President Museveni has urged Iranian investors to establish agro-processing factories in Uganda, saying the country stands to gain more from adding value to agricultural produce than from large-scale land acquisition for commercial farming.
Museveni said Uganda offers investment opportunities in processing agricultural products such as coffee, cocoa and pineapples, noting that local processing could create jobs, boost exports and increase farmers’ earnings.
The President made the remarks on Monday, October 26, 2026, during a meeting with outgoing Iranian Ambassador to Uganda Majid Saffar at State House, Entebbe.
The discussions focused on strengthening bilateral cooperation in agriculture, healthcare, education and trade, with particular emphasis on agro-processing, agricultural machinery, seeds, fertilisers and investment opportunities.
Museveni’s position followed Saffar’s disclosure that Iranian companies were interested in establishing agricultural farms in Uganda.
“The best way is to build factories in Uganda to process agricultural products from our Ugandan farmers. Let the people here produce, and your companies process,” Museveni told the ambassador.
The President’s proposal centres on a model in which Ugandan farmers produce agricultural raw materials while foreign investors establish processing facilities to turn them into higher-value products for domestic and international markets.
Such an approach could expand market opportunities for local farmers, strengthen agricultural value chains and increase the contribution of processed products to Uganda’s export earnings.
Saffar said Iranian companies were interested in processing Ugandan agricultural products and expressed his country’s readiness to support agricultural cooperatives and farmers’ organisations.
“You’re rich in agriculture, and there are a lot of Iranian companies interested in processing Ugandan agricultural products such as cocoa, coffee, pineapples, and we’re ready to support cooperatives and agriculture unions in that line to promote trade and job creation,” he said.
The proposed cooperation could provide opportunities for farmers’ groups to access markets, improve production and supply raw materials to processing industries.
Beyond agriculture, Museveni and Saffar discussed expanding cooperation in healthcare and education, which remain potential areas for strengthening relations between Uganda and Iran.
The President also thanked the outgoing ambassador for his service in Uganda and wished him success in his future diplomatic assignments.
“Thank you for a successful tour of duty, and I wish you good luck in your future assignments,” Museveni said.
The meeting also addressed the security situation in Iran and the wider Middle East, with Museveni calling for an end to identity-based politics, which he argued contributes to tensions between countries and communities.
“I know the situation in Iran, and I follow it up very well,” he said.
The President urged countries in the region to recognise one another and pursue peaceful approaches to resolving their differences.
“My only advice to the Middle East is to stop the politics of identity. You have the wrong politics and wrong methods of solving problems,” he said.
Referring to longstanding tensions between Iran and Israel, Museveni said Iran should recognise Israel, while Israel should recognise Palestinian statehood.
“Iran should recognise Israel. Israel should recognise Palestine,” he said.
The meeting marked the end of Saffar’s tenure as Iran’s ambassador to Uganda, with both sides expressing interest in expanding bilateral cooperation in agriculture, trade, healthcare and education.
