Uganda’s agricultural sector remains pivotal to its economy, employing about 72% of the population and contributing 24.1% to GDP. The dairy industry, valued at US$3.8 billion, generates US$106.2 million annually from exports, crucial for regional food security.
However, challenges persist, including fluctuating milk supplies, underutilized processing capacity, informal trade, and quality issues hindering international market access. Uganda’s Dairy Development Authority launched the Dairy Policy Action Plan in August 2022 to address these issues through policy interventions.
In a significant development, Delphos secured USD 35 million in debt financing for Pearl Dairy Farms to enhance its powdered milk plant in Uganda and acquire a packing facility in Kenya. This investment, backed by IFC and FMO, aims to bolster the dairy sector across East Africa, benefiting over 15,000 local farmers through enhanced productivity and market access.
“This investment marks a milestone for Pearl Dairy Farms, enabling us to expand our impact and support more smallholder farmers,” stated CEO Amit Sagar. Delphos CEO Bart Turtelboom highlighted the economic benefits, emphasizing the investment’s role in promoting inclusive growth and sustainable agricultural development in the region.
The financing underscores efforts to strengthen the dairy supply chain, enhance food security, and foster economic resilience in East Africa.