Uganda is hoping to double its annual production of palm oil with the development of a second plantation.

The first plantation, located on Lake Victoria’s Bugala Island, southern Uganda, produces 40 000 tons of palm oil a year.

Bidco Uganda has already started planting on its second operation, on Buvuma Island. Bloomberg reports that the company envisages having 1 000 trees this year, expanding that to 5 000 ha by 2025. Half of the trees will be planted for the company by smallholder farmers.

The government is providing the land under an investment deal aimed at reducing its reliance on imports of palm oil, which is used in the manufacture of food, soap, cosmetics and biofuels.

According to a 2018 report, Uganda imports about 200 000 tons of palm oil a year, mainly from Malaysia and Indonesia.

9 March 2021
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