By Beatrice Nakibuuka
A quiet but powerful revolution is unfolding in Northern Uganda, reshaping the region’s energy and business landscape.
What began as a response to deforestation and energy insecurity is now emerging as a business opportunity. Green charcoal, an alternative fuel made from agricultural waste, is proving not only environmentally sustainable but also commercially viable.
For years, traditional charcoal production in Uganda has been synonymous with widespread deforestation. Northern Uganda, in particular, had become a major hub for commercial charcoal and logging, supplying markets as far as Kenya and the Middle East. This surging demand for wood-based charcoal contributed significantly to the country’s rapid forest loss.
Business born of crisis
In May 2023, the government responded to this growing crisis. President Museveni issued Executive Order No. 3, banning large-scale commercial charcoal production in Northern Uganda. Local leaders welcomed the move, having long decried unregulated tree-cutting. However, the ban also disrupted livelihoods in communities heavily reliant on the charcoal trade and led to rising energy costs, especially in urban areas.
This disruption created an urgent need for viable alternatives, solutions that could protect the environment while sustaining local economies. Green charcoal, made from agricultural residues like rice husks and groundnut shells, emerged as a timely response. Unlike traditional charcoal, it does not involve felling trees and emits significantly less smoke, reducing the risk of respiratory illness. More importantly, it offers a new pathway for entrepreneurship.
In February 2025, Gulu University launched a green charcoal demonstration facility in Pabbo Town, Amuru District. The facility is part of a four-year initiative titled Unlocking the Potential of Green Charcoal Innovations to Mitigate Climate Change in Northern Uganda (UPCHAIN). Funded by the Danish Ministry of Foreign Affairs to the tune of six billion shillings, the project is being implemented in partnership with Aalborg University and the University of Copenhagen.
Youth-led innovation
At the heart of the facility is Yele Ber, a local youth group managing day-to-day operations. With a production capacity of over 1,000 kilogrammes of briquettes per day, the group converts agricultural waste into energy through an efficient, low-cost process. The waste is carbonised in metal drums, milled into fine particles, mixed with cassava starch as a binder, and compressed into briquettes.
Since December 2024, more than eight tonnes of briquettes have been sold locally and to neighbouring areas such as Juba (South Sudan) and Arua City. At approximately 1,000 shillings per kilogramme, daily revenues can reach up to one million shillings, demonstrating the business potential of this green energy solution.
Green charcoal also proves highly efficient: one kilogramme can cook a meal for 90 minutes, while traditional charcoal would require three times that amount. This efficiency lowers household fuel costs and reduces indoor air pollution, a significant health risk in many Ugandan homes.
Model for green entrepreneurship
Local authorities see the project as transformative. Michael Lakony, LC5 Chairperson of Amuru District, believes the initiative is creating new hope for youth, many of whom grew up in internally displaced persons’ camps. The project not only provides stable income but also helps reduce environmental degradation by repurposing agricultural waste.
The vision for green charcoal extends beyond Amuru. Regional leaders, including RDC Osborn Geoffrey Oceng, view the project as a scalable model for the entire country. Educational campaigns and stakeholder meetings are underway to raise awareness, while small-scale entrepreneurs receive technical and financial support to establish similar ventures. The ultimate goal is to build a national network of green charcoal producers.
This marks a broader shift away from environmentally harmful practices towards a model that promotes green entrepreneurship, economic empowerment, and sustainable development. The project has revealed untapped potential in Uganda’s agricultural waste stream, transforming waste into wealth.
Policy support, road ahead
With its success now evident, there are growing calls for stronger policy support. Local leaders urge government ministries and development partners to extend the project’s duration and funding. They also advocate for national regulations to formalise green charcoal as a recognised alternative energy source. Such a move could attract more investment, stimulate local manufacturing of production equipment, and boost research in clean energy technologies.
As adoption spreads, Northern Uganda is positioning itself as a leader in sustainable energy. The intersection of environmental conservation, innovation, and entrepreneurship is fuelling a new kind of economic transformation, one that delivers cleaner energy, meaningful employment, and long-term growth.
Green charcoal is more than a regional solution; it is a scalable business opportunity with nationwide potential. By turning agricultural waste into energy, Northern Uganda is showing that climate action and commercial success can indeed go hand in hand.
