Invest in chilli sauce business

Chilli is a fast growing crop in Uganda that takes about three months to mature.
It can be harvested throughout the year depending on the availability of water. It is drought resistant and has a high demand on local and export market.

Besides being exported in its raw form, it can fetch more revenue if it is processed into several forms such as chilli sauce, chilli pickles and various medicinal products.

According to Ms Sheila Mugyenzi, Deputy Director Communications Uganda Investment Authority (UIA), this is one investment idea Ugandans can inject money because it is highly demanded.

Ms Mugyenzi shares: “Once the Chilies are processed, they may be sold locally in super markets, whole sale shops, groceries and hotels. They can also be exported.”

Capital investment
Ms Mugyenzi says for one to start such an investment project requires operating capital of about $26,955 (Shs94.5 million).
This will help in the production of about 500 litres per day which is translated into 15,000 litres per month.
An investment of this nature has an annual profitability worth $125,941 (Shs445 million).

Raw materials
The commodities can be widely accessed from the growing areas mainly from Central and Northern Uganda.
The chilli growing areas in Lango include: Ngai and Otwal sub-counties in Oyam Abako, Barr and Amac sub-counties in Lira.
Others are Puranga in Pader and most parts of Kitgum in Acholi sub-region.

Equipment
So, how does one start to process chilli sauce? According to UIA, one needs the basic tools and equipment required for processing chilli sauce such as a food-blender, sauce pan, graduated jug and clean bottles.

Government incentives
Government has put in place incentives for investment in agro-processing for export.
Ms Mugyenzi shares: “If one exports 80 per cent of the product after satisfying all other criteria as regards scale of production, they will then be exempted from corporation tax for 10 years.”