President Museveni backs Egyptian investment in a modern dairy processing plant aimed at increasing milk value addition, exports, and farmer incomes.
Ugandan President Yoweri Kaguta Museveni has welcomed a proposed Egyptian investment in the country’s dairy sector, endorsing plans to establish a modern milk processing facility in Ngoma, Nakaseke District. The project is expected to strengthen Uganda’s dairy value chain by increasing milk processing capacity, promoting value addition, and expanding export opportunities for dairy products.
The investment proposal was presented by a delegation of Egyptian investors led by representatives of the Arab Organisation for Industrialisation (AOI) during a meeting with President Museveni at State House in Entebbe. The delegation outlined plans to develop a large-scale dairy processing plant capable of handling up to one million litres of milk per day, supported by modern processing equipment and improved milk collection systems.
President Museveni said Uganda has made remarkable progress in milk production, with annual output reaching approximately 5.4 billion litres. However, domestic consumption accounts for only about 800 million litres, leaving a significant surplus that requires additional processing capacity and access to export markets. He emphasized that increasing value addition is essential to maximizing returns from the country’s dairy sector.
The President also highlighted the need to modernize dairy farming through improved cattle genetics, mechanised milking systems, better pasture management, and efficient milk collection infrastructure. According to Museveni, integrating modern technology into dairy production will improve productivity, reduce post-harvest losses, and enhance milk quality.
The proposed Ngoma dairy project aligns with Uganda’s broader industrialisation strategy, which prioritizes processing agricultural commodities locally instead of exporting raw products. Expanding milk processing is expected to increase production of value-added dairy products such as milk powder, cheese, butter, yoghurt, and other processed dairy foods for regional and international markets.
The investment is also expected to generate employment, improve incomes for dairy farmers, strengthen cold-chain infrastructure, and create new opportunities for Uganda’s dairy export industry. By increasing processing capacity, the project could help stabilize milk prices while enhancing the country’s competitiveness in global dairy markets.
The proposed partnership reflects growing economic cooperation between Uganda and Egypt, with both countries seeking to expand collaboration in agro-processing, manufacturing, and value-added industries. If implemented, the Ngoma dairy processing facility will become one of Uganda’s largest dairy investments and support the country’s long-term vision of transforming its agricultural sector through industrialisation and export-led growth.