In a landmark move to boost regional trade and support vulnerable communities, Uganda has broken ground on its first climate-resilient and gender-responsive cross-border market in Elegu.
The new €9.9M (Shs 41B) facility is designed to address the persistent challenges of inadequate infrastructure, poor sanitation, and cyclical flooding that have long plagued traders in this important commercial hub in Northern Uganda.
Elegu, a key trade hub on the border between Uganda and South Sudan, has grown significantly, becoming one of Uganda’s most important exit points for informal exports. Trade through the Elegu–Nimule corridor more than doubled from $50.38 million in 2018 to $111.3 million in 2022, making South Sudan Uganda’s third-largest informal trade partner. In 2022 alone, an estimated 1.35 million metric tons of goods, primarily agricultural produce and livestock, passed through the market.
Despite its economic importance, the Elegu market faces severe challenges. The area is prone to flooding during two annual rainy seasons, which frequently sweeps away stalls, damages goods, and causes significant financial losses for traders. The existing infrastructure is ill-equipped for these events and lacks proper sanitation, leading to disease outbreaks. Additionally, there is no effective waste management system, which compromises the quality of goods and the overall trading environment.
The market’s vulnerabilities are particularly hard on women, who make up 63% of the informal traders, and on people with disabilities (PWDs). Women often face unique challenges, including childcare responsibilities and greater exposure to climate-related disruptions. For PWDs, inaccessible infrastructure prevents them from fully participating in trade.
To address these issues, the Elegu Climate-Resilient Cross-Border Market Project was launched.
As the first of its kind in Uganda, this initiative aims to enhance trade, promote economic growth, and build resilience against climate change. By empowering vulnerable groups—especially women, youth, and PWDs—the project is designed to improve household incomes, attract new investments, and strengthen Uganda’s crucial regional trade routes.
This ambitious project is a joint initiative funded by the European Union and Denmark under the Global Gateway strategy, a Team Europe initiative. It is being implemented by TradeMark Africa in close partnership with the Government of Uganda and is expected to directly improve the livelihoods of over 5,000 households reliant on cross-border trade.
During her keynote address, the Rt. Hon. 1st Deputy Prime Minister, Rebecca Kadaga, highlighted the project’s transformative potential.
“This project is a symbol of resilience, inclusion, and transformation,” she said.
“This partnership with European Union and the Embassy of Denmark, under 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 meets the realities of climate change while supporting our national and regional trade goals.”
The new market is engineered with durability and inclusivity at its core. The entire site will be elevated to sit above typical flood levels, with reinforced drainage, permeable paving, and stormwater retention basins to ensure uninterrupted year-round trading. The infrastructure will also integrate green energy solutions, including solar power and rainwater harvesting systems.
The planned facilities are comprehensive and designed to support all traders. They include 1,500 vendor sheds, a restaurant, and a much-needed daycare center to alleviate the burden of childcare on women. Modern sanitation blocks, an on-site banking facility offering affordable credit, and a grain handling and post-harvest storage facility will also be part of the new market. To improve logistics, a new 450-meter access road will connect the market directly to the Gulu–Atiak–Nimule highway, complete with clearly demarcated loading bays and parking zones.
These improvements are projected to increase the active participation of women and PWDs by 30% and boost women’s daily income by an estimated 15–25%.
The local community’s appreciation was voiced by Micheal Lakony, the LC V at Amuru District.
“For years, our traders have suffered the consequences of inadequate infrastructure, with markets washed away by floods and children falling sick due to poor sanitation,” he said.
“Today’s groundbreaking is a commitment to change. It is a promise that no trader, especially our women and youth, will have to choose between safety and survival.”
The international partners also emphasized the project’s strategic importance. Sanne Willems, EU Delegation to Uganda, Head of Green Transition and Private Sector, stated: “This initiative is part of our broader Global Gateway strategy, and it shows how climate adaptation, gender inclusion, and trade development can go hand in hand”.
“We are proud to support Uganda in creating a border economy that is strong, fair, and climate- proof.”
The Ambassador of Denmark to Uganda, Signe Winding Albjerg, added: “This market is designed to promote inclusive and climate-resilient infrastructure for cross border traders”.
We hope it will turn into an inspiration for others in the region. By putting climate resilience and those who are often left behind, like women, youth and persons with disabilities at the forefront, the project reflects Denmark’s commitment to green and inclusive growth and employment in Uganda.”
Allen Asiimwe, Deputy CEO at TradeMark Africa, reinforced the organization’s mission, stating: “This market is an investment that embodies our core mission which is to increase sustainable and inclusive intra-African trade and exports to the rest of the world”.
“We are not only building physical infrastructure but enabling economic opportunity and dignity for thousands of informal traders, particularly women and vulnerable groups.”
The ceremony, held in Elegu Town Council, brought together dignitaries from the European Union, the Royal Danish Embassy, TradeMark Africa, and local government officials, all of whom celebrated a shared vision for a more prosperous, resilient, and inclusive future for the region.
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