Revolutionizing Uganda’s Dairy Sector: A USD 35 Million Boost for Pearl Dairy Farms Ltd
By The Public Lens
In a groundbreaking move, Pearl Dairy Farms Ltd, a leading East African dairy processor, has secured USD 35 million in senior debt financing to upgrade its powdered milk plant in Uganda and acquire a packing facility in Kenya.
This investment, provided by the International Finance Corporation (IFC) and Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), is set to transform the dairy sector in Uganda and Kenya.
The dairy sector is a vital component of Uganda’s economy, employing 72% of the population and contributing 24.1% to the GDP however, it faces challenges such as seasonal fluctuations in raw milk supplies, underutilized processing capacity, and quality issues limiting international trade.
To address these challenges, the Uganda Dairy Development Authority (DDA) launched the Dairy Policy Action Plan in August 2022, aimed at boosting consumption, incentivizing production, improving quality, and accessing new markets.
Pearl Dairy Farms Ltd’s CEO, Amit Sagar, expressed his enthusiasm for the investment, stating, “This facility is a critical milestone for Pearl Dairy Farms Ltd and demonstrates our commitment to driving growth and excellence in the dairy sector. With IFC and FMO’s support, we are poised to scale our impact, empower more smallholder farmers, enhance food security, and foster sustainable growth.”
The investment will have a significant impact on both Kenya and Uganda, improving access to the raw milk market for smallholder farmers.
Pearl Dairy Farms Ltd’s Dairy Development Program, supported by IFC, will benefit over 15,000 local farmers by providing training on best practices and data access to enhance productivity and profitability.
Delphos Chairman and CEO, Bart Turtelboom, highlighted the broader economic impact, stating, “Pearl Dairy Farms Ltd exemplifies how investment in modernizing the dairy value chain creates significant economic returns for communities and countries.
IFC and FMO’s financing will enable Pearl Dairy Farms Ltd to expand across the continent, achieving inclusive growth and substantial economic benefits.”
This investment is a testament to the potential of Uganda’s dairy sector and its contribution to sustainable agricultural development in East Africa.
As Pearl Dairy Farms Ltd expands its operations, it is expected to strengthen food security in the region and fortify the dairy supply chain against macroeconomic shocks.
