Uganda eyes agro-processing growth as Vice President praises China-backed industrial park

Uganda’s Vice President Jessica Alupo has praised the China-Uganda Agricultural Cooperation Industrial Park in Luwero District, describing it as an example of how agro-processing can help transform the country’s agriculture from subsistence farming into a modern commercial sector.

Alupo made the remarks during a visit to the industrial park on Thursday, where she led a delegation of senior government officials to assess its operations and future expansion plans.

She said Uganda’s long-term economic strategy depends on adding value to agricultural products before they reach local and international markets, arguing that agro-industrialization offers farmers greater opportunities to increase incomes while creating jobs along the agricultural value chain.

The vice president commended the FAO-China-Uganda South-South Cooperation initiative, under which the industrial park was established through Chinese private sector investment. She said the partnership has strengthened Uganda’s capacity to process agricultural products for export rather than relying primarily on the sale of raw produce.

Alupo pledged continued government support through improved infrastructure and policies designed to attract more investment into agro-processing and manufacturing.

The industrial park, which is celebrating its 10th anniversary this year, has become home to several agricultural enterprises, including a pineapple processing factory, a chili processing plant that exports dried chilies to China and a commercial poultry farm supplying eggs to both domestic and regional markets.

She also encouraged exporters to take advantage of China’s zero tariff policy for eligible products, saying the arrangement presents an opportunity for Uganda to expand its agricultural exports and access one of the world’s largest consumer markets.

Luo Heng, chairman of Kehong Uganda Industrial Development Limited, the Chinese company managing the project, said the park’s first phase, launched in 2016, has been completed.

According to Luo, the initial stage included investments in commercial poultry production, contract farming for chili growers, pineapple processing and the promotion of improved rice varieties among farmers.

He said the company is now preparing for a second phase of expansion, with plans to invest about $500 million over the next five years. The investment is expected to increase processing capacity, create more employment opportunities and deepen partnerships with Ugandan farmers.

The visit underscored Uganda’s growing emphasis on value addition as the country seeks to diversify its economy, strengthen agricultural exports and reduce dependence on exporting unprocessed commodities.

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