Monday, June 1, 2026
No menu items!
Home Blog Page 17

Uganda Addresses Integration on World Stage

World Business Journal was in New York City for the 78th session of the UN General Assembly General Debate, and Vice President Jessica Alupo of Uganda’s address where she spoke about female empowerment, South-South cooperation and Kampala’s plans to host the G77 Third South Summit in January 2024.

“We remain actively involved in regional initiatives, particularly those under the AU, the Intergovernmental Authority on Development, EAC [and] the International Conference on the Great Lakes Region.”
Vice President Jessica Alupo of Uganda UNGA General Debate, September 21, 2023

At the 78th session of the UN General Assembly (UNGA) General Debate in New York City, US, in the afternoon session of September 21, 2023, Vice President Jessica Alupo of Uganda gave the country’s address. The theme for the 2023 UNGA General Debate was, “Rebuilding trust and reigniting global solidarity: Accelerating action on the 2030 Agenda and its Sustainable Development Goals (SDGs) towards peace, prosperity, progress and sustainability for all”. This year’s forum was the first in four years absent any Covid-19 pandemic restrictions or mandates in place.

VP Alupo had also addressed the august 193-member body at the UN headquarters in New York in September 2022, while President Yoweri Museveni gave the country’s address via a remote video-link in 2021, as Covid-19 travel restrictions were still in place in the US, Uganda and across the world. The previous year, in 2020, world leaders did not travel to New York because of the pandemic, and Uganda’s deputy permanent representative of the UN gave the country’s address on behalf of the head of state.

During the address, VP Alupo reaffirmed Uganda’s position on regional integration, and touching upon the UNGA’s theme, the country’s steadfast commitment to global solidarity.
“We remain actively involved in regional initiatives, particularly those under the African Union (AU), the Intergovernmental Authority on Development (IGAD), East African Community (EAC) [and] the International Conference on the Great Lakes Region (ICGLR),” Alupo said.

With proper trading under the African Continental Free Trade Area (AfCFTA) beginning on January 1, 2021, Uganda has signalled its interest in March 2023 that it is also ready to start trading under the second phase of the AfCFTA’s Guided Trade Initiative (GTI). The country will look to increase its market penetration beyond the EAC, while full adoption of the GTI poises Uganda to also ramp up its market share in African markets outside the Common Market for Eastern and Southern Africa (COMESA).

Uganda would join its EAC counterparts, Kenya and Rwanda in the GTI, as intra-African trade is expected to increase significantly in a key sector for Uganda’s growth, namely manufacturing, but also address the involvement of one-half of the population in its economy, women.

“With the creation of the AfCFTA, women will participate in cross-border trade within the AfCFTA countries. However, work still needs to be done in Uganda to achieve full gender equality,” Alupo said in her UN address. “We are currently promoting value addition, value chain and public procurement from the various Uganda Women Entrepreneurship programmes.” “On economic empowerment, Uganda has embarked [upon] poverty alleviation programmes which target women and youth participation in the economy.”

While the AfCFTA establishes a preferential trade arrangement by eliminating trade barriers and boosting intra-Africa trade in the form of a free trade area, the GTI will test the operational, institutional, legal and trade policy environment under the AfCFTA agreement.
Uganda is the incoming chair of the Non-Aligned Movement (NAM) and will host the NAM’s heads of state and government at the 19th NAM Summit in Kampala from January 15-20, 2024, where it will closely work with other NAM countries to strengthen the organisation.

The following week, Kampala will again play hosts, for the Third South Summit, where it welcomes leaders of the G77 plus China from January 21-23, as it continues to support strengthening of South-South cooperation and triangular cooperation as well as North-South cooperation within the auspices of the UN.

Click here to see Vice President Jessica Alupo’s 78th UNGA General Debate address.

Pearl Marina: A New Vision for Living Rising on the Shoreline of Lake Victoria

0

Pearl Marina Estates, sited on the Garuga Peninsula, Lake Victoria in Entebbe, is an ambitious mixed-use development which developer, Centum Real Estate, says represents “a monumental leap forward for Uganda’s real estate sector.”

The project, covering nearly 400 acres, is being created with more than 3 km of lakefront views and is located 22 km from Entebbe International Airport and 32 km from Kampala. 

The sleek masterplan shows a wide variety of residential types, a marina, and ample peripheral service buildings, all curving around the peninsula. 

When finished, the Marina will encompass a variety of housing options from around $34,000 dollars for a studio  through three-bedroom bungalows at $280,000 to $330,000 for four-bedroom villas with a maid’s room. Everything is to be integrated into recreational, social and retail facilities. 

Residents will have access to such facilities as, landscaped gardens, swimming pools, clubhouse, a beach, the lakeside boardwalk and beach club within the Pearl Marina Estate.

“Our vision is to craft a sustainable city that allures both residents and businesses,” says Raphael Nyamai, the General Manager of Centum Real Estate. 

The company is a subsidiary of East Africa’s largest publicly listed investment company and the region’s biggest developer of housing and commercial projects.

Phase 1 of Pearl Marina was completed this year (2023), bringing 400 housing units and vital infrastructure components onstream on an investment of $50 million.

Centum is making plans for everything Pearl Marina residents need for contemporary living without leaving the shorefront community. 

The vision will be continued in Phase 2, for which it is seeking strategic investment in services. It emphasises Uganda’s steady economic growth and opportunity for investors wanting to benefit from government investment in the oil and gas industry. 

“We welcome investors captivated by residential properties, ranging from cosy one-bedroom units to spacious villas,” says Nyamai. “Additionally, we invite investments for office spaces, shopping centres, hotels, resorts, and logistics and warehousing zones. For those keen on crafting their dream homes, we offer residential plots within the master plan’s guidelines.”

Centum reserved more than 100 acres for an investment park to include light industry, dry warehousing, cold storage, a logistics hub as well as a business park. 

Between 3-5 acres are set aside for a phased shopping centre for essential services and to provide employment. 

In the longer term, Centum also has space for a 250-bed hospital and is in discussion with an international hospital operator which may want to build services to accommodate medical tourism such as neurology, renal and cardiovascular sciences. 

Meanwhile, a further 3-5 acres are reserved for a five-star hotel and school. The nearest comparable private teaching institution is some 20km away. 

Nyamai states, “The Pearl Marina Project signifies a monumental leap forward for Uganda’s real estate sector. It embraces a comprehensive approach to urban development, harmoniously blending residential and commercial zones within the masterplan.”

The impact of this project on the surrounding community has already been profound. Since its inception, the Pearl Marina Project has propelled a surge in property values, transforming the Garuga area into one of the most coveted residential suburbs in the bustling Kampala Metropolitan region.

“Pearl Marina has also emerged as a major employment hub, drawing over 90% of construction workers from the local neighbourhood,” Nyamai says. “At the peak of Phase One construction, more than 1,200 workers were directly or indirectly involved, engaged through contractors and subcontractors.”

Phase Two will have an even greater impact on local employment opportunities, the developer says.

In summary, according to Nyamai, Pearl Marina Estates attempts to transcend the conventional realm of real estate projects. 

“Pearl Marina is not just a real estate project; it’s a visionary lifestyle concept, a unique development in Uganda, promising to redefine urban living, foster sustainable growth, and enrich the lives of both residents and the wider community.”

Bank of Baroda plan to play a more substantial role in enhancing financial support

Shashi Dhar, Managing Director, Bank of Baroda (Uganda), talks to World Business Journal about the bank’s growth, and how offering mobile and internet banking products caters to Uganda’s rapidly changing demographic.

How did the bank achieve 35% growth in net income, and 22% revenue growth in 2022 within the current market dynamics?

Our growth in profitability during FY 2022 can be attributed to several factors, including enhancing our efficiencies, reducing interest payments and improving yields on advances. Regarding the notable growth in interest earnings, it was the result of a combination of factors, including a 16% credit growth in advances and an increase in interest rates globally. We also increased our prime lending rate by one point, which led to a 6-10% increase in interest income from borrower accounts. We have strategically targeted industries that leverage the country’s strengths, and have plans to diversify into emerging sectors like energy and hospitality.

How have tech improvements like BarodaConnect internet banking and Baroda M-Connect plus mobile banking enhanced customer experiences?

To ensure a seamless customer experience, we conducted two customer outreach programmes and received highly encouraging feedback. One finding is that many customers consider us a reliable bank, because we have not experienced a major cyberattack or fraud. This has provided customers reassurance and resulted in positive experiences.

Recently, we have made significant strides, such as automating Uganda Revenue Authority (URA) tax payments through our mobile banking and internet banking services, extended the functionality of our cards to operate in the US, UK and Canada, where the use of PINs in point-of-sale transactions is not mandatory. This expansion into new regions was made possible by adapting our cards to work with these technologies. Similarly, we have made our cards compatible with platforms like Jumia and Netflix, where customers do not require a CVV number or one-time passwords for transactions.

How does Bank of Baroda plan to play a more substantial role in enhancing financial support for small and medium-sized enterprises (SMEs) in Uganda?

We play a substantial role in enhancing financial support for SMEs in Uganda. Our strategy involves a strong focus on the manufacturing segment, which accounts for 47% of our portfolio, as well as the agriculture sector (26%). We continuously monitor emerging areas where entrepreneurs are eager to leverage the country’s strengths, and we are committed to identifying and funding such ventures to contribute to the nation’s development. Supporting SMEs is a key focus for us.

However, there are certain challenges that hinder our ability to fund SMEs effectively. One of these challenges is unique to Uganda and stems from the Financial Institutions Act, 2004, which restricts banks from lending beyond a certain share of their deposits. Specifically, the Act limits total lending to a maximum of 80% of the deposits, but practical considerations often lead banks to lend only up to 70%. This means that a significant portion of resources remains idle, incurring costs for the bank and, ultimately, higher costs for borrowers.

To address this issue, we hope for enabling provisions from the government and the Bank of Uganda (BoU) that would expand our lending capacity, allowing us to make better use of our resources and reduce borrowing costs for customers. Such a change would enhance the competitiveness of businesses and make previously unviable ventures commercially feasible due to lower interest rates.

In terms of policies, other than addressing the deposit-to-lending ratio, we believe that Uganda has significant potential, and the government‘s initiatives are generally positive. Higher capital requirements, as stipulated by the government and the BoU, provide depositors with confidence in the safety of their funds.

Overall, we believe that revisiting the deposit-to-lending ratio stipulation could significantly benefit the country by unlocking resources for various projects, including those of the government. 

How does the bank plan to evolve over the next 3-5 years?

In the next 3-5 years, Bank of Baroda envisions a future that builds upon its longstanding 70-year presence in Uganda. We are adapting to meet modern banking needs by diversifying into emerging sectors, supporting entrepreneurs and enhancing our tech offerings. Our ongoing investments in IT platforms will introduce innovative banking services in the coming years. We appreciate the support and guidance we have received from regulators and the government, which has allowed us to endure.

Additionally, we are considering opening offices in growing commercial hubs, as we remain dedicated to serving Uganda.

Tirupati is Engaging the Community as it Makes its Mark Across Uganda

0

Can you provide an overview of Tirupati Development Uganda?

Tirupati Development is a family-owned company that was established in Uganda in 2006, and chaired by Harshad Barot. The company operates primarily in the real estate development sector, specialising in the construction of shopping malls, housing estates, industrial parks and apartments. In addition to private development, Tirupati also operates as an official contractor, undertaking construction projects for the government of Uganda.

What projects are currently being undertaken by Tirupati, and how is the company’s approach to commercial condominium ownership different than its competitors?

We are currently in the final stages of constructing a 400-bed maternity and child complex at Masaka Regional Referral Hospital, on behalf of the government. The four-storeyed hospital will have an intensive care unit, two state-of-the-art theatres, gynaecology unit, labour and post-natal wards, and an antenatal and neonatal centre.

Our company has been at the forefront of introducing the concept of commercial condominium ownership in Uganda. Notable projects like Tirupati Ovino Market and Tirupati Mazima Mall exemplify this approach, enabling individuals to own units within shopping malls and industrial facilities. This innovative ownership model cultivates a shared sense of responsibility among stakeholders, fostering a distinct sense of community among property owners. We have ambitious plans to expand our portfolio with similar ventures tailored to a variety of industries, including an agricultural park in the future, thus making significant contributions to Uganda’s evolving business landscape.

Additionally, we have established the Tirupati Business Park, a sprawling 60,700-sq metre industrial park. This park has been designed to provide small and medium-sized enterprises (SMEs) with turnkey solutions for their operations. Currently, the park accommodates 150 warehouses, each dedicated to a unique industry. What sets our concept apart is our provision of all essential amenities required for businesses to flourish seamlessly, including reliable power connections, water supply and other vital infrastructure elements. As of today, our business park is home to a workforce of 2,000 individuals.

How is your organisation addressing the shortage of affordable real estate options in Uganda?

We have launched various initiatives within our business park. This includes the construction of budget-friendly apartments, the expansion of our business park with 253 new warehouses, and the creation of small-scale corporate offices tailored for mid-sized companies. This holistic ecosystem is designed to support SMEs by providing essential infrastructure and rental income opportunities, positively impacting Uganda’s housing and business landscapes. We anticipate completing the expansion within the next five years.

How does your company prioritise community development within its projects?

Community development is fundamental in each of the projects that we undertake. We closely engage with local leaders by respecting cultural values and fostering active communication with the community to highlight the benefits our projects. A significant part of our strategy revolves around ensuring the community understands the positive impact that our projects will have on future generations, including improvements in transportation and increases in property values. Additionally, through our NGO, Leela Foundation, we actively provide food resources to support the well-being of the elderly. We approach our projects with humility, viewing ourselves as partners working collaboratively with the community.

How do you assess the investment climate in Uganda, taking into account security, stability, governmental initiatives and overall business potential?

The investment prospects in Uganda are exceptionally promising. Uganda presents a diverse range of opportunities, catering to small-scale ventures, like manufacturing and larger endeavours. What makes Uganda particularly appealing is that significant returns can be achieved without requiring multimillion-dollar investments. Africa, as a whole, offers a unique landscape where minimal investment can yield substantial gains, with opportunities across various sectors.

Nevertheless, the perception remains that investing in Africa, including Uganda, involves a certain degree of risk or uncertainty. Some may not fully grasp the potential and success stories of ventures in East Africa. To change this perception, it is crucial to share the experiences of those similar to my father, who came from humble beginnings and achieved success through unwavering determination. Stories such as these are not fiction, but genuine accounts that underscore the untapped potential and opportunities that Uganda has to offer. In essence, Uganda’s investment landscape is a concealed treasure, awaiting both exploring and harnessing.

Amafh Farms: Pioneering Sustainable Macadamia Growth

0

Amafh Farms: Pioneering Sustainable Macadamia Growth

World Business Journal talks to Morvi Asim, Founder of Amafh Farms about the success of his macadamia-growing initiatives, the surprising benefits of the crop for climate mitigation and his plans for rapid, sustainable expansion. 

How has Amafh Farms evolved over the years?

Celebrating our 20th anniversary this year, Amafh Farms has planted approximately 700 acres of macadamia trees over the past two decades. This achievement has solidified Amafh Farms as a symbol of sustainable agriculture and economic empowerment, where the well-being of our farmers and the prosperity of our crops are nurtured in unison.

Can you elaborate on the progress of the project?

Central to our initiative is the Macadamia Outgrower Extension Project (MOGEP), aligning with NDP 3 and the United Nations Sustainable Development Group (UNSDG) goals. The initial investment phase, spanning five years with an investment exceeding $30 million, should benefit 25-30,000 farmers and create 1.5 million jobs across Uganda. Our collaboration with the Ministry of Agriculture, Animal Industry and Fisheries (MAAF) allowed us to plant an additional 10 million trees with a 70% subsidy to growers. Moreover, we have plans to secure 100% subsidy support through engagement with NGOs and government bodies.

How does your business model combat climate change, especially in terms of carbon sequestration?

Macadamia cultivation is a powerful tool in mitigating climate change. Our research indicates that each hectare of macadamia trees absorbs over 17 tons of carbon from the atmosphere annually. Additionally, the trees’ 70 to 90 lifespan ensures sustained carbon absorption over multiple decades. This aligns with our commitment to environmentally friendly agricultural practices.

Could you shed light on your macadamia processing factory and value-added offerings?

As the sole macadamia processing facility in Uganda, our factory, which initially processed 300 kg of macadamias per hour, is evolving to meet heightened market demands. By the end of 2023, we are set to unveil a new facility with a significantly enhanced capacity of 6 tons per hour. This expansion includes an automated nursery generating 2-3 million seedlings annually. Moreover, we’re establishing a comprehensive training center in Mityana, offering our farmers an extensive seven-day program, covering pre-planting techniques, harvesting methods, and more.

In terms of value addition, we presently offer five distinct macadamia flavours. Looking ahead, we plan to introduce an extensive range of 40 to 50 new value-added flavours and products under the Macarica brand next year. This product line will encompass bars, macadamia-flavored honey, cold-pressed oil, and more, showcasing the exceptional versatility of this remarkable crop.

Simi Mobile Factory is Building Mobile Devices for Africa – Including the Solar-Powered Tablets for Uganda’s Upcoming Census.

0

Simi Mobile Factory is Building Mobile Devices for Africa – Including the Solar-Powered Tablets for Uganda’s Upcoming Census. 

David Beecham Okwere, CEO, Simi Mobile Factory, talks to World Business Journal about the company’s striking expansion from a store to a mobile phone factory creating 2,500 units a day. 

Can you tell us about Simi Mobile’s development until today?

Simi Mobile’s journey began in 2016 with a modest retail store primarily focused on mobile phone sales. However, it was in 2019, driven by the surging demand for mobile devices, that we recognised the potential to enter the field of phone assembly. Equipped with vital market insights gained during a visit to a phone manufacturing facility in Ethiopia, we secured four acres of land here in Uganda.

With an initial $4 million investment, we acquired machinery, constructed facilities, provided training, procured materials, established critical infrastructure, and compensated our workforce.. 

Could you provide insights into your product lineup, capacity and the types of clients you serve?

Initially, our focus was on phones and smartphones but we have since diversified to include tablets, laptops, and other products operating across a spectrum of network technologies, from 2G to 4G so our users always stay connected.  Currently, we assemble 2,500 phones per day, with 70% going to  the domestic market and the remaining 30% exported to countries like Tanzania , Kenya and Morocco.

We serve both individual consumers and larger organisations such as the Uganda Bureau of Statistics (UBOS) currently preparing to use our solar-powered tablets to facilitate biometric data collection and data analysis during the upcoming population census.

Do you carry out work in the community? 

One notable initiative that exemplifies our commitment to impactful technology is the Ucasaf programme, a collaborative effort with the Uganda’s Communications Commission (UCC). which aims to benefit low-income households in rural villages. This began with a delivery of 1,000 tablets rising to 2,000 in the next order and 5,000 in the order after that, underscoring the program’s remarkable growth and its impact on communities.

What are Simi’s strategic growth plans for the future and how do you see your company’s role in shaping the African mobile market?

Simi Mobile’s strategic growth plans include expanding our workforce to 2,500 employees, increasing production capacity, and positioning Simi Mobile as a unique African brand in the mobile phone industry. Our goal is to become a source of pride for Africa, competing effectively with international brands while receiving essential support from the Ugandan government.

Uhome is Making Personal Tech for Ugandans and its East African Neighbours

0

Uhome is Making Personal Tech for Ugandans and its East African Neighbours

Jiakun Wang, Co-Founder Uhome Holdings talks to World Business Journal about how tax incentives help boost the company’s competitive edge and the MiOne-maker’s ambitious export targets.

Please tell us about Uhome and how it came into existence.

Uhome was established in 2021 as part of the Tian Tang Group’s expansion strategy into Uganda’s growing ICT and electronics market. The group has had a presence in Uganda for over 22 years across 27 industries, operating in smartphones, tablets, home appliances, and supply chain solutions. 

We have three stores at the moment and plan to open two more in Arua and Mbale by year-end. We’re also launching some franchise stores soon. 

We made a $100 million investment in our cutting-edge Mbale facility which employs around 500 people and manufactures up to 2,500 MiOne smartphones daily. 

In October, we’ll expand into smartwatches and tablets, emphasising our commitment to local tech manufacturing and adjusting production based on market demand.

What sets the MiOne brand apart in terms of its technological characteristics?

With a decade-long presence in the Middle East, MiOne has gained recognition for its feature phones and smartphones. In our feature phones, we prioritise an extended battery life, offering up to 14 days of usage on a single charge.

As for our smartphones, the key differentiators lie in our commitment to customisation, addressing the specific preferences of our local customers. These devices come pre-loaded with social media apps tailored to the market. Additionally, we’ve made substantial improvements in battery capacity and camera features to enhance overall quality.

Can you provide details regarding the origin of components used in your phone and smartphone production?

We fully assemble our phones and smartphones in Uganda and plan to start manufacturing plastic components by the end of this year. As part of our commitment to contributing to the ICT development of the country and the knowledge economy, we aim to localise software component manufacture within the next four to five years.

Could you provide details about the skills program in partnership with Makerere University, aimed at enhancing youth employability?

We have established a skills programme in collaboration with Makerere University to bolster the employability of young talent. We offer internships to students about to enter the job market. The programme lasts three months and typically accommodates 5-10 students per cycle. We assess their performance during this period and select the most suitable candidates based on their achievements and potential.

Where are the primary export destinations for Uhome products?

At present, our primary export destinations include neighbouring countries such as Congo and South Sudan. However, we have ambitious plans to further expand our export reach, with Kenya and Tanzania as our targets this year. We are currently in discussions with our clients to finalize these agreements. It’s worth noting that approximately 15 to 20 per cent of our production is dedicated to meeting export demands.

What advantages and challenges characterize the manufacturing sector in

Uganda?

In the manufacturing sector, we benefit from various advantages, including tax incentives that bolster our competitive edge. Additionally, regional export-oriented policies within the East African Community (EAC) provide us with a favourable environment. 

However, we face competition from companies that import ready-made phones and possess stronger brand recognition in the local market. We are actively working towards enhancing our brand visibility and aim to capture a 40 per cent market share in the next three to four years.

Kagga & Partners’ Engineering and Management Solutions Bring Innovation to oil and gas, Hydro and Road Projects alike

0

Kagga & Partners’ Engineering and Management Solutions Bring Innovation to oil and gas, Hydro and Road Projects alike

World Business Journal talks to Eng. Abdu Kagga, Chairman of Kagga & Partners (KAGGA), about his company’s growth from house painting to an international engineering consulting firm working across the infrastructure spectrum.

Could you please provide an overview of Kagga & Partners (KAGGA) company, including your company’s beginnings? 

I founded our company in 1974 when I was 30. We initially carried out modest projects such as house painting. However, during a period of political instability, we had to interrupt activities and relocate temporarily to Nairobi. Upon my return, in 1980, I reestablished KAGGA with a primary focus on water-related projects. This was driven by our recognition of their vital importance to local communities. However, as time evolved, so did our expertise. We diversified our portfolio, offering a wider range of engineering and management solutions across various sectors. Our transformative journey to becoming a prominent consulting firm has been characterised by resilience and adaptability.

Can you provide insights into the ongoing projects currently undertaken by your company? 

Our company is currently involved in a diverse array of projects spanning various sectors. 

In the oil and gas domain, we are engaged in the Kingfisher project, overseeing the construction of well pads and infield roads. 

In road construction, our attention is on the extensive Tororo—Mbale—Soroti—Lira—Kamdini Road Corridor, covering a distance of 340 km. 

Within the energy sector, our efforts are directed toward implementing the Resettlement Action Plan (RAP) and related services at the Isimba Hydropower Project, among other initiatives.

Could you please elaborate on your international collaborations and their significance? 

Beyond Uganda, we are actively contributing to projects in Mombasa, Tanzania, Djibouti, Ethiopia, and South Sudan, particularly in the construction of roads, water supply systems, and a One-Stop Border Post (OSBP), the new concept for immigration control and border management in the East Africa region. 

Additionally, we are engaged in Somaliland for the development of the Hargeisa Bypass Road project. Fostering international partnerships has played a crucial role in our company’s growth. A prime illustration of this is our collaboration with Acres International (now Hatch) in which we became involved in a number of ambitious hydropower projects, including the Owen Falls Hydro-Power Extension Project. Collaborating with Tullow Oil, Uganda, gave us the opportunity to take part in the dynamic oil and gas sector. 

These partnerships go beyond mere cooperation; they’re a conduit for knowledge exchange, enhancing safety standards and stimulating our collective progress in the competitive global landscape. We’re not just working together; we’re forging stronger bonds with international and regional allies, shaping industries, and innovating for the future.

What is your vision for the company in the coming three to five years?

 I cannot predict the future, but over the past two decades, I have been less involved in the day-to-day operations, and I can tell you we have a robust succession plan in place. We also aim to consolidate our existing operations rather than pursue extensive expansion.

Kyagalanyi Coffee: A Journey through Uganda’s Coffee Sector

0

Kyagalanyi Coffee: A Journey through Uganda’s Coffee Sector

World Business Journal talks to Jeremy Mpalampa, General Manager of Kyagalanyi Coffee, about what makes Ugandan coffee special, adapting to ever-changing global taste, market and regulatory requirements. 

How did Kyagalanyi Coffee get started?

Kyagalanyi Coffee, a subsidiary of the Swiss-based Volcafe, was created in 1992 during Uganda’s coffee market liberalisation. Pioneers in the field, we secured an early coffee export licence, initially focusing on central Uganda. This endeavour led to the establishment of our facility in Bugolobi. During this period, Uganda began exporting 2.5 to 3 million coffee bags a year. The market’s opening allowed private entities like ours to participate in exports, marking the start of our pivotal role in Uganda’s ever-evolving coffee sector.

Obura Peter
Volcafe – Kyagalanyi
Kampala, Uganda

How many countries does the company export to and what is your current market share?

Our central facility at Kampala Industrial and Business Park, Namanve, became operational in 2015 and today we export to over 33 countries. Our export volumes have risen to approximately 500,000 to 800,000 bags annually, constituting about 10 to 12% of Uganda’s total coffee exports.

What key qualities and characteristics set Ugandan coffee apart in the global market?

Ugandan coffee’s distinction lies in the fact that both Arabica and Robusta bean varieties offer unique flavours when grown at our higher altitudes, varieties. For instance, Robusta from the central region has a softer, less harsh profile with prominent dark chocolate notes, while high-altitude Arabicas like those from the Bugisu region or the Eastern and Western parts of the country, showcase diverse flavour profiles from citric and fruity to distinct chocolate. The unusual coexistence of both Robusta and Arabica crops within the same origin provides a continuous coffee flow, making Ugandan coffee unique in consistency and diversity.

Are there any shifts in preferences and demands both locally and internationally?

Yes. Customers are demanding both higher quality and responsibly sourced coffee. They seek transparency regarding the origin and production of their coffee, with a particular focus on traceability and sustainability. These are central to our approach. 

Additionally, the popularity of specialty-grade Ugandan coffee is growing, emphasising its unique traits. To meet these demands, we have enhanced processing techniques and farmer training. Traceability and sustainability are central to our approach, aligning with global coffee consumption trends.

Alum Maureen
Volcafe – Kyagalanyi
Kampala, Uganda

How is Kyagalanyi Coffee addressing the EU deforestation regulation and ensuring competitiveness in the European market?

Compliance with the EU Deforestation Regulation is crucial for exporters like us. From December 2024, all coffee entering the EU must have enhanced traceability and documentation confirming that it does not come from areas deforested since 2020. Non-compliance can incur substantial fines. We are actively engaged in industry-wide efforts, seeking solutions and partnerships to ensure adherence to these stringent requirements.

How is the company strategically positioned to remain competitive in the international market?

To address this challenge, the coffee industry is collectively adapting its supply chain to comply. We are actively involved in seeking solutions, including expanding traceability and sustainability programs with cooperatives and forming partnerships with organisations. While we have Rainforest Alliance certification for some of our exports, this represents only a portion. It’s evident that the industry must swiftly align with compliance requirements.

Q7: As we conclude, could you provide insights into the company’s upcoming strategies for the next 12 months, including those geared towards enhancing value?

We’re targeting exports of 600,000 bags and investing to enhance drying and bagging efficiency in our production lines. In terms of value addition, we’re expanding our existing brand, Big Gorilla, and introducing a new brand for the domestic market, Volcanic Republic, a blend of Robusta and Arabica finely crafted to suit diverse local taste preferences. 

Our unwavering commitment remains centred on delivering top-tier coffee quality while prioritising sustainability and traceability across our supply chain.

Supporting Oil and Gas Extraction in Uganda

0

Supporting Oil and Gas Extraction in Uganda

World Business Journal talks to Geoffrey Bihamaiso Baitwa, Group Managing Director of BRO Group, covering the company’s evolution from a logistics provider to Ugandans overseas to a major player in the Ugandan oil and gas exploration support sector. 

How has BRO Group evolved since its inception as Threeway Shipping?

In 1991, Threeway Shipping launched in the UK, offering Ugandans door-to-door repatriation logistics services and pound-to-shilling forex and money transfer. 

We initially transported goods by air to Africa but transitioned to shared container sea freight via Mombasa when this got too expensive. 

In 1996, we introduced an import-export service between Uganda and Mombasa to meet regional demand. 

In 2002, we founded Threeways Distribution and Transtrac, providing light and heavy transportation services before undertaking a 2019 corporate restructuring. This consolidated ownership into a holding company called the BRO Group.

How many trucks are currently in BRO Group’s fleet?

As of 2023, we have 70 heavy or light trucks and 20 to 30 lifting equipment units. 

What are some of BRO Group’s ongoing engagements and projects?

Our presence is expanding significantly due to the resurgence of the oil and gas sector and we aim to capture up to 50 per cent of this business.

BRO Group has developed a new strategy, leveraging experience, value, and comprehensive turnkey solutions. We target infrastructure development and essential drilling services support for projects as these usually have a lifespan of up to seven years. 

As a result, we have won several new contracts including the Tilenga and Kingfisher projects, collectively valued at over $40 million. 

Does BRO Group have any ongoing partnerships or expansion initiatives?

We formed a JV with Grindrod Africa Logistics Mauritius and will together handle the surplus workload from our successful bids, enabling us to take on more work.

Is the group involved in any projects outside of the oil and gas sector?

We are pursuing projects in mining and are in discussions to provide solutions to a Chinese company we have previously worked with in Karamoja. These are related to clinker mining.

What are the latest technological deployments enhancing BRO Group’s operations?

We offer clients interactive technologies so clients can track their shipments in real time and access information about their cargo integrity.

How does BRO Group envision its emerging role in the logistics industry?

Through our offices in Tanzania and Kenya, we are strategically positioned to capitalize on regional developments in energy and mining, maintaining a special focus on oil and gas. 

We also prioritize nurturing partnerships, such as the one we have with the South African company.

Looking ahead, what is the broader vision and trajectory that BRO Group aims to follow?

In addition to supporting energy and mining, we aim to re-engage in import-export services and door-to-door delivery.

Over the next two years, we plan to invest between $6-7 million (out of a total investment of $9 million) in a cargo terminal in Hoima. Groundbreaking is scheduled for this year, with the first phase set to be completed by the end of Q4. 

Ultimately, BRO Group aims to become a listed company within five years.”