Uganda Breweries Limited (UBL) has strengthened its contribution to Uganda’s agricultural sector by investing billions of shillings in local farmers and integrating smallholder producers into its manufacturing supply chain.
A report on the company’s economic impact shows that UBL paid more than Shs36 billion directly to local smallholder farmers in 2024 for key agricultural raw materials, including barley, sorghum and cornstarch.
The initiative has supported about 35,000 small-scale farmers across Uganda, providing them with access to certified seeds, financial support, farming tools, training and guaranteed markets for their produce.
Through its local sourcing strategy, UBL has positioned agriculture as a critical part of its value chain, ensuring that income generated from its manufacturing activities reaches rural communities where farming remains a major source of livelihoods.
Speaking during the launch of the Oxford Economics Africa report on UBL’s economic impact, Minister of Trade, Industry and Cooperatives Hon. Sanjay Tanna said the findings demonstrate the importance of evidence-based planning in strengthening Uganda’s industrial sector.
“Ugandans do business with a lot of speculation. No business can grow without research,” Tanna said.
He said the report would help the government better understand the contribution of industries and develop policies that support economic growth.
“I want to commend Uganda Breweries for commissioning this study. We need evidence. We need numbers. Without data, we cannot make sound decisions,” he said.
Supporting Farmers Across Uganda
UBL’s demand for agricultural inputs has created opportunities for farmers in different regions depending on the crops they produce.
Barley farming has become an important cash crop for communities in high-altitude areas, particularly in the Rwenzori and Eastern highlands, where farmers benefit from a reliable market for their produce.
In Eastern and Northern Uganda, especially the Teso sub-region, sorghum production has been boosted through partnerships that help farmers access improved inputs, technical knowledge and stable buyers.
The company’s use of cornstarch also connects its operations to Uganda’s wider maize sector, creating additional demand for local maize producers.
UBL also sources neutral spirits from local producers who use sugarcane molasses, a by-product of Uganda’s sugar industry. This links the company’s spirits production to sugarcane-growing communities, particularly in the Busoga region.
UBL Managing Director Félicité Nson said local sourcing remains central to the company’s commitment to supporting Ugandan farmers and communities.
“One of the findings that resonated most with me is the importance of local sourcing. For many years, we have worked with Ugandan farmers to source crops such as barley and sorghum whenever they meet our quality and supply requirements,” Nson said.
She said the company balances local sourcing with imported specialised inputs that are not currently available in Uganda to maintain production standards.
“This balanced approach enables us to produce world-class brands while continuing to invest in Ugandan agriculture and manufacturing,” she said.
“When local businesses grow, communities grow. When farmers succeed, manufacturers like us succeed too. That is the kind of partnership we want to continue building in Uganda.”
Strengthening Rural Incomes
The company said its agricultural partnerships are designed to provide farmers with more predictable incomes while encouraging commercial farming practices.
By purchasing locally produced raw materials, UBL reduces reliance on imported agricultural inputs and ensures that more value generated within its operations remains in the Ugandan economy.
The company’s support includes farmer training programmes aimed at improving productivity, quality standards and access to markets.
Agriculture remains one of Uganda’s largest sources of employment, with millions of households depending on farming for income. However, smallholder farmers often face challenges including limited access to quality inputs, financing and reliable markets.
UBL’s local sourcing model seeks to address some of these challenges by creating structured relationships between farmers and industry.
UBL Board Chairman Jimmy D. Mugerwa said the company’s contribution goes beyond beverage production, extending to farmers, suppliers, distributors, retailers and communities.
“Uganda Breweries exists not simply to produce beverages or help people celebrate life’s special moments. We are here to make a meaningful contribution to Uganda’s socio-economic development,” Mugerwa said.
He said the company commissioned the economic impact study to provide evidence that can guide discussions on manufacturing, investment and economic growth.
“The purpose was not simply to celebrate Uganda Breweries. It was to contribute objective evidence that can inform national discussions on manufacturing, investment and economic growth,” he said.
Building Local Value Chains
Beyond direct payments to farmers, the brewer’s agricultural activities support wider economic networks involving suppliers of seeds, transporters, agro-input dealers and other service providers.
The company’s approach reflects a growing focus among manufacturers on developing local value chains that connect production, processing and markets within Uganda.
Minister Tanna said UBL’s operations align with the government’s agro-industrialisation agenda and encouraged the company to continue increasing the use of locally produced raw materials.
“Uganda Breweries fits directly within agro-industrialisation,” he said.
He added that investments that increase local processing capacity would create jobs, strengthen agriculture and reduce dependence on imported inputs.
“I understand Uganda Breweries is considering establishing a malting plant. That investment would create additional value within Uganda by processing raw materials locally instead of importing processed inputs. It would create more jobs. It would increase demand for locally grown crops. It would strengthen our agricultural sector,” Tanna said.
Through continued investment in local sourcing, UBL says it aims to contribute to agricultural transformation while supporting communities that supply the raw materials needed for its products.
The company’s engagement with farmers demonstrates how private sector investment in agriculture can create links between industrial growth and rural economic development.