Investment Prospect- Once in a Lifetime Opportunity
What’s the Opportunity?
Peak Initiatives aims to set up and establish its large-scale Palm Oil Outgrower Project in Nwoya, Uganda. Establishing and operating under the management of…, as a venture partner Peak Initiatives will be focused on capturing a significant market share of Palm Oil in the country in the near future.
With an estimated Crude Palm Oil (CPO) consumption of 50,000 tons per day, Uganda’s local cooking oil and soap producers are 90% import-dependent. BIDCO, however, is an exception with 20% of local supply covered through plantation in Kalangala. Therefore, local production is still in its infancy and can be easily leveraged with this demand, fertile land, and favorable climate.
There is an untapped market potential in the EAC region if exploited with a production boost then will lessen the local demand-supply gap. Along with vegetable oil, it has a high potential to drive agro-industrialization in the country.
Market Size and Market Fit
Uganda and its neighbors consume about 3 million tons of vegetable oil, Crude Palm Oil (CPO) which accounts for the preponderant share of the 1.4 million tons of imports to the 6 countries (IFAD, 2017).
Uganda’s Palm Oil Consumption is set to reach 264 Thousand Metric Tons by 2026 from 234 Thousand Metric Tons and is expected to rise 2.1% per year. Since 2017, the demand rose 0.6% year on year reaching 17,310 Thousand Metric Tons. India, Indonesia, and Nigeria respectively came in numbers 2, 3, and 4 in the ranking.
Ample resources and huge land availability enabling large-scale farming are a must to get the most out of this investment opportunity. Though labor-intensive in nature, large-scale farming not only reduces the cost of production but also encourages technological resources for increased efficiency and improved results.
Business Case
Northern Uganda has for over three decades been afflicted by extreme levels of poverty occasioned characterized by war, disease, poor economic conditions. Non of the interventions by different Government and Non Government bodies has delivered a clincher to poverty alleviation as poverty continues to bite so hard. Palm oil project is a a game changer that will ensure transformation of economic livelihoods of thousands of people in form of outgrowers and employment on the farms