strengthen trade resilience and foster inclusive economic growth. The collaboration between Uganda, the EU, Denmark, and TradeMark Africa demonstrates the power of international partnerships in driving sustainable development and climate adaptation in Africa.
