Last week, the government of Uganda, in partnership with development partners, launched the construction of a Shs 41 billion (EUR 10.1 million) climate resilient cross border market in Elegu.
The initiative aims to boost trade, foster economic growth, and promote gender equality and climate resilience between Uganda and South Sudan. Elegu, Uganda’s key crossing into South Sudan, has become one of the country’s leading exit points for informal exports.
Trade through the corridor has grown significantly from $50.38 million (Shs 1.7 trillion) in 2018 to $111.3 million (Shs 3.9 trillion) in 2022. In that year alone, 1.35 million metric tonnes of goods valued at $220 million passed through Elegu, driven primarily by agricultural produce, livestock, and manufactured goods. Informal exports to South Sudan more than doubled over five years, making it Uganda’s third largest informal trade partner.
This underscores the strategic importance and resilience of the Elegu–Nimule trade corridor. The new market will be constructed on an 11.45-acre site in Elegu Town Council, Amuru district, adjacent to the Gulu–Nimule highway.
It is funded by the Royal Danish Embassy in Kampala and the European Union (EU) Delegation to Uganda, under the Team Europe initiative. However, the Elegu area is prone to severe flooding during the two annual rainy seasons.
These floods frequently disrupt the movement of goods, including humanitarian cargo, damage market stalls, and submerge traders’ merchandise, causing devastating losses, particularly for small scale cross border traders. Currently, the market infrastructure is ill equipped to handle such extreme weather events.
Traders have consistently raised concerns over poor sanitation, inadequate access to clean water, and the absence of a waste management system all of which contribute to health hazards and reduced standards for traded goods.
Women constitute 63 per cent of informal traders at the Elegu border market, dealing in agricultural produce, meats, vegetables, and other essential goods. The project specifically aims to address the challenges these women face, including limited access to proper market facilities, childcare responsibilities, and increased vulnerability to climate-related disruptions.
Additionally, about 40 per cent of persons with disabilities (PWDs) in Elegu are unable to fully engage in trade due to inaccessible infrastructure. The Elegu Climate Resilient Cross Border Market Project is designed to tackle the adverse effects of climate change while empowering vulnerable groups particularly women, youths, and PWDs within the informal cross border trade sector.
“For a country like Uganda, where South Sudan is one of its major export destinations with $99.9 million in informal trade exports, this market is a quick win for cross-border trade, especially for women traders,” Sanne Willems, the head of Green Transition and Private Sector, European Union in Uganda, said.
“While we acknowledge that it has taken a long time and tremendous effort to mitigate this non-tariff trade barrier, this is the easy part of realizing the market. The harder and more important part is its successful operation and maintenance,” Willems added.
“When we give women and persons with disabilities safe spaces to trade, we are not just building infrastructure, we are unlocking human potential and lifting entire communities. Behind every stall in Elegu is a family depending on trade for food, school fees, and dignity. This market is an investment in their future,” she said.
First Deputy Prime Minister Rebecca Kadaga said the project is a symbol of resilience, inclusion, and transformation. This partnership with the European Union and the Embassy of Denmark, under the Global Gateway and TradeMark Africa, demonstrates what can be achieved when development is both collaborative and visionary.
“Uganda is proud to lead the way with a border market that acknowledges the realities of climate change while supporting our national and regional trade goals,” she said.
State minister for Trade Gen. Wilson Mbadi said the market is more than bricks and mortar; it is a lifeline for women, youths, and small traders.
“It provides them with the space, tools, and confidence to grow their businesses and transform their lives. By trading together, we are not only exchanging goods, but also building bridges of peace, trust, and shared prosperity across our borders,” he said.