Uganda is seeking to rebuild its cotton industry through renewed investment in farming, seed development and textile manufacturing, as Greek industrial company EMKAT S.A. explores opportunities in the country’s struggling sector.

The potential investment comes as cotton production has fallen by more than half in two years, raising concerns about the supply of raw materials for domestic textile manufacturers and the livelihoods of smallholder farmers.

EMKAT Chairman Petros Gialamas discussed possible cooperation with Deputy Speaker Thomas Tayebwa and Uganda’s honorary consul in Greece, Vasiliki Alexandraki, during a meeting at Parliament on November 3. The company has not disclosed the size or scope of any proposed investment.

Cotton production falls as farmers face rising costs

Uganda’s cotton output declined from 115,975 bales of 185 kilograms each in the 2022/2023 season to 54,883 bales in 2024/2025, according to Agriculture Ministry statistics. The decline has been attributed partly to farmers repeatedly using recycled seeds, which can affect seed quality and yields.

High input and labour costs have also increased production pressures, while farmers face competition from crops such as maize, cassava and sunflower that can offer better returns.

During the parliamentary meeting, Tayebwa highlighted Uganda’s interest in accessing high-yield cotton varieties and expanding domestic processing capacity.

EMKAT’s interest follows earlier efforts by its Ugandan representative, Emmanuel Matyetsye, to support cotton cultivation in eastern Uganda in September 2026. Founded in 1976, the Greek company operates across technical, commercial and industrial activities.

Uganda targets farmers and textile manufacturers

The government is pursuing several initiatives to address weaknesses across the cotton value chain, from farm productivity to industrial processing. In December 2025, the African Development Bank approved a $2 million grant for cotton sector development in northern Uganda.

The programme is designed to improve access to seeds, strengthen agricultural extension services and upgrade cotton ginning equipment, with potential benefits for up to 300,000 smallholder farmers.

Lawmakers are also seeking to restore domestic textile manufacturing infrastructure. On August 18, 2026, Parliament adopted a resolution calling for the rehabilitation and reopening of Lira Spinning Mill, which has been inactive for approximately 40 years.

According to information from the Uganda Investment Authority, establishing a modern, integrated spinning mill would require about $58 million. Parliament has called for a technical, financial, legal and commercial audit to establish the facility’s rehabilitation requirements.

$420 million textile project adds to investment pipeline

Fine Spinners Uganda Ltd is pursuing a separate expansion that could strengthen domestic demand for cotton.

The company presented a $420 million investment project for Gulu, in northern Uganda, to authorities on September 29. Its existing operations include spinning, weaving and garment manufacturing.

Fine Spinners also announced a $5 million investment in new textile machinery on September 17, bringing its cumulative equipment spending at its Kampala factory to $35 million.

The proposed expansion comes as Uganda continues to export approximately 90% of its cotton fibre without further processing, according to the Ministry of Finance.

Increasing domestic processing would allow the country to retain more value from its cotton production, while potentially creating additional demand for locally grown fibre.

EMKAT’s interest adds another potential investor to Uganda’s efforts to rebuild the industry. However, the company’s plans remain at an exploratory stage, with no investment amount, project timeline or specific processing facility publicly disclosed.

For Uganda, the challenge will be to connect renewed investment in textile manufacturing with more reliable cotton supplies, improved farm productivity and better returns for growers.