Uganda’s agricultural sector, which is the backbone of the economy, is poised for a significant turnaround with the signing of a landmark agreement to establish a major organic fertiliser factory.
This strategic partnership between the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) and Itracom Fertilisers from Burundi, signed on Thursday, August 20, 2025, in Kampala, is set to revolutionise farming practices, boost productivity, and drive a new era of sustainable economic growth.
The factory, with a production capacity of 250,000 metric tons per year, will directly address the long-standing challenge of poor soil fertility and marks a decisive step toward self-sufficiency and improved food security.
The signing of the agreement was witnessed by among others, the Prime Minister Robbinah Nabbanja, who said this partnership was made possible by the guidance of H.E President Yoweri Kaguta Museveni, to supplement other efforts aimed at increasing agricultural productivity for our farmers across the country. “With this factory in place, Uganda will join other countries in the region, like Burundi and Tanzania, in large-scale production of organic fertilisers from cow dung and additional essential minerals,” Nabbanja said.
From Challenge to Opportunity
For years, Uganda’s agricultural potential has been held back by several key factors, including declining soil fertility, reliance on expensive, often low-quality imported inputs, and vulnerability to climate change. But the new organic fertiliser factory, backed by a substantial USD180 million investment, provides a powerful solution to these issues.
By using locally sourced cow dung and minerals, the factory will produce a high-quality, organic product that is tailored to Uganda’s soil needs. This not only ensures a reliable supply of fertiliser but also reduces the country’s dependence on costly imports, thereby keeping more money within the local economy.
The Economic Ripple Effect
The impact of this project extends far beyond the agricultural sector. The establishment of the factory will create a new value chain, linking cattle farmers in the cattle corridor to the manufacturing process by providing a guaranteed market for their cow dung.
This will create a new source of income for livestock farmers, empowering them to participate more actively in the national economy.
The 18-month construction period and the factory’s subsequent operations will also generate numerous jobs, from skilled labour in the plant to logistics and supply chain management. This aligns with the government’s broader goals of job creation and poverty reduction.
Furthermore, the government’s commitment to an offtake agreement, guaranteeing the purchase of the locally manufactured fertiliser, provides crucial market certainty for Itracom, ensuring the project’s success.
This is a model of public-private partnership that de-risks a major investment and encourages other private sector players to invest in Uganda’s agricultural infrastructure.
Sustainable Growth and Long-Term Vision
The MAAIF’s Permanent Secretary, Maj. Gen. David Kasura-Kyomukama, highlighted the factory as a direct solution to the critical need for quality fertiliser inputs, a key component in the ministry’s vision for a more productive agricultural sector. He noted that organic fertilisers are known to improve soil health, increase water retention, and enhance crop resilience, making them a cornerstone of sustainable, climate-smart agriculture.
This move, according to Gen. Kasura, is a strategic step toward building a resilient agricultural sector that can withstand climate shocks and consistently produce high yields.
He explained that by focusing on improved soil fertility, this project lays the groundwork for further advancements in irrigation, mechanisation, and improved genetics, all of which are essential for unlocking Uganda’s full agricultural potential.
The establishment of this factory is more than a one-off project; it is a transformative catalyst for Uganda’s agricultural and economic landscape. It signals a shift towards a knowledge-based, value-added, and sustainable approach to farming that will benefit millions of smallholder farmers and position Uganda as a leader in agricultural innovation and food security on the continent.