Uganda has listed eight high value investments in agriculture as presented at the ongoing Agrifood Systems Investment and Financing Conference.
Samson Akankiza, Commissioner at Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) has presented eight carefully analysed agricultural investment opportunities aimed at attracting both domestic and international investors.
Mr. Akankiza noted that Uganda’s economy, currently valued at $55 billion, continues to grow steadily at a rate of 5.3%, with agriculture contributing 24% to the GDP.
He emphasised that agriculture remains the backbone of Uganda’s economy and a key driver in the country’s ambition to grow its economy tenfold in line with Vision 2040.
He reported that Uganda’s strategic direction is focused on transitioning from subsistence farming to a middle-income status, while tackling poverty and unemployment.
This transformation, he explained, is aligned with the Hand-in-Hand Initiative of FAO and Uganda’s own commitments under the Sustainable Development Goals (SDGs).
Commissioner Akankiza emphasised that Uganda is among Africa’s most rewarding investment destinations, citing its location at the heart of regional trade blocs such as the East African Community (EAC), COMESA, and the African Continental Free Trade Area (AfCFTA), which collectively provide access to over 900 million consumers.
He added that investors benefit from a liberal economy, low labour costs, guaranteed profit repatriation, and generous tax incentives including income tax holidays and zero import duty on agricultural machinery.
He presented eight investment cases and expected returns:
Dairy Processing: Uganda currently produces 5.4 billion litres of milk annually, yet much of it remains unprocessed. Mr. Akankiza proposed establishing four modern milk processing plants across different regions, each with a capacity of 500,000 litres per day.
He reported an internal rate of return (IRR) of 25.8% and a payback period of four years for micro-scale investments starting at $1.2 million.
Animal Feeds and Pastures: He highlighted significant gaps in feed supply, including a 360,000-ton deficit for cattle and over 3 million tons for poultry. With a livestock population of over 122 million poultry, 16.4 million cattle, and 1.7 million pigs, the demand is clear.
The IRR stands at 26.7%, with investment options ranging between $2.3 million and $6.1 million.
Foot and Mouth Disease Vaccine Production: Uganda needs over 32 million doses annually. Mr. Akankiza revealed that government and private players could invest jointly in a $85.42 million facility, with an IRR of 6.8% and a payback period of four years.
Maize Processing : With annual maize production at 4.8 million tons, there is untapped potential in value-added products like maize oil, cornflakes and starch. Investors could expect returns as high as 29.4% IRR with micro-scale investments starting at just $100,000.
Beef Processing: The Commissioner reported that Uganda exports 125,000 metric tons of beef, valued at $1.53 billion. A modern abattoir capable of processing 100 cattle per day was proposed, with a projected IRR of 38.4% and a payback period of six years.
Hides and Skins (Leather) Processing: Uganda generates over 5 million hides annually. Mr. Akankiza said that value addition through wet blue, crust and finished leather processing could yield a 31.6% return and payback within four years.
One-Stop Input and Mechanization Centres: These centres would provide quality inputs, equipment, and advisory services to farmers. Investment starts at $140,000 for micro-level investors, with an IRR of 22.5%.
Banana Processing: As a major staple crop, bananas have great export potential. Investment in banana wine, juice and fibre could bring in returns of 30.4%, with payback in under five years.
He encouraged investors to take advantage of Uganda’s enabling environment, supportive government policies, and ready regional and global markets
