Opportunities in Edible Oil Production

Uganda combines a rapidly growing market of nearly 40 million people with access to the EAC market of 175 million people. With the lowest cost and fastest growing labour force in the region, suitable land availability, and an investor-friendly environment, Uganda is a good location for edible oils.

Why Uganda ?

  • Uganda has a large domestic market with demand for edible oils expanding rapidly (Uganda’s imports of edible oils increased more than five-fold to over $ 30 million in 2017).
  • Member of EAC, which had recorded ever imports of edible oils in 2017, with 50% growth reaching nearly $1 billion.
  • Uganda has a strong track in the production of agricultural products and is the most open trading country in the region.
  • 35% of Uganda’s land is arable and suitable for growing edible oil seeds. such as sesame, soya bean, and sunflower.

Opportunities in premium oils include ;-

  • Production of Premium Virgin oils for export is realisable in Uganda in the medium to longer term. The premium oils segment has higher margins and less aggressive. Some players like Mukwano are already exporting premium/pure sunflower oils from Uganda to Switzerland and Belgium and demand in these and Asian markets is expected to continue growing steadily as awareness and incomes
  • There are also opportunities for investment in the up-stream value chain in Uganda to expand raw material supplies {e.g. avocado production), for which there is strong demand.

Featured SUCESS STORIES

Mukwano Logo Uganda
Established in Uganda in the 1980s and has grown to become a diversified enterprise with oil seed crop production {mainly sunflower and soya bean with over 100,000 farmers) and manufacturing of oil products, soap, detergents, plastics, and water.
bidco

Bidco Uganda was established as a Joint Venture investment with Wilmar International from Singapore {the leading agribusiness group in Asia). The company produces oils, fats, soaps, and other products in Uganda and is investing US$ 160 million in its Uganda refining capacity. The company currently has nearly 2,000 registered farmers, withUS$ 2.734 million in annual production