Iran Chamber Research Center Identifies Six Key Opportunities in Uganda

TEHRAN (Iran News) The report, titled “Examining and Identifying Iran’s Export Opportunities in Uganda,” was prepared to provide a roadmap for Iran’s commercial and investment presence in East Africa. It emphasizes Uganda’s strategic position in the heart of the region, bordering major markets such as Kenya, Tanzania, South Sudan, and the Democratic Republic of Congo. Despite being landlocked, Uganda has access to the ports of Mombasa and Dar es Salaam through northern and central transport corridors. Its membership in regional economic organizations—including the East African Community (EAC), COMESA, and the African Continental Free Trade Area (AfCFTA)—further strengthens its role as a gateway to a market of over 600 million people.

The report notes Uganda’s rapid economic expansion in recent years. GDP growth rose from 3% in 2020 to over 6% in 2024, with forecasts projecting growth above 10% once oil production begins in the coming years. Low inflation, relative currency stability, and fiscal reforms have created an attractive environment for investment. Uganda’s economy is driven by services (42% of GDP), agriculture (26%), and industry (32%).

The Iran Chamber Research Center identifies six priority areas for trade and investment:

Agriculture and Overseas Farming – Fertile land, abundant water resources, and low labor costs make Uganda ideal for cultivating strategic crops such as grains, oilseeds, corn, sugar, and animal feed. Iran could leverage this potential through overseas farming and agricultural technology exports.

Pharmaceuticals and Medical Equipment – With high dependence on imports, Uganda presents strong opportunities for Iranian pharmaceutical products, medical equipment, hospital supplies, and joint healthcare investments.

Engineering Services and Infrastructure – Uganda’s ongoing road, energy, and refinery projects provide scope for Iranian engineering, construction machinery, and technical services.

Energy and Oil – Uganda’s vast oil and gas reserves require advanced technology for extraction, refining, and energy transmission—fields where Iran can collaborate. Potential areas include electricity equipment exports, solar energy projects, and refinery construction.

Food Processing Industries – Investment in processing coffee, tea, tropical fruits, vegetables, and fish would add value to Uganda’s agricultural exports and integrate Iran into East Africa’s food value chain.

Construction Materials and Services – Rapid urbanization and infrastructure development in Uganda have increased demand for cement, steel, tiles, ceramics, and building services, which Iran is well-positioned to supply.

The report also warns that Iran faces several challenges in Uganda’s market, including high transport costs, lack of direct banking channels due to sanctions, competition from China and India, and limited awareness among Ugandan traders about Iran’s capabilities.

To address these obstacles, it recommends solutions such as barter trade, strengthening economic diplomacy, active participation in East African trade fairs, and establishing joint marketing and representative offices.

The Research Center suggests that the Iran Chamber of Commerce take the following steps to improve trade relations with Uganda:

Establish a joint Iran–Uganda committee within the Chamber to identify opportunities and support traders.

Create export consortia in pharmaceuticals, agriculture, and engineering services to enter Uganda’s market in a more coordinated way.

Organize targeted trade delegations and host Ugandan business missions to showcase Iran’s capabilities.

Invest in logistics and warehousing centers in Uganda or neighboring countries to facilitate distribution.