Business
May 31st, 2025

Dutch to construct $20M animal feeds factory as Col. Nakalema assures investors of security

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A group picture of officials, the Kingdom of Netherlands Ambassador Frederieke Quisspel and the Head State House Investors Protection Unit after the meeting. (Photo Milton Niinga)

By Milton Niinga

Kampala — The Kingdom of the Netherlands has pledged to construct a $20 million (over UGX 72 billion) animal feeds factory in Uganda, aiming to meet the growing demand for quality animal feeds among livestock farmers.  Frederieke Quispel, the Ambassador of the Netherlands to Uganda, announced the investment on Friday, stating that it is expected to significantly boost the country’s animal feed industry by providing high-quality inputs to farmers—contributing to the growth of the agricultural sector.
"The Netherlands and Uganda have been natural partners. It’s no coincidence that the Netherlands remains one of the largest direct investors in Uganda. We are now planning to construct a UGX 72 billion ($20 million) animal feeds factory, which will be the largest in the East African region," Quispel said.


The Kingdom of the Netherlands Ambassador Frederieke Quisspel and the Head State House Investors' Protection Unit (SHIP) during the meeting engage. (Photo by Milton Niinga) 

Speaking to the press after a meeting with Col. Edith Nakalema, Head of the State House Investors’ Protection Unit (SHIPU), at Lumumba Avenue in Nakasero, Kampala, Quispel said they were informed that the high cost of imported animal feeds continues to hinder farmers' efforts to increase yields and add value to their production. 
"This will be our second facility, following the existing fish feeds factory in Jinja. The new factory will produce feeds for poultry, swine, and dairy livestock, supporting sustainable production and enabling exports beyond Uganda," she added.

Netherlands Committed to Agriculture Support
The Netherlands has financed programs worth over €80 million in the past four years, targeting smallholder farmers, communities, and individuals to boost agricultural productivity in Uganda. 
"We’ve trained farmers to engage in commercial agriculture, even on small acreages. The introduction of the Parish Development Model (PDM) complements our goal to lift local communities out of poverty, which we are proud to support," Quispel noted.
"I pledge to continue supporting investment in Uganda so both countries can mutually benefit across all sectors of the economy," she emphasized.


Head State House Investors' Protection Unit Edith Nakalema speaking during the meeting to protect investors against corrupt officials in the government system. (Photo by Milton Niinga)

A boost to Uganda’s animal feed industry 
The construction of the animal feeds factory marks a significant development for Uganda’s rapidly growing animal feed industry. 
Andrew Byaruhanga, Policy Officer for Trade, Investment, and Economic Diplomacy at the Netherlands Embassy, said the factory will support the livestock sector—a key source of income for many Ugandan farmers. 
"With this new factory, farmers will gain access to high-quality animal feed, improving livestock health and productivity," Byaruhanga said.

He added that the factory will:
Create job opportunities—both during construction and once operational.
Increase local production capacity—reducing reliance on imports and saving foreign exchange.

Col. Nakalema: Uganda Is Safe for Investment 
Col. Edith Nakalema, credited the country’s peace and security as enablers of sustainable investment and pledged continued protection for investors from unscrupulous individuals and corrupt intermediaries. 
She took the ambassador through the newly launched Uganda Electronic Investors Protection Portal, designed to foster direct engagement between investors and President Yoweri Kaguta Museveni, even before they set foot in Uganda. 
"This initiative allows investors to engage directly with the President and register companies online before meeting anyone physically in Uganda," Nakalema explained.
"It enhances transparency, integrity, and eliminates corruption in bureaucratic processes." 
She emphasized that Uganda offers a favorable climate and fertile soils for commercial agriculture and urged for increased support, especially in human capital development and agricultural mechanization. 
Nakalema also acknowledged Koudijs, a Dutch company, for leading efforts to facilitate animal feed production and support farmers in Uganda.


Walid Kule assistant commissioner for business registration at URSB, Arthur Kwesiga Commissioner ICT URSB and Andrew Byaruhanda policy officer trade and investment. (Photo by Milton Niinga)

URSB Calls for investor compliance
Walid Kule, Assistant Commissioner for Business Registration at the Uganda Registration Services Bureau (URSB), urged foreign investors to register their companies for better monitoring and facilitation. 
"Some foreign companies have been operating illegally, and when they face public complaints, the government struggles to intervene due to lack of records," Kule noted.

He added that several companies failed to file tax returns with the Uganda Revenue Authority (URA), despite enjoying tax holidays during their initial years of operation.

Torch Media Africa

Published By | DICKENS TIHARIHONDIJO

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