Pepper market in Uganda

Earlier Report Observations

Uganda's pepper production demonstrated steady growth from 2018 to 2021, supported by the introduction of new varieties such as Long Cayenne in northern regions and improved agronomic practices that enhanced yield and quality. Initial export orientation, including shipments to the European Union, laid the foundation for subsequent trade dynamics.

A sharp drop in exports by 77-80% in 2019 due to market and production challenges significantly increased the domestic market volume to 2 043 t. The recovery and rise in export prices to $5.76 per kg in 2021 then stimulated export activity, reducing the available domestic volume to 1 718 t by 2021, with a slight stabilization to 1 722 t in 2022.

The enactment of Uganda's Competition Act in 2023 established a new framework for market structure, potentially affecting competition and entry of new players, while global factors continued to drive exports. By 2023, the market volume had declined to 1 553 t, reflecting sustained export demand.

Production pepper in Uganda

In kind, 2017-2020, t

On a global scale, Uganda ranked as the 20th largest producer of pepper between 2017 and 2020.

Top producers of pepper, 2017-2020

World map of production of pepper, 2017-2020

Uganda's pepper production increased for the third consecutive year. In 2020, the country produced 2 206 tonnes of pepper, marking a slight rise of 1.2% compared to the previous year. From 2017 to 2020, production grew by 4.2%, which translates to an annualized growth rate of 1.4%.

Annual dynamics of production in Uganda in kind, 2017-2020, t

Exports pepper from Uganda

Exports in kind, t

Uganda's pepper exports showed noticeable fluctuations during this period. Exports reached their lowest point in 2019 at 162.8 tonnes, before peaking in 2017, with a five-fold difference between these years. In 2020, exports amounted to 254.6 tonnes, representing a significant increase of 56.4% compared to 2019. The largest decline occurred in 2019, with a drop of 78.9%.

Annual dynamics of product's exports from Uganda in kind, 2017-2020, t

Between 2017 and 2020, Spain, Italy, and Indonesia were the largest buyers of Ugandan pepper in terms of volume. Spain accounted for 22.6% of exports, Italy for 21.7%, and Indonesia for 13.0%. Together, these three countries formed 57.3% of Uganda's total pepper exports by volume.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Uganda in kind, 2017-2020

Exports in value, K $ US

Uganda's pepper export revenues experienced notable volatility during this period. The lowest value was recorded in 2019 at 455 thousand US dollars, while the peak occurred in 2017, showing a 6.5-fold variation between these years. In 2020, export revenues reached 1 182 thousand US dollars, marking a substantial year-on-year increase of 159.5%. The largest decline was in 2019, with a decrease of 77.4%.

Annual dynamics of product's exports from Uganda in value, 2017-2020, K $ US

From 2017 to 2020, Spain, Italy, and the Netherlands formed the core of Uganda's pepper exports in value terms. Spain held a 22.2% share, Italy 22.1%, and the Netherlands 13.8%. Collectively, these three countries accounted for 58.2% of Uganda's total pepper export revenues.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Uganda in value, 2017-2020

Imports pepper to Uganda

Imports in kind, t

Uganda's pepper imports increased by 21.3% between 2017 and 2020, equating to an annualized growth rate of 6.6%. In 2020, imports amounted to 1 000 tonnes, marking a rise of 20.5% compared to the previous year. The largest decline was recorded in 2019, with a decrease of 1.1%.

Annual dynamics of product's imports to Uganda in kind, 2017-2020, t

Over the period from 2017 to 2020, Kenya, India, and Malaysia were the leading sources of pepper imports to Uganda by volume. Kenya accounted for 38.6% of imports, India for 33.2%, and Malaysia for 7.0%. Together, these three countries represented 78.8% of Uganda's total pepper imports in kind.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Uganda in kind, 2017-2020

Imports in value, K $ US

Uganda's pepper import market showed signs of volatility during the observed period. The lowest value was recorded in 2017, while imports peaked in 2018, reflecting a 2.3-fold gap between these years. In 2020, imports reached 145 thousand US dollars, marking a slight decrease of 2.1% from the previous year. The maximum value was in 2018 at 148 thousand US dollars, with the largest increase occurring that year at 130.9%.

Annual dynamics of product's imports to Uganda in value, 2017-2020, K $ US

Throughout 2017 to 2020, Kenya clearly dominated Uganda's pepper imports in value terms, accounting for 73.1% of total flows. Other countries each held significantly smaller shares in the import market.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Uganda in value, 2017-2020