Uganda’s Tourism Sector Set for Transformation with Over \$8 Million in EU-Backed Investment

Uganda’s tourism landscape is on the brink of a significant transformation as the International Trade Centre (ITC), in collaboration with the European Union through the Global Gateway initiative, has announced a fresh injection of more than USD 8 million into the sector. This four-year programme, developed in partnership with the Sustainable Business for Uganda (SB4U) platform and the Ministry of Tourism, Wildlife and Antiquities, is designed to address persistent financing gaps, strengthen export capacity, and accelerate the growth of green value chains—an increasingly vital focus in today’s global tourism markets.

The new investment is expected to create a ripple effect across Uganda’s tourism industry, with a strong emphasis on job creation, sector performance, and global competitiveness. By targeting both institutional capacity and direct support for tourism-related enterprises, the programme aims to build a more resilient and dynamic sector that can respond to evolving market demands and sustainability imperatives.

Uganda’s private sector has responded enthusiastically to the announcement, viewing the funding as a catalyst for realigning business practices with national tourism policies and scaling up innovation throughout the value chain. The focus on sustainability is particularly timely, as global travellers increasingly seek destinations that demonstrate environmental responsibility and authentic local engagement. This investment will enable Ugandan businesses to adopt sustainable practices, enhance product offerings, and tap into high-value markets, especially in Europe where demand for responsible tourism is on the rise.

Tourism experts have underscored the strategic importance of this initiative. Professor Frederick Thomas, a specialist in Tourism Economics, highlighted Uganda’s comparative advantage in attracting high-value leisure travellers from Europe and beyond. The new funding is seen as a springboard for Uganda to position itself more assertively in these lucrative markets, leveraging its unique wildlife, adventure, and cultural assets to attract top-dollar tourists.

One of the most notable aspects of the programme is its commitment to sector coordination. In the past, Uganda’s tourism development efforts have often been fragmented, with stakeholders and development partners pursuing separate agendas. This new approach will align funding priorities and streamline interventions, ensuring that resources are deployed efficiently and that all players are working towards common goals. Dr. Celestine Katongole, Head of the Tourism Department at Makerere University Business School (MUBS), described the initiative as a turning point that will bring greater coherence and impact to the sector.

Government officials have also welcomed the development, recognising its potential to strengthen the foundations of Uganda’s tourism industry. Denis Ojok, Senior Statistician at the Ministry of Tourism, noted that the financing will support capacity building, expand the tourism value chain, and enhance Uganda’s global competitiveness. These efforts are expected to lay the groundwork for sustained growth and increased foreign exchange earnings, with the government targeting annual tourism revenues of up to \$5.2 billion by 2028.

Tour operators, who play a pivotal role in Uganda’s tourism economy, are poised to benefit significantly from the new investment. Denis Ntege, General Secretary of the Association of Uganda Tour Operators (AUTO), emphasised that the initiative will help operators align their strategies with the national Tourism Development Master Plan and respond more effectively to market trends. This alignment is crucial for ensuring that Uganda’s tourism offerings remain relevant and competitive in a rapidly changing global environment.

The timing of this investment could not be more critical. Uganda is intensifying its efforts to position itself as a premier African destination for wildlife, adventure, and cultural tourism. The country’s natural endowments—from the source of the Nile in Jinja to its renowned national parks—offer immense potential for attracting both regional and international visitors. Recent infrastructure upgrades and the development of new attractions, such as beautified public spaces, cultural centres, and enhanced recreational facilities, are further enhancing Uganda’s appeal.

Beyond infrastructure, the programme’s focus on green value chains and sustainable business models reflects a broader shift in the tourism industry. As travellers become more discerning and environmentally conscious, destinations that prioritise sustainability are likely to capture a larger share of the market. Uganda’s commitment to these principles positions it well to attract eco-conscious tourists and investors seeking long-term value.

The collaborative nature of the Global Gateway initiative is also noteworthy. By bringing together government agencies, private sector players, and international partners, the programme fosters a spirit of shared responsibility and innovation. This approach is expected to yield more impactful results than isolated interventions, creating a virtuous cycle of investment, growth, and reinvestment in the sector.

For Africa’s tourism industry professionals, Uganda’s experience offers valuable lessons. The integration of targeted financing, strategic partnerships, and sustainability-focused development is emerging as a blueprint for success in the region. As competition for international tourists intensifies, destinations that can demonstrate both quality and responsibility will be best positioned to thrive.

Looking ahead, the new investment is set to accelerate Uganda’s ambitions of becoming a globally competitive tourism powerhouse. With renewed collaboration, strengthened financing, and a clear focus on sustainability, Uganda is charting a course that other African destinations may soon follow. The coming years will be pivotal as the sector adapts to new realities, embraces innovation, and leverages its unique strengths to capture a larger share of the global tourism market.