EU Launches €15.5 Million Initiative to Boost Uganda's Tourism Sector

A significant new initiative, backed by the European Union, has been launched to invigorate Uganda’s tourism industry and spur investment. The €15.5 million (approximately Shs62 billion) Sustainable Tourism Value Chain Initiative, slated to run from 2026 to 2030, is a collaborative effort involving the EU, Belgium’s Enabel, the UN Capital Development Fund (UNCDF), UNESCO, and the United Nations Development Programme (UNDP).

The program aims to tackle deep-rooted challenges that have historically hindered investment and growth within Uganda’s tourism ecosystem. A key focus will be on supporting Micro, Small, and Medium Enterprises (MSMEs), which often face difficulties accessing finance, grapple with high borrowing costs, and lack adequate support for investment readiness.

Doreen Silver Katusiime, Permanent Secretary at the Ministry of Tourism, Wildlife and Antiquities, expressed the government’s commitment to leveraging tourism as a driver for job creation and economic development. The initiative seeks to foster a more coordinated, globally competitive sector by enhancing standards, building partnerships, and developing high-quality tourism experiences that benefit local communities.

Ambassador Jan Sadek of the European Union highlighted the initiative’s alignment with the EU’s broader goals for sustainable development and private sector growth in Uganda. He noted the EU’s ongoing support for heritage promotion, conservation, skills development, and community-based tourism, recognizing the potential of Uganda’s nature-based attractions to boost exports and earn foreign exchange.

The initiative will provide expanded access to finance for tourism MSMEs through blended finance instruments and tailored products, with UNCDF playing a crucial role in reducing lending risks and increasing affordable financing, especially for women and youth-led businesses. UNDP will concentrate on improving the policy and regulatory environment, while Enabel and UNESCO will work on strengthening value chains and positioning Uganda as a premier sustainable tourism destination.

This project signifies a move towards integrated development, combining destination competitiveness, financing, policy reform, and sustainability to create a pipeline of investable tourism opportunities and strengthen Uganda’s global standing in responsible travel. https://www.monitor.co.ug/uganda/news/national/eu-backed-15-5-million-initiative-to-unlock-investment-in-uganda-s-tourism-sector-5498956