Uganda is set to construct its first climate-resilient market in Elegu, a border town crucial for trade between Uganda and South Sudan. The project, backed by funding from the European Union (EU) and Denmark, will provide space for up to 1,500 traders and incorporate features to withstand extreme weather, particularly flooding, which has long disrupted commerce in the region.
The announcement was made on February 13, 2025, during the Uganda-EU Business Insights Conference in Kampala. The Elegu border point plays a significant role in regional trade, with the Uganda Revenue Authority reporting trade volumes of approximately $220 million with South Sudan in the 2022/2023 financial year.
Addressing Flood Challenges
Elegu has been prone to frequent flooding during the rainy seasons, causing severe disruptions to trade, damaging goods, and delaying essential humanitarian supplies. Surveys indicate that the existing market infrastructure is ill-equipped to handle such environmental challenges, with traders often facing poor sanitation and inadequate water supply, leading to disease outbreaks.
To mitigate these issues, the new market will cover 11 acres and feature:
- A flood-resistant market structure accommodating 1,500 traders
- Solar power and fire protection systems
- Improved waste management and water supply facilities
- Childcare facilities to support women traders, who make up 70% of the market’s vendors
- Enhanced accessibility for people with disabilities
Beyond infrastructure, the project will establish a market management charter, provide training for trader associations, and offer financial and business literacy programs for small and medium-sized enterprises (SMEs). Officials expect the development to ensure year-round trade, improve childcare access for women traders from 10% to 90%, and boost cross-border agricultural trade.
Broader Trade and Economic Impact
The market 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, implemented by TradeMark Africa, aim to enhance Uganda’s trade infrastructure, including:
- Establishing a testing laboratory at the Busia One Stop Border Post (OSBP) to improve export compliance
- Supporting Ugandan agricultural exports in meeting EU deforestation regulations and eco-labeling standards
- Developing two green free zone areas to promote sustainable trade
Additionally, the SSCBTEP will address infrastructure bottlenecks at the Elegu-Nimule border, improving trade efficiency and market access for small-scale traders, particularly women and youth.
Leaders’ Endorsements
Uganda’s Minister of Trade, Industry, and Cooperatives, Hon. Mwebesa Francis, welcomed the initiative, highlighting its role in strengthening Uganda’s trade and economic resilience. “As a main gateway to South Sudan, this modern facility will enhance cross-border trade while addressing the long-standing challenge of flooding,” he stated.
Denmark’s Ambassador to Uganda, H.E. Signe Winding Albjerg, emphasized Denmark’s commitment to empowering women and youth in cross-border trade, noting that the climate-proof market design will reduce disruptions caused by extreme weather events.
EU Ambassador to Uganda, H.E. Jan Sadek, reiterated Team Europe’s dedication to improving trade infrastructure, stating that the project aligns with the Global Gateway Initiative to enhance Uganda-South Sudan trade and provide sustainable livelihoods for traders.
TradeMark Africa CEO, Mr. David Beer, reaffirmed the organization’s mission to support sustainable infrastructure, ensuring that physical improvements translate into tangible benefits for local communities, particularly women traders.
