President Yoweri Museveni has welcomed an Egyptian investment proposal to establish a large-scale milk processing plant in Ngoma, saying the project would support Uganda’s dairy sector, promote value addition and create more opportunities for farmers.
The President made the remarks at State House, Entebbe, while meeting a delegation from Egypt led by Maj. Gen. Khaled Shokry Ghaith, the consultant to the Chairman of the Arab Organization for Industrialization.
The delegation is exploring investment opportunities in Uganda’s dairy industry.
It also included Egyptian investor Maj. Gen. Abdelkader Mohamed Nagy and Mr Abdel Nasser Mohamed. They expressed interest in setting up a major milk processing facility in Ngoma.
The proposed plant is expected to improve milk collection, processing and Uganda’s capacity to export value-added dairy products.
Museveni Says Uganda Has Strong Dairy Base
President Museveni said Uganda can move from traditional dairy systems to mechanised production because the country already has a strong foundation in cattle keeping and milk production.
“The transformation from manual to mechanised system is not a big issue. It is a question of mobilisation and some investment because the manual system is the ancient way. We have been keeping cows for the last 7,000 years,” President Museveni said.
He said cattle keeping was previously centred on household consumption. However, Uganda has deliberately promoted commercial agriculture over the years.
“During the time of the British, they were promoting only the things they wanted, coffee, tea and tobacco. But we came and promoted everything, moving from home consumption to commercial production,” he said.
According to President Museveni, Uganda now produces about 5.4 billion litres of milk annually.
“We are now producing 5.4 billion litres a year and we are going to overtake Holland. With 5.4 billion litres, consumption is still only about 800 million litres, meaning we have a surplus of about 4.6 billion litres,” he said.
President Pushes Better Feeding, Genetics and Mechanisation
President Museveni said Uganda must improve dairy productivity through modern feeding systems, better breeds and mechanised processes.
He said free-range grazing requires large land areas and limits output. He added that improved pasture management can help farmers produce more milk on smaller pieces of land.
“If you grow pasture, harvest it and feed the cows in the shed, one acre can feed eight cows. The yield will be higher because they are eating better,” President Museveni said.
He also said Uganda needs to improve dairy breeds to raise milk yields.
“There is also the issue of genetics, getting cows which can produce at least 20 litres a day. We can work on that,” he said.
The President welcomed the proposed introduction of modern milking and milk collection technologies by the Egyptian investors.
He said such systems would improve efficiency, milk quality and hygiene.
“This company can bring the milking equipment — one that should milk without fingers. We shall study the issue of the milk equipment,” he said.
President Museveni directed that a proposal be developed on how milk can move efficiently from farms to cooling centres and then to the processing plant.
Project Linked to Industrialisation Strategy
The President said the proposed dairy investment fits into Uganda’s wider industrialisation and economic transformation agenda.
“I told Field Marshal President Abdel Fattah el-Sisi that if you are talking about the Nile, there must be socio-economic transformation. There must be electricity in the tropics so that people stop cutting trees for firewood and engage in modern agriculture like in developed countries,” President Museveni said.
He said Uganda’s agricultural transformation depends on connecting farmers to markets, processing facilities and modern technologies.
The Egyptian delegation said it was ready to deepen cooperation with Uganda for mutual benefit.
Maj. Gen. Khalid Abdul Nasser said it was an honour to meet President Museveni and pledged continued cooperation between Uganda and Egypt.
“Our organisation is committed to strengthening cooperation with Uganda for the mutual benefit of our two friendly nations,” Maj. Gen. Khalid said.
He said the Arab Organization for Industrialization was established in 1975. He added that it has expertise in manufacturing, railway systems, renewable energy and electronics.
According to the delegation, the decision to explore investment in Uganda followed engagements with Ugandan officials and an assessment of the dairy sector.
The team also visited relevant government institutions and conducted field visits in Ngoma to assess the project’s potential.
Proposed Plant Could Process One Million Litres Daily
The Egyptian investor said the proposed facility would have capacity to process up to one million litres of milk per day.
He said the plant would use modern infrastructure, mechanised equipment and improved milk handling systems.
The project would also introduce modern milk collection methods, including milking equipment and transport systems to protect quality from the farm to the factory.
Egypt’s Ambassador to Uganda, H.E Monzer Selim, said President Abdel Fattah el-Sisi had taken President Museveni’s message on cooperation seriously.
“President Sisi met you last month and you both discussed collaborations. Your Excellency, I assure you that he has taken your words to heart and here we are already starting this journey. We look forward to your support as we implement this project successfully,” the Ambassador said.
He added that the proposed dairy project had received support from farmers in Ngoma.
Mr David Kato Muyambi, a farmer from Ngoma, said farmers in the area had struggled with limited processing and transport capacity.
“After milking about 300 litres of milk, we did not have enough capacity for transportation. In 2021, we started looking for people who could help us establish a factory in Ngoma,” he said.
Mr Muyambi told the President that he had offered land for the proposed milk processing plant. He said the local community was ready to support the investment.
He also thanked the government for improving infrastructure in the area, including the tarmacking of the Luweero–Butalangu Road.
The meeting was also attended by Hon. Amina Mukalazi, the Minister of State for Privatization and Investment; H.E Mohammad Khoder Hussien, the Consul of Uganda to Lebanon and CEO of Staunch Machinery; Mr Sedrack Nzaire; and others.
