ENTEBBE – President Yoweri Kaguta Museveni has welcomed plans by Egyptian investors to establish a modern dairy processing facility in Ngoma, Nakaseke District, describing the project as a major boost to Uganda’s dairy sector, value addition agenda and farmers’ incomes.
The President made the remarks on Friday at State House, Entebbe, during a meeting with a delegation from Egypt led by Maj. Gen. Khaled Shokry Ghaith, Consultant to the Chairman of the Arab Organisation for Industrialisation (AOI), which is exploring investment opportunities in Uganda’s dairy industry.
The delegation included Egyptian investor Maj Gen Abdelkader Mohamed Nagy and Mr Abdel Nasser Mohamed, who presented plans to establish a large-scale milk processing plant in Ngoma. The proposed facility is expected to improve milk collection, processing and Uganda’s capacity to export value-added dairy products.
President Museveni said Uganda’s transition from traditional cattle keeping to a modern, mechanised dairy industry is well within reach, noting that the country has already built 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 an ancient way. We have been keeping cows for the last 7,000 years,” the President said.
He explained that cattle keeping had historically been largely for household consumption, but successive government interventions have transformed agriculture into a commercial enterprise.
“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.
The President highlighted the remarkable growth of Uganda’s dairy industry, revealing that the country now produces approximately 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.
He stressed that Uganda’s next priority is improving productivity through mechanisation, better pasture management and enhanced livestock genetics.
President Museveni noted that traditional free-range grazing requires vast amounts of land and limits productivity, whereas modern pasture cultivation and zero-grazing systems significantly increase milk yields.
“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,” he said.
He added that the government is also working to improve dairy breeds capable of producing at least 20 litres of milk per cow per day. “There is also the issue of genetics, getting cows which can produce at least 20 litres a day. We can work on that,” he added.
The President welcomed the Egyptian investors’ proposal to introduce modern milking and milk collection technologies, saying they would improve efficiency, quality and hygiene across the dairy value chain.
“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 further directed that a comprehensive proposal be prepared on establishing an efficient milk collection system linking farms, cooling centres and the processing plant.
President Museveni observed that the proposed dairy investment aligns with Uganda’s broader industrialisation and socio-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,” he said.
He emphasised that agricultural transformation depends on connecting farmers to reliable markets, agro-processing industries and modern technologies.
Speaking on behalf of the delegation, Maj Gen Khalid Abdul Nasser expressed appreciation for the opportunity to meet President Museveni and reaffirmed the Arab Organisation for Industrialisation’s commitment to strengthening economic cooperation with Uganda.
“Our organisation is committed to strengthening cooperation with Uganda for the mutual benefit of our two friendly nations,” he said.
He explained that AOI, established in 1975, has developed expertise in manufacturing, railway systems, renewable energy, electronics and other industrial sectors.
According to the delegation, the decision to explore investment opportunities in Uganda followed consultations with government agencies and field assessments of the country’s dairy sector, including visits to Ngoma.
The investors disclosed that the proposed dairy plant will have the capacity to process up to one million litres of milk per day and will incorporate modern processing infrastructure, mechanised equipment and advanced milk handling systems.
They added that the project will introduce modern milk collection technologies, including mechanised milking equipment and efficient transportation systems, to preserve milk quality from the farm to the factory.
The Ambassador of Egypt to Uganda, H.E. Monzer Selim, said President Abdel Fattah el-Sisi had embraced President Museveni’s call for deeper economic cooperation 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 has already received strong support from farmers in Ngoma.
Representing local farmers, Mr David Kato Muyambi said dairy producers in the area have long struggled with inadequate milk transportation and processing facilities.
“After milking about 300 litres of milk, we did not have enough transportation capacity. 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 processing plant and assured the investors of the community’s full support.
He also commended the government for infrastructure improvements, particularly the tarmacking of the Luweero–Butalangu Road, which has significantly improved access to markets.
The meeting was attended by the Minister of State for Privatisation and Investment, Hon. Amina Mukalazi, the Consul of Uganda to Lebanon, H.E. Mohammad Khoder Hussien, the Chief Executive Officer of Staunch Machinery, Mr Sedrack Nzaire, and other government and private sector stakeholders.