Climate change will have significant impacts on economic activity and value chains in Uganda. But it can also provide new possibilities for people and businesses – for example, to create new products and services, develop new markets and access new funding streams and finance mechanisms. The semi-arid Karamoja region in the northeast of Uganda accounts for around 20% of Uganda’s total livestock. Investment in this sector can leverage development, employment opportunities and other socioeconomic benefits for both Karamoja and Uganda, reduce the vulnerability of pastoralists to climate change and contribute to national development priorities, including achievement of the Sustainable Development Goals. This paper identifies and explores the economic opportunities for entrepreneurs and companies to invest in climate change adaptation to enhance the resilience of Karamoja’s livestock value chain. Using an innovative approach to value chain analysis – Value Chain Analysis for Resilience in Drylands (VC-ARID) – this research considers trade-offs and identifies adaptation options for Karamoja through upgrading the value chain and diversification into related sectors.