The initiative aims to strengthen sustainable tourism, expand access to finance and position Uganda as a globally competitive destination.

UN Resident Coordinator Leonard Zulu; UNCDF Regional-based Investment Specialist, Olawale (Wale) Ajayi; Doreen Silver Katusiime, Permanent Secretary, Ministry of Tourism, Wildlife and Antiquities; H.E. Jan Sadek, Ambassador of the European Union to Uganda; Nicolas Oebel, Country Director, Enabel; Nwanne Vwede-Obahor, UNDP Resident Representative & Louise Haxthausen, UNESCO Regional Director for Eastern Africa. Courtesy photo.

The Government of Uganda has welcomed a new multi-partner initiative to unlock investment in the East African country’s growing tourism sector and create opportunities for small businesses with the potential to create jobs, grow the private sector and provide an inclusive economic boost for the country.

The €15.5 million Sustainable Tourism Value Chain Initiative (2026–2030) is funded by the European Union and implemented by the Belgian agency for international cooperation Enabel, the United Nations Capital Development Fund (UNCDF), the United Nations Educational, Scientific and Cultural Organization (UNESCO), and the United Nations Development Programme (UNDP).

The initiative seeks to address key structural barriers that continue to limit investment and growth across Uganda’s tourism ecosystem, particularly for micro, small and medium enterprises (MSMEs), which remain constrained by limited access to finance, high borrowing costs, fragmented value chains and inadequate investment readiness support.

“Uganda is taking deliberate steps to unlock the full potential of tourism as a driver of jobs, investment and inclusive growth,” said Mrs. Doreen Silver Katusiime, Permanent Secretary at the Ministry of Tourism, Wildlife and Antiquities. “Our focus is on building a more coordinated, investment-ready and globally competitive sector by improving standards, strengthening partnerships and supporting the development of world-class tourism experiences that create lasting value for communities and the economy.”

The European Union said the initiative reflects its broader commitment to sustainable development, green growth and private sector development in Uganda.

“The European Union sees tourism not only as an economic sector, but also as a tool for sustainable development,” said H.E. Jan Sadek, Ambassador of the European Union to Uganda. “Over the years, EU support has contributed to heritage promotion, conservation, skills development and community-based tourism initiatives. We have seen encouraging progress in tourism infrastructure, the strengthening of local value chains and a growing recognition of the importance of sustainability in tourism planning and investment.”

Uganda’s tourism sector, especially its nature-based attractions, holds enormous potential to drive exports, earn foreign exchange, create jobs, strengthen rural livelihoods and support inclusive economic development. The investment initiative follows a 2025 government report that showed international tourism receipts topped US$ 1.2 billion in 2024, accounting for 16% of total exports. Without targeted support, small and locally based operators risk being left behind, particularly in the absence of stronger coordination, increased investment and improved infrastructure.

The initiative seeks to help smaller operators become more competitive in an inclusive and investable tourism ecosystem by improving tourism promotion and market access, leveraging digital platforms, and strengthening tourism value chains and community linkages. The expanded access to finance for tourism MSMEs, and investment in standards, skills development and workforce training aims to enhance competitiveness, sustainability and Uganda’s global tourism positioning.

Access to finance remains central to the initiative. UNCDF will strengthen access to finance for tourism MSMEs through blended finance instruments, tailored financial products and investment readiness support designed to unlock investment and crowd in private capital for sustainable tourism enterprises. Through partnerships with financial institutions, UNCDF will help reduce the risks associated with lending to tourism businesses and expand access to affordable financing, particularly for women and youth-led enterprises.

UNDP will focus on strengthening the enabling environment through support to government policies, strategies and regulatory frameworks aimed at improving the business climate for enterprise growth and investment.

“UNDP and UNCDF are proud to walk alongside the Government of Uganda and all our partners in building a tourism sector that is not only economically powerful, but environmentally sustainable and socially inclusive. The work we are doing today, reforming policies, strengthening coordination, unlocking investment for tourism MSMEs and expanding access to innovative financing solutions, is supporting the foundation for a sector that will deliver dividends for generations,” said Ms Nwanne Vwede-Obahor, UNDP Resident Representative in Uganda, and representing UNCDF in the country.

Enabel and UNESCO will complement these efforts by strengthening tourism value chains and Uganda’s positioning as a prime and sustainable tourism destination.

“When tourism is built around culture, nature, and people, it creates real opportunities for jobs for young people, stronger communities, and lasting economic value. Through this initiative, UNESCO is proud to support a tourism model for Uganda that protects its heritage, benefits local communities and attracts responsible investment, making sustainability a true source of competitiveness,” said Ms Louise Haxthausen, UNESCO Regional Director for Eastern Africa.

“Tourism has the potential to be one of Uganda’s strongest drivers of inclusive and sustainable growth, positioning the country as a leading destination for responsible travel while ensuring that communities are at the heart of its success. Our ambition is to unlock tourism’s full potential as a catalyst for local economic transformation by connecting communities, enterprises and destinations to opportunities that create jobs, strengthen resilience and support shared prosperity,” said Mr. Nicolas Oebel, Country Director, Enabel.

This initiative reflects a broader shift toward integrated development approaches that combine destination competitiveness, financing, policy reform, enterprise development and sustainability to unlock private investment and build a pipeline of investable tourism opportunities across Uganda.

By aligning national priorities with coordinated international support, the initiative aims to lay the foundation for a tourism sector that is competitive, inclusive, resilient and globally investable.