Uganda's coffee exports to China have seen a significant surge, rising by 224 per cent in a year. Mbale City, located in eastern Uganda, is now looking to capitalize on this growing market by partnering with Guiyang City in China. The two cities have signed a Letter of Intent to Establish Friendly Exchange and Cooperation Relations, aiming to link Mbale's agricultural and industrial potential with Guiyang's expertise in technology, manufacturing, and green development.

The partnership brings together two cities with complementary economic strengths. Mbale sits at the centre of Uganda's Arabica coffee-growing region, while Guiyang has developed a growing coffee industry alongside its reputation as a centre for digital innovation. The agreement identifies five areas for cooperation: smart-city development and digital governance, industrial investment, agriculture and value addition, tourism and cultural exchanges, and environmental sustainability.

Mbale mayor Joyce Matuka Kidulu and her Guiyang counterpart, Wang Hong, signed the agreement on October 27, 2026. Kidulu presented Mbale as eastern Uganda's commercial hub, highlighting its location near the Arabica-growing highlands of Mount Elgon and its potential for industrial expansion. She also highlighted Mbale's position along the Northern Corridor, a major regional transport route, and the city's gazetted industrial park as an opportunity for investors.

The proposed cooperation could create opportunities for businesses involved in processing, packaging, and marketing coffee. Rather than focusing exclusively on exporting agricultural produce, Mbale aims to add value to its coffee production. The city's challenge is to turn growing demand into sustained business opportunities, particularly through coffee processing and value addition.

Guiyang mayor Wang Hong presented his city as a potential partner in technology and environmentally sustainable development. Guiyang is recognized in China as a major data and digital technology centre, earning the description of China's Data Valley. It is also designated a National Big Data Comprehensive Pilot Zone and a National Ecological Civilization Demonstration Zone.

The agreement does not announce specific investment amounts, guaranteed coffee purchases or confirmed industrial projects. Instead, both cities have agreed to establish a joint working group within two months of signing. A technical delegation is also expected to visit Mbale to assess investment opportunities in the industrial park, coffee value chain and tourism sector.

For eastern Uganda, the promise of this partnership is substantial. The task now is to turn diplomatic goodwill into business that reaches farmers, factories and households. The immediate test for Mbale will be whether these engagements lead to concrete commercial arrangements, benefiting coffee producers and creating opportunities for local enterprises and workers.

Key points

  • Mbale City partners with Guiyang City to tap into growing coffee market and attract investment and technology.
  • The partnership aims to link Mbale's agricultural and industrial potential with Guiyang's expertise in technology, manufacturing, and green development.
  • The agreement identifies five areas for cooperation, including smart-city development, industrial investment, and environmental sustainability.

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SaharaWire Newsroom
SaharaWire

Reporting for SaharaWire from the Nairobi bureau.