Egyptian Investors Eye One-Million-Litre Dairy Plant in Ngoma

President Yoweri Kaguta Museveni has welcomed plans by Egyptian investors to establish a modern dairy processing facility in Ngoma, Nakaseke District, saying the project will strengthen Uganda’s dairy sector, promote value addition, and create opportunities for farmers.

The President made the remarks today at State House Entebbe while meeting a delegation from Egypt led by Maj. Gen. Khaled Ghaith, Consultant to the Chairman of the Arab Organization for Industrialization (AOI), which is exploring investment opportunities in Uganda’s dairy industry.

The delegation also included Egyptian investor Maj. Gen. Abdelkader Mohamed Nagy and Mr. Abdel Nasser Mohamed, who expressed interest in establishing a large-scale milk processing plant in Ngoma. The proposed facility aims to improve milk collection and processing while supporting Uganda’s ambitions of exporting value-added dairy products.

President Museveni said Uganda’s transition from traditional dairy production methods to mechanised systems is achievable, noting that the country has already developed a strong foundation in 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 explained that cattle keeping was historically practiced mainly for home consumption, but Uganda has deliberately shifted towards commercial agriculture.

“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.

President Museveni noted that Uganda’s dairy industry has grown significantly and that the country is now producing 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.

The President said Uganda must now focus on improving productivity through modern feeding systems, better genetics, and mechanisation.

He explained that free-range grazing limits productivity because it requires large amounts of land, while modern pasture management can significantly increase output.

“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 added that Uganda is working to improve dairy breeds in order to increase milk production.

“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.

President Museveni welcomed the introduction of modern milking and milk collection technologies by the Egyptian investors, saying the systems would improve efficiency 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.

He directed that a proposal be developed on how milk can be efficiently transported from farms through cooling centres to the processing plant.

The President also said the dairy investment aligns with Uganda’s broader strategy of industrialisation and economic transformation.

“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 noted that Uganda’s agricultural transformation requires stronger linkages between farmers, markets, processing facilities, and modern technologies.

The Egyptian delegation said it was committed to strengthening cooperation with Uganda for mutual benefit.

Maj. Gen. Khalid Abdul Nasser said it was an honour to meet President Museveni and expressed commitment to enhancing cooperation between the two countries.

“Our organisation is committed to strengthening cooperation with Uganda for the mutual benefit of our two friendly nations,” Maj. Gen. Khalid said.

He explained that the Arab Organization for Industrialization, established in 1975, has developed expertise in several sectors, including manufacturing, railway systems, renewable energy, and electronics.

He said the decision to explore investment opportunities in Uganda followed engagements with Ugandan officials and an assessment of the dairy sector.

The delegation visited relevant government institutions, including dairy sector authorities, and conducted field visits in Ngoma, where they assessed the potential for the project.

The Egyptian investor said the proposed facility would have the capacity to process up to one million litres of milk per day, supported by modern infrastructure, mechanised equipment, and improved milk-handling systems.

He added that the project would introduce modern milk collection methods, including milking equipment and transportation systems, to ensure quality from the farm to the factory.

The Ambassador of Egypt to Uganda, H.E. Monzer Selim, said President Abdel Fattah el-Sisi had taken President Museveni’s message on cooperation seriously and expressed support for strengthening relations between the two countries.

“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 also noted that the proposed dairy project had received support from farmers in Ngoma.

Meanwhile, Mr. David Kato Muyambi, a farmer from Ngoma, said local farmers had long faced challenges due to limited processing and transportation facilities.

“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 informed the President that he had offered land for the construction of the proposed milk processing plant and said the local community was ready to support the investment.

He also thanked the government for infrastructure improvements, including the tarmacking of the Luweero–Butalangu Road, which has enhanced connectivity in the area.

Among those in attendance were Hon. Amina Mukalazi, Minister of State for Privatisation and Investment; H.E. Mohammad Khoder Hussien, Uganda’s Consul to Lebanon and CEO of Staunch Machinery; Mr. Sedrack Nzaire; and other stakeholders.