Soroti Fruit Factory
UDC in partnership with the Government of South Korea (through Korea International Agency [KOICA]) and Teso Tropical Fruits Cooperative Union Limited (TEFCU) established a fruit processing factory in Soroti district. It should be noted that Teso sub-region is the leading producer of citrus in Uganda. The factory was commissioned in April 2019 to provide market for oranges and mangoes and solve the challenge of post-harvest losses. UDC has expanded the capacity of the mango processing line at the factory from 2MT/hour to 6MT/hour. This is expected to reduce the gap in the uptake of mangoes in the region and beyond (predominantly purchased from farmers in Eastern and Northern Uganda), into fruit puree/concentrate and natural ready to drink juice which the company branded “Teju juice”. Commercial operations commenced in October 2019.
Investment in a pineapple processing line at the factory is currently under consideration. The Corporation invested in this Unit with the fruit farmers through the Teso Tropical Fruit Farmers’ Cooperative Union (TEFCU), with the Corporation owning 80% and TEFCU 20%.
UDC’s long term aim is to exit leaving the farmers with 100% ownership.
Atiak Sugar Factory
UDC in partnership with the private sector (Horyal Investment Holding Company Ltd (HIHC) has invested in setting up 1,650 Tons of cane crushed per day (TCD) sugar processing plant in Atiak , Amuru district. The factory is planning to scale up to 3,500TCD in phases 2 and 5,000 TCD in phase 3. The factory produces products such as molasses and bagasse used to produce ethanol and 6MW of electricity. UDC holds 32% shareholding in HIHC and this is the first large investment by Government in post-conflict Northern Uganda. The Factory was commissioned on the 22nd October 2020 by H.E Yoweri Kaguta Museveni, President of the Republic of Uganda.
Bukona Agro Processors Ltd.
Located in Lapem Village, Koch-Goma Sub County, Nwoya District, the Company, is the only manufacturer of fuel ethanol for cooking in Uganda. The government of Uganda through UDC intervened in Bukona Agro Processer Ltd by providing machinery and working capital for factory operations. The factory is involved in cassava processing into denatured ethanol, which is clean fuel for cook stoves. The factory commenced commercial operations in May 2021.
UDC shareholding in this factory is 40.5%. It has a processing capacity of 40,000L per day of denatured ethanol. Bukona Agro Processors employs over 2145 both direct and indirect jobs among other benefits.
Mutuma Commercial Agencies.
Mutuma Commercial Agencies (MCAL) is located in Luuka District, Busoga Sub region. UDC invested in MCAL, a zero-discharge factory that produces high quality cotton wool as the main factory product. Mutuma Commercial Agencies (MCAL) has been in operation since 1999. Currently, MCAL buys conventional seed cotton from over 6,000 farmers and through a process of ginning coverts seed cotton to cotton lint and cotton seeds. The company further engages in value addition by converting its cotton seeds into cotton seed oil, cotton seed cake, soap stock and cotton husks and the lint to hospital quality absorbent cotton wool. The plan for the factory is to increase the cotton wool production by improving steam production to increase cotton wool production and reduce sales for lint exports. UDC shareholding is 36% interim.
Kigezi Highland Tea Factories.
UDC in partnership with Kigezi Highland Tea Factories established two tea factories in Kabale and Kisoro districts with a Cut, Tear and Curl (CTC) capacity of 450 kilogram per hour production. This is a lease financing partnership.
The partners, who were already in business, constructed the factories while UDC provided processing equipment, generators and vehicles for transportation of raw materials and processed tea. Since their commissioning in August 2018, the plants have injected a monthly average of Shs240 million per month in the purchase of green leaf, payment of wages and utilities, and generated export revenue through the sale of tea on the Mombasa auction.
Having been commissioned in August 2018, the corporation has since December 2019 and in collaboration with Kigezi Highland Tea Ltd undertaken a drive to facilitate the planting by out grower farmers of an additional 10 million tea seedlings by farmers in areas adjacent to the two factories located in Kabale and Kisoro.
Kayonza Growers Tea Factory.
As one of the intervention strategies aimed at increasing the competitiveness of the tea value chain in Uganda, the government of Uganda through Uganda Development Corporation invested in Kayonza Growers Tea Factory located in Kanungu District by installing a 3rd CTC line with a capacity of 600 KG/Hr. aimed at improving the efficiency of the factory.
This is a brown field project investment whereby UDC aided a soft loan. Since UDC intervention, the factory has registered the following key milestones;
- Improved operational efficiency (Energy saving line by 40% (uses chemical and physical weathering system).
- Increased access to market by over 12,005 tea farmers.
- Sales revenue has increased by over 18% from UGX 23.353 billion in 2019 to about UGX 27.594 billion in 2020.
- Foreign exchange earnings have increased by 21.1% from UGX 18.779 billion in 2019 to UGX 22.785 billion in 2020.
Mpanga Growers Tea Factory.
Mpanga Growers Tea Factory in Kabarole district was incorporated in 1995 as a public limited company owned by small holder farmers, who applied for an equity partnership with UDC in 2020. UDC recapitalized the tea factory to the tune of UGX 4.34billion to facilitate purchase of green leaf to improve capacity utilization. UDC holds 31.9% shareholding in the company.
The factory produces black tea for export on the Mombasa tea Auction
Mabale Growers Tea Factory.
The Corporation has invested in Mabale Growers Tea Factory that is located in Kyenjojo district, Tooro sub-region. The factory is involved in green leaf processing. It has two CTC (cut, tear and curl) lines each with a capacity of 600 kg/hr. The factory produces black tea for export on the Mombasa tea Auction. UDC has a 48.5% shareholding in the factory.
Since its acquisition by UDC, there has been a significant increase (4.9%) in the uptake of green leaf (the raw material) between quarter 1 and 2 to 2,521,772 tones in Q2 from 2,404,785 tons in Q1. This is attributed to the fact that a good proportion of farmers who received fertilizers (on credit) sustained green leaf supply.