ACODE Calls for Stronger Agro-Industrialisation Interventions and Climate Action in Uganda’s 2027/2028 National Budget

Posted on: 2026-10-06 08:53:16

The Advocates Coalition for Development and Environment (ACODE) has called upon the Government of Uganda to strengthen the 2027/2028 Budget Call Circular (BCC) by prioritising agro- industrialisation, Productive Use of Solar Energy (PUSE), climate justice and effective tracking of climate-related public expenditure.

ACODE has submitted proposals to the Permanent Secretary and Secretary to the Treasury at the Ministry of Finance, Planning and Economic Development, urging Government to provide clearer budget guidance to Ministries, Departments and Agencies (MDAs) and Local Governments on investments that can accelerate agricultural transformation while strengthening climate resilience.

Greater integration of Productive Use of Solar Energy (PUSE) ACODE argues that Productive Use of Solar Energy Can Transform Agriculture. However, limited access to affordable and reliable energy remains a major constraint to agricultural productivity and value addition, particularly for smallholder farmers and rural enterprises.

ACODE is therefore calling for greater integration of Productive Use of Solar Energy (PUSE) into agricultural value chains, including irrigation and water pumping, drying, processing, cold storage, cooling and other value-addition activities. Productive use of solar energy should no longer be treated simply as an energy-sector intervention. It is an important enabler of agricultural productivity, value addition, rural incomes and climate resilience.

ACODE notes that scaling up PUSE can reduce post-harvest losses, increase productivity and farmers’ incomes, create rural employment and reduce vulnerability to climate-related shocks. However, the integration of PUSE in the agricultural value chain is affected by the lack of fully developed bankable projects that commercial lenders and investors consider structurally and financially sound enough to fund.

Introduce Measurable Productive Use of Solar Energy (PUSE) Indicators ACODE is calling for dedicated and measurable Productive Use of Solar Energy indicators and targets within Government budget and performance frameworks. Such indicators would enable Government to track investments in productive use of solar energy, unlock global climate funding, identify beneficiaries including women, youth and smallholder farmers and assess impacts on agricultural productivity, value addition, employment, incomes and climate resilience by providing measurable proof of how well a community is shielded from climate- induced crop failures and post-harvest losses.

Climate Action Must Be Just and Equitable

ACODE is also urging Government to place climate justice and equity at the centre of climate and environmental interventions. Uganda’s climate investments must reach the communities that are most vulnerable to climate change. Climate action should not only reduce emissions and build resilience; it must also protect livelihoods, respect rights and ensure equitable distribution of benefits.

Strengthen Climate Budget Tagging ACODE further calls for stronger implementation of Climate Change Budget Tagging (CCBT) across MDAs and Local Governments. The inadequate use of designated climate budget codes, including 000089 (Mitigation) and 000090 (Adaptation), can undermine accurate tracking and reporting of public expenditure on climate adaptation and mitigation.

Strengthening climate budget tagging will improve transparency, accountability and Government’s ability to demonstrate the scale and impact of climate-related investments.

ACODE’s Key Asks

ACODE implores the Ministry of Finance, Planning and Economic Development to ensure that the FY2027/2028 Budget Call Circular:

Prioritises Productive Use of Solar Energy across agricultural value chains, from primary production, solar-powered irrigation, processing, storage, cooling, and value addition.

Introduces measurable PUSE indicators and targets into national budget guidelines and institutional performance frameworks.

Requires MDAs and Local governments to develop bankable PUSE projects capable of attracting climate and development finance.

Emphasises Local Governments to identify localised agricultural value chains where solar energy can increase productivity and incomes and integrate appropriate interventions into their annual budgets.

Compels MDAs and Local governments to mainstream climate justice and equity into climate-related interventions, with particular attention to vulnerable and marginalised communities.

Obligates MDAs and Local governments to strengthen climate budget tagging, including the mandatory and accurate utilization of relevant budget codes.

Conclusion A Green Opportunity for Agricultural Transformation: ACODE believes that the 2027/2028 national budget provides an important opportunity to accelerate Uganda’s transition towards a more productive, climate-resilient and inclusive agricultural economy.

Strategic investment in Productive Use of Solar Energy, combined with stronger climate justice measures and improved climate finance tracking, will ensure that public resources deliver tangible benefits to farmers, rural enterprises and vulnerable communities.

For further information, Contact:

Mr. Onesmus Mugyenyi Deputy Executive Director/ Program Manager, Environment and Natural Resources Governance program Advocates Coalition for Development and Environment (ACODE) Tel: 0702423447, Email: omugyenyi@acode-u.org