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INVESTMENT OPPORTUNITIES AND VIABLE VENTURES IN AGRICULTURE

Monday, 25th February 2019
Ankole Longhorn Cattle (Courtesy Photo: UIA)
Agriculture is Uganda's most important sector and the largest source of export earnings, averaging 53% per annum and employing 73% of Uganda's population. However, based on various dynamics, value addition of agricultural products is the key economic development. While its hindered by lack of technical skills, lack of energy, standards and storage. Uganda government has put emphasis on developing transport infrastructure to move of commodities from production to consumption points in domestic and regional markets.

Value addition in agricultural production can take different forms and levels, ranging from the basic to more sophisticated level e.g. packaging, processing, cooling, drying, extracting or any other type of processes that differentiates the product from the original raw commodity.

Value addition is mainly in ginning, tea processing, coffee hauling, tobacco handling and processing, beverages, wheat products and the fast growing diary, fruit processing, fruit drying, grain milling, meat processing, milk production & processing, leather tanning & fish
processing.

Uganda has put resources into Uganda National Bureau of Standards to solve quality and standards issues which impede access to profitable and standard sensitive markets like the European Union among others. Storage infrastructure is also being promoted for stable supply of agricultural produce which is highly perishable and requires appropriate storage facilities

The following are Investment Profiles of bankable projects in the agriculture / Agro-processing prepared by the Uganda Investment Authority (See: Bankable Projects, Viable Investment Opportunity, 3rd Edition, 2019/2020).

PROJECT TITLE: Luweero Fruit Processing Project
Location: Luweero, Uganda
Project Description:
Establish a multi-purpose fruit processing facility (12MT/hr. for 16 hours a day) with the most suitable production systems and processing technology for fruit chopping, pulp extraction, evaporation, pasteurization, fruit drying and production of fresh juice.
INVESTMENT AMOUNT REQUIRED $7,413,000


PROJECT TITLE: Establishing Instant Coffee Plant in Uganda
Project Site or Location: TBD
Project Description:
The viability of setting up a state-of-the-art soluble coffee plant to manufacture 4,000 tonnes of freeze dried and 1,000 tonnes of spray dried instant coffee per year. Critical risk factors and their mitigation as well as availability of engineering technology were identified as key success factors.
INVESTMENT AMOUNT REQUIRED $57.33 Million


PROJECT TITLE: Setting Up a Modern Slaughterhouse in Uganda
Location: Kalerwe, Kampala City
Project Description:
The project is to set up a modern slaughterhouse facility where farm animals are killed and processed into meat products.
INVESTMENT AMOUNT REQUIRED $916,667

PROJECT TITLE: National Fruit Development Project in Uganda
Location: Countrywide
Project Description:
Fruit can be processed into; dried products, juices, concentrates, jams, wine, syrups, and powders. Processing of fruits reduces post-harvest losses and wastages especially during bumper harvest, increases and conserves produce/product shelf-life, increases value of the more perishable produce, creates employment more especially for the youth, reduces produce bulkiness, stabilizes and increases income and market.

The desired outcome of this project is to have increased volume of high quality fruit produce and products for local, regional, and international processing, marketing and consumption.
INVESTMENT AMOUNT REQUIRED $120 Million


PROJECT TITLE: Support To Revitalize Fisheries Resources In Uganda
Location: Kampala
Project Description:
This project is intended to increase and sustain fisheries production by: Promoting Aquaculture development through concentrating fish production units in aqua parks, promoting recovery of depleted stocks of the large commercial fishes through strengthening and supporting of institutional capacity for fisheries management systems and natural fish stock production.

Other ways to enhance Uganda's overall fisheries sector will be via developing the fishery of small Pelagic fishes through supporting the improvement of existing fisheries infrastructure in local governments, operationalizing by public private partnerships arrangement along the value chain and improving regional and international fish trade, controlling the new breed of water weed salvina and water hyacinth through implementing environmentally control technologies.
INVESTMENT AMOUNT REQUIRED $39 Million

PROJECT TITLE: Spinning Mill (14,000 Spindles)
Location: Lira Spinning Mill, Lira
Project Description:
Spinning in conversion of cotton lint into yarn (threads). Spinning is the foundation process for subsequent value additions i.e. Weaving, Knitting, Garments, Apparels, etc. The target raw material for the proposed spinning process will be cotton lint which is readily available in Uganda.

Lira Spinning Mill has a functioning ginnery that produces lint. The complex has buildings and structures that can be renovated to accommodate the proposed spinning mill and future expansion. Key plant and machinery required for manufacturing yarn of different counts include blow room machinery, metal detection system, spark diversion system, carding machines, card accessories, draw frame (Finisher & Breaker), speed frame, combers, ring frame, electrical infrastructure, yarn testing instruments, humidification and waste collection system and automatic cone winding machine.
INVESTMENT AMOUNT REQUIRED $23.5 Million


PROJECT TITLE: Pearl Rice Limited
Location: Iganda, Bugiri & Namutamba Districts
Project Description:
Pearl Rice Ltd was incorporated on 15th January 2009. We are located on the Naigombwa wetland 150km from Kampala. Pearl Rice Ltd works very closely with thousands of out growers that are given land, seeds, and expertise. We work very hard to develop the communities within and around the farm. Pearl Rice Ltd deals with organic rice production, milling, storage, importation and retail business. 
INVESTMENT AMOUNT REQUIRED $15 Million


PROJECT TITLE: Multi Fruit Juice Factory
Site/ Location: Kampala Industrial Business Park - Namanve
Project Description:
Reco currently produces a variety of foods such as jams, chilli sauces, honey, herbal products etc. and is seeking to expand its product line through value addition of local fruits and vegetable. It was estimated in 2010, that 180,000 tons of Passion fruits were produced in Uganda and 260,000 tons were consumed, the gap was filled by imports from the neighbouring countries. The development of the Namanve juice plant shall provide job opportunities to over 300 skilled and unskilled Ugandans as well as provide ready market and improve livelihood of over 1000 small scale farmers. 
INVESTMENT AMOUNT REQUIRED $3,400,000


PROJECT TITLE: Dairy Value Chain Enhancement for Increased Market Access
Site/ Location: Country Wide - Uganda
Project Description:
The Project goal is "to contribute to increased household income and improved nutrition". Its purpose is to enhance competitiveness of milk and milk products for increased market access and export earnings. And this will be achieved through skilling of dairy stakeholders along the value chain, strengthening the legal framework and milk quality assurance systems and rehabilitation of cold chain infrastructure.
INVESTMENT AMOUNT REQUIRED $2,900,000


PROJECT TITLE: Youth Empowerment through Dairy Value Addition
Site/ Location: Country Wide - Uganda
Project Description:
The Project is meant to improve the livelihoods of the youth. The Purpose is to have more youth involved in dairy value addition. It is meant to skill the youth in value addition, establishing twenty (20) rural dairy cottage centres of excellence and equipping the Entebbe Dairy Training School.
INVESTMENT AMOUNT REQUIRED $1,900,000


PROJECT TITLE: Maize Milling Project
Site/ Location: Iganga District
Project Description:
The concept of this project is to acquire a maize milling plant with a capacity of 100 MT per day to process a super maize meal for the local and regional markets. From maize grain, super maize meal will be processed and packed in a labeled bag with a proposed brand ready for the market. 
INVESTMENT AMOUNT REQUIRED $5,000,000


PROJECT TITLE: Establish ethanol factory in Gulu
Project Site/ Location: Gulu Industrial Park
Project Description:
The project is to establish ethanol factory in Gulu with and installed capacity of 780, 000 litres of ethanol, and 624,000 kilograms of Carbon Dioxide, 54,600 litres of acetaldehyde and 124,800 kilograms of animal and poultry feeds per annum. The project will involve construction of the factory and office and warehouse building, importation and installation of machinery, recruitment and training manpower. The project is estimated to cost $820,000 of which $574,000 will be foreign exchange and $246,000 in local currency. The project fulfills Government policy of increasing production, self-sustaining, and creation of jobs.
INVESTMENT AMOUNT REQUIRED $820,000 (2,952,000,000 UGX)


PROJECT TITLE: YAHE International Regional Grain Hub
Project Site/ Location: Kapeeka-Nakaseke District
Project Description:
The project covers the districts of Nakaseke and parts of Wakiso, Kiboga, Luwero and Nakasongola. It comprises a state of the art Grain handling and processing Plant, which has been installed at Kapeeka - Nakaseke District, approximately sixty (60) kilometers from Kampala City.

The Plant has a cleaning/drying capacity of ten to fifteen Metric Tonnes (10 - 15 MT) per hour. It also bears a two thousand (2,000) MT silo storage capacity. A three thousand (3,000) MT licensed grain warehouse is under completion. The company seeks a mutually
beneficial business relationship for the 45 operational grain hubs.

Source: Uganda Investment Authority & Uganda Embassy, Berlin

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