AMAC PLC and TGCU Forge Landmark Partnership to Transform Agricultural Trade in Uganda

In a groundbreaking move to enhance agricultural trade across East Africa, Kenya’s AMAC PLC and Uganda’s The Grain Council Union (TGCU) have signed a historic partnership agreement. This landmark deal aims to unlock access to domestic, regional, and global markets for millions of farmers, marking a significant step toward modernizing agricultural trade systems in the region.

The Memorandum of Understanding (MoU) was formalized at the Kampala Serena Hotel, with AMAC PLC Vice-President and AMAC COMEX CEO Abraham Ng’etich and TGCU Chairman Robert Mwanje witnessing the signing. This partnership brings together AMAC’s innovative commodities exchange platform, AMAC COMEX, and TGCU’s extensive network of over 400 member organizations spanning the agricultural value chain.

Opening Global Markets for Farmers

The partnership will enable Ugandan farmers and cooperatives to access a wide range of markets through AMAC COMEX, a digital commodities exchange platform designed to connect producers with buyers globally. The agreement allows for trading in various agricultural commodities, including grain, maize, nuts, fruits, vegetables, coffee, tea, herbs, and animal feeds.

“This partnership will open domestic, regional, and global agricultural markets to more than 400 TGCU member organizations and millions of Ugandan farmers for the first time,” stated Ng’etich during the signing ceremony. He emphasized that the platform is expected to enhance transparency, improve pricing mechanisms, and eliminate inefficiencies that have historically disadvantaged smallholder farmers.

Ending Distress Selling Through Warehousing

A key feature of the partnership is the introduction of a Warehouse Receipt System (WRS). This system allows farmers to store their produce in certified warehouses and receive receipts that can be used to access financing. The warehouses will be managed by Ace Global, a globally accredited collateral manager, ensuring quality control and compliance with international standards.

“This system addresses one of the biggest challenges facing farmers—distress selling—where producers are forced to sell their crops at low prices immediately after harvest due to lack of storage and urgent financial needs,” the statement noted.

By enabling farmers to store produce against certified receipts, the WRS unlocks immediate financing and breaks the cycle of distress selling that has long suppressed farmers’ incomes.

Instant Financing: A Game-Changer for Farmers

The partnership also introduces instant post-delivery financing, allowing farmers to access working capital immediately after delivering their produce to certified warehouses.

Through AMAC COMEX’s network of 13 local and regional banking partners, farmers and cooperatives will no longer have to wait for buyers to pay before accessing funds.

“TGCU members will benefit from instant post-delivery financing without waiting for the settlement of trades,” the press release stated. This financing model is expected to improve liquidity in the agricultural sector, empowering farmers to reinvest in production, storage, and value addition.

Leaders Hail Transformative Partnership

During the signing ceremony, Ng’etich described the initiative as more than just a trading platform. “What we have created is an ecosystem and not just a platform,” he said. The goal is to provide African farmers with access to world-class market infrastructure, leveling the playing field for producers in global markets.

TGCU Chairman Robert Mwanje welcomed the partnership, noting that it would provide long-awaited solutions to market access challenges faced by Ugandan farmers.

“This agreement is a significant step forward for our farmers, who have struggled to find reliable markets for their produce,” Mwanje stated.

AMAC PLC Chairperson Moses Kuria also expressed support for the initiative. He highlighted the structural challenges in the region’s agricultural sector, stating, “The greatest challenge for farmers in the East African region is that everyone wants to do everything. We must establish structured ecosystems to ensure efficiency and collective success.”

Boosting Regional Agricultural Trade

Beyond Uganda, the agreement is expected to have broader implications for East Africa’s agricultural trade by strengthening cross-border linkages and integrating farmers into global supply chains.

The partnership provides a comprehensive end-to-end trade solution, combining trading, storage, financing, insurance, and logistics within a single platform.

It also allows members to access verified global suppliers for agricultural inputs, further enhancing productivity and competitiveness. Analysts say such integrated systems are critical in transforming Africa’s agriculture from subsistence-based production to a commercially viable sector capable of competing globally.

A Step Toward Agricultural Transformation

The AMAC-TGCU partnership comes at a time when governments across the region are prioritizing agriculture as a key driver of economic growth, food security, and job creation. By leveraging technology and financial innovation, the initiative aims to address long-standing bottlenecks in agricultural trade, including limited market access, poor storage infrastructure, and lack of affordable financing.

If successfully implemented, the partnership could serve as a model for similar collaborations across Africa, demonstrating how public-private partnerships can unlock value in the agricultural sector.

For millions of farmers in Uganda and beyond, this deal signals a shift toward a more structured, transparent, and profitable agricultural ecosystem—one that connects them directly to markets and opportunities previously out of reach.

As the agricultural landscape evolves, the AMAC-TGCU partnership stands as a beacon of hope for farmers, promising to enhance their livelihoods and foster sustainable growth in the agricultural sector.