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Africa Food & Beverages News

Uganda’s food, beverage and milling industry has made great strides:

Uganda’s food, beverage and milling industry has made great strides, with increased investments by local, regional and international companies. We review the trends and opportunities in one of the most promising African countries The East African country of Uganda has a unique profile: vast agricultural potential, a young and fast growing population and a country that is well located at the entry point to one of Africa’s remaining frontiers: the Great Lakes region. After decades of war and poor governance after its independence, the country has increasingly become one of the best options in Africa to set up businesses related to the food industry.

KEY FOOD INDUSTRY PROSPECTS:

The grain milling sector has grown extensively in Uganda over the last 10 years, following the changes in consumption habits as urbanization takes its toll. Although bananas and other tubers including cassava, continue to be part of the diet in the country, the growth in consumption of maize (locally called posho), rice and wheat flour continues to thrive as young urban consumers dictate more of the consumption habits in the country. According to the United States Department of Agriculture (USDA), in the latest available estimates, Uganda produced about 2.8 million tonnes of maize, with consumption of just above 2 million tonnes, while rice production stood at 238,000 MT, compared to 346,309 MT consumed in the country. Wheat consumption stands at 500,000 MT compared to 20,000 MT produced locally. From the above figures, Uganda fails to meet its demand for rice and wheat from local production, key commodities where local demand is forecast to rise substantially, while although local processing of maize is increasing, the country is a critical supplier of the commodity to the East African market, especially to Kenya, South Sudan and other countries.
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