Uganda will construct its first climate-resilient market at the Elegu border crossing with South Sudan, backed by funding from the European Union (EU) and Denmark, officials announced on during the Uganda-EU Business Insights Conference in Kampala.

The $220 million-a-year trade corridor, vital for Uganda’s exports to South Sudan, has faced repeated disruptions from flooding during biannual rainy seasons, damaging stalls, submerging goods, and delaying humanitarian cargo.

The new facility, spanning 11 acres, will accommodate 1,500 traders and integrate flood mitigation systems, solar power, childcare spaces, and disability-friendly infrastructure.

Elegu serves as a key transit point for Ugandan goods, including coffee and cocoa, with trade volumes steadily rising, according to the Uganda Revenue Authority.

However, inadequate drainage and market infrastructure have compounded losses for small-scale traders, 70% of whom are women, as highlighted in a Global Report Journal analysis.

The project, part of Denmark’s Uganda Trade Support (TUTs) initiative and the EU’s Small-Scale Cross-Border Trade Enhancement Programme (SSCBTEP), includes climate-proof construction, fire protection, waste management upgrades, and training for traders.

TUTs will also establish a testing laboratory at Busia border post and two green free zones by 2027, while SSCBTEP aims to streamline trade processes along the Elegu-Nimule corridor.

“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,” Uganda’s Trade Minister Mwebesa Francis, said.

Denmark’s Ambassador to Uganda, Signe Winding Albjerg, emphasized the project’s focus on supporting women and youth traders, noting the climate-resilient design would curb flood-related disruptions.

EU Ambassador Jan Sadek said the initiative under the Global Gateway strategy would enhance livelihoods and bilateral trade.

TradeMark Africa, overseeing construction, aims to pair infrastructure upgrades with community empowerment according to CEO David Beer.  The project is slated for completion in 2027.