Home » Africa: Uganda Initiates Ambitious Edible Oil Business Revamp Amid Export Decline

Africa: Uganda Initiates Ambitious Edible Oil Business Revamp Amid Export Decline

by Atqnews
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Uganda has embarked on a determined mission to revive its ailing edible oil industry by launching the reconstruction of vital routes leading to oilseed projects in 81 locations across the nation.

According to africa.businessinsider.com, this ambitious effort aims to reinvigorate the country’s exports of edible fats and oils, which have witnessed a sharp decline from Ush1.05 trillion ($281.1 million) in the corresponding period last year to Ush338.2 billion ($90.5 million) in July 2023.

Challenges in Edible Oil Production
Uganda’s quest to produce this highly sought-after commodity has faced challenges exacerbated by a surge in global demand last year and a crisis in Ukraine, one of the world’s leading vegetable oil suppliers. The Ukrainian crisis disrupted supply chains and inflated prices in the local market, compounding Uganda’s difficulties in meeting demand.

READ: Africa: Kenya’s Fresh produce exporters count losses in millions as power outage hits country

Currently, the country satisfies less than 40% of its edible oil demand. To address this shortfall, Uganda is striving to boost production by revitalizing oilseed projects across various regions, implementing value addition initiatives, and enhancing transportation connections to market hubs.

Infrastructure Investment
The Ministry of Local Government has already initiated the development of technical plans for road construction and is actively engaging with local communities through monitoring and evaluation processes to identify barriers to market access. The estimated investment for this endeavor stands at Ush240 billion ($64.3 million), which will be allocated to rehabilitate approximately 2,500 kilometers of community access roads in six key hubs: West-Nile, Gulu, Lira, Eastern, Mid-Western, and Karamoja, spanning 81 districts. Additionally, it seeks to equip local government employees with engineering design skills to oversee upcoming road projects in their respective localities.

READ: Africa: Avocado Farmers excited as Kenya gets nod to Commence Avocado Exports to India In September

Addressing a Growing Disparity
Dr. Samuel Mugasi, the Executive Director of the National Agricultural Advisory Services (NAADs), expressed concerns in March 2023 about Uganda’s inadequate oilseed production and the challenges stemming from the high local demand for edible oil, leading to substantial imports.

Official figures reveal that Uganda produces 80,000 metric tons of vegetable oil annually, while domestic consumption demands 410,000 metric tons. Local oilseed farmers grapple with issues such as subpar seed quality, low yields, and reduced oil content despite Uganda’s favorable trade agreements with entities like the European Union (EU), the United States through the African Growth and Opportunity Act (Agoa), and China. These agreements offer advantageous terms, including low tariffs and quotas for premium oilseed exports.

Uganda’s determined efforts to bolster its edible oil industry underscore the nation’s commitment to addressing the challenges that have hindered its ability to meet domestic and international demand.

This strategic initiative aims to revitalize the sector, strengthen local production, and ensure a stable supply of this essential commodity to both local and global markets.

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Africa: Uganda Initiates Ambitious Edible Oil Business Revamp Amid Export Decline

by Atqnews
0 comment

Uganda has embarked on a determined mission to revive its ailing edible oil industry by launching the reconstruction of vital routes leading to oilseed projects in 81 locations across the nation.

According to africa.businessinsider.com, this ambitious effort aims to reinvigorate the country’s exports of edible fats and oils, which have witnessed a sharp decline from Ush1.05 trillion ($281.1 million) in the corresponding period last year to Ush338.2 billion ($90.5 million) in July 2023.

Challenges in Edible Oil Production
Uganda’s quest to produce this highly sought-after commodity has faced challenges exacerbated by a surge in global demand last year and a crisis in Ukraine, one of the world’s leading vegetable oil suppliers. The Ukrainian crisis disrupted supply chains and inflated prices in the local market, compounding Uganda’s difficulties in meeting demand.

READ: Africa: Kenya’s Fresh produce exporters count losses in millions as power outage hits country

Currently, the country satisfies less than 40% of its edible oil demand. To address this shortfall, Uganda is striving to boost production by revitalizing oilseed projects across various regions, implementing value addition initiatives, and enhancing transportation connections to market hubs.

Infrastructure Investment
The Ministry of Local Government has already initiated the development of technical plans for road construction and is actively engaging with local communities through monitoring and evaluation processes to identify barriers to market access. The estimated investment for this endeavor stands at Ush240 billion ($64.3 million), which will be allocated to rehabilitate approximately 2,500 kilometers of community access roads in six key hubs: West-Nile, Gulu, Lira, Eastern, Mid-Western, and Karamoja, spanning 81 districts. Additionally, it seeks to equip local government employees with engineering design skills to oversee upcoming road projects in their respective localities.

READ: Africa: Avocado Farmers excited as Kenya gets nod to Commence Avocado Exports to India In September

Addressing a Growing Disparity
Dr. Samuel Mugasi, the Executive Director of the National Agricultural Advisory Services (NAADs), expressed concerns in March 2023 about Uganda’s inadequate oilseed production and the challenges stemming from the high local demand for edible oil, leading to substantial imports.

Official figures reveal that Uganda produces 80,000 metric tons of vegetable oil annually, while domestic consumption demands 410,000 metric tons. Local oilseed farmers grapple with issues such as subpar seed quality, low yields, and reduced oil content despite Uganda’s favorable trade agreements with entities like the European Union (EU), the United States through the African Growth and Opportunity Act (Agoa), and China. These agreements offer advantageous terms, including low tariffs and quotas for premium oilseed exports.

Uganda’s determined efforts to bolster its edible oil industry underscore the nation’s commitment to addressing the challenges that have hindered its ability to meet domestic and international demand.

This strategic initiative aims to revitalize the sector, strengthen local production, and ensure a stable supply of this essential commodity to both local and global markets.

You may also like

Leave a Comment

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