Uganda is set to build its first climate-resilient market at Elegu, backed by funding from the European Union and Denmark. The facility will host up to 1,500 traders and will be designed to endure extreme weather disruptions, particularly flooding, which has long plagued the border town. The announcement was made on 13 February 2025 during the Uganda-EU Business Insights Conference in Kampala, Uganda.
Situated at Uganda’s crossing point with South Sudan, Elegu facilitates trade worth millions of dollars between Uganda and its neighbours; in 2022/2023 for example, trade through Elegu was approximately $220 million with South Sudan, with these figures continuing to grow according to the Uganda Revenue Authority. However, the area is hit by floods during the two rainy seasons each year, delaying the movement of goods, including humanitarian cargo, sweeping away stalls and submerging goods in the market, thereby causing immeasurable losses to small scale cross border traders, as reported in this Global Report Journal. Various survey reports indicate that market infrastructure is poorly equipped to cope with such extreme weather events, and traders have repeatedly protested over inadequate sanitation and water facilities, which have led to disease outbreaks.
The development will include flood mitigation measures spanning 11 acres, a new climate resilient market building with trading spaces for up to 1,500 traders, solar power, fire protection systems, and improved waste management, including water supply systems. About 70% of traders in Elegu are women, and the market will incorporate childcare facilities to support their participation in trade. Infrastructure upgrades will also improve accessibility for people with disabilities.
Beyond physical upgrades, the project includes development of a market management charter, training of trader associations on market management, financial and business training for traders, to strengthen small and medium-sized enterprises. Officials expect the improvements to provide an all year, all-weather, climate proof market, increase childcare access for women traders from 10% to 90%, and expand cross-border trade in agricultural products.
The market is part of The Uganda Trade Support (TUTs) Project funded by DANIDA; and the EU’s Small Scale Cross-Border Trade Enhancement Programme (SSCBTEP) along Corridor 11, two initiatives being facilitated by partners including TradeMark Africa.
TUTs targets the enhancement of Uganda’s quality infrastructure through establishing a testing laboratory at Busia One Stop Border Post (OSBP) and improving the compliance of Ugandan exports such as coffee and cocoa with the EU’s Deforestation Regulations and eco-labelling. In addition, TUTs will support the creation of two green free zone areas. TUTs initiatives are expected to be completed by 2027.
The SSCBTEP will enhance trade efficiency and inclusivity along the main trade route linking Uganda and South Sudan. Focused on the Elegu-Nimule border, it will tackle infrastructure bottlenecks, cut trade delays, and boost market access for small-scale cross-border traders, especially women and youth. Interventions include climate-resilient market facilities, and financial and digital skills training.
Following the announcement of the funding, Uganda Minister of Trade, Industry and Cooperatives, Hon. Mwebesa Francis said: “The development of the Elegu Market is a major step in strengthening Uganda’s trade and economic resilience. As a main gateway to South Sudan, which is one of our largest export markets, this modern facility will enhance cross-border trade while addressing the long-standing challenge of flooding that has disrupted businesses and livelihoods. The market aligns with Uganda’s
development goals, such as the Parish Development Model, which focuses on transforming local economies by enhancing production, value addition, and market access. We thank our development partners for their invaluable support in making this market a reality.”
Denmark Ambassador H.E. Signe Winding Albjerg said: “Denmark is proud to join the European Union and the Government of Uganda in building a climate-resilient market at the Uganda-South Sudan border. It is a strategic border point that serves the entire East African Community. Elegu market will directly support up to 1,500 informal traders, majorly women, youth, and people with disabilities, who will increase their incomes and livelihoods. The new market will not only benefit local businesses, but it will also strengthen Uganda’s trade position with South Sudan. Furthermore, the climate-proof design will enhance the resilience of businesses to regional climate events like floods and extreme temperatures. This means fewer disruptions and more stable trade. We are pleased to launch this Global Gateway project as part of Team Europe.”
On his part, EU Ambassador to Uganda H.E. Jan Sadek said, “We are honoured to join our Member State Denmark in this Team Europe action to boost small-scale cross-border trade at the Uganda – South Sudan border. South Sudan is an important trading partner for Uganda and Team Europe is happy to provide support in both soft and hard infrastructure at the Elegu-Nimule border under our Global Gateway Initiative. The project will not only improve cross-border trade between Uganda and South Sudan but also support income generation for many poor households, the majority of which are female headed.”
Speaking on behalf of TradeMark Africa, which is overseeing the project, CEO Mr David Beer said, “We are delighted to lead the development of Uganda’s first climate-resilient market, an initiative that reinforces our commitment to sustainable infrastructure, and complements our ongoing enhancements at the One Stop Border Posts on both sides of the border. We aim to ensure that physical infrastructure developments are paired with targeted improvements in the lives of the communities we support, with a particular focus on empowering women.”