Business 26 June 2026 Daily Monitor (Uganda)
Egypt Eyes Nakaseke for Shs3 Trillion Mega Dairy Plant to Boost Exports
Egyptian investors are proposing a massive Shs3 trillion dairy processing plant in Nakaseke District, aiming to leverage Uganda's substantial milk surplus for export under the AfCFTA. The project includes modernizing the supply chain with automated milking and refrigerated transport. Source: https://www.monitor.co.ug/uganda/news/national/egypt-investors-eye-nakaseke-for-shs3-trillion-mega-dairy-plant-to-boost-exports-5510328
Egyptian investors are eyeing Nakaseke District for a substantial Shs3 trillion (approximately $800 million USD) dairy processing facility, signaling a major push to capitalize on Uganda’s burgeoning milk production.
The project, spearheaded by the state-backed Egyptian conglomerate Arab Organization for Industrialization (AOI), is designed to process up to one million litres of milk daily. This initiative aligns with President Museveni’s vision for commercial agricultural mechanization and value addition, aiming to tap into new African markets.
Uganda’s dairy sector has seen rapid growth, with current production reaching 5.4 billion litres annually, far exceeding domestic consumption of about 800 million litres. This surplus presents a significant opportunity for export, particularly with the African Continental Free Trade Area (AfCFTA) creating a larger continental market.
The proposed plant aims to transform raw milk into higher-value products such as milk powder, cheese, and butter, addressing intermittent trade challenges faced within the East African Community. Investors have already conducted feasibility studies in Ngoma, Nakaseke, and engaged with the Dairy Development Authority.
To support the venture, President Museveni encouraged local farmers to adopt modern farming techniques like zero-grazing and improved pasture management to increase yields and efficiency. He also noted the government’s efforts in genetic improvement for local cattle breeds.
Furthermore, the project involves a comprehensive overhaul of the local dairy supply chain. This includes introducing automated, hygienic milking equipment and establishing refrigerated transport networks to ensure milk quality from farm to factory. The Ministry of Agriculture has been directed to develop a detailed plan for milk logistics.
This investment is seen as a strategic move that could deepen economic ties between Uganda and Egypt, while also contributing to Uganda’s broader goal of industrialization and poverty reduction. The collaboration could offer mutual economic benefits and strengthen historic relationships between the two nations.
Source: Daily Monitor (Uganda)