Mr Charles Ssenfuma checks oil palm fruit bunches on August 27, 2024. PHOTO/DENIS SSEBWAMI
The long-anticipated oil palm harvest in Buvuma District has begun to bear fruit, literally, as the National Oil Palm Project (NOPP) confirms that more than 1,000 acres of oil palm are now yielding harvests.
With Uganda’s annual vegetable oil import bill reaching almost Shs1.3 trillion ($350 million), this development is expected to reduce the country’s dependence on imports and empower local farmers with consistent income streams.
Ms Suzan Lakwonyero, the project manager of the National Oil Palm Project under the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), at the weekend told this publication that 1,250 acres of oil palm seeds were planted in April 2021.
“The first harvest started in October 2024, and by the end of April 2025, we had harvested 160,373 kilogrammes from 159 farmers, including 42 women who collectively earned Shs107.8 million,” she explained.
A private investor harvested an additional 290,000 kilogrammes in the same period. The yield is expected to double as the palms continue to mature.
“Each acre is projected to produce between 250 to 300 kilogrammes per month, translating to approximately 312,500 kilogrammes annually from the cultivated acreage,” Ms Lakwonyero explained.
Oil palm trees take six to 12 years to reach full maturity, but even in their early stages, they offer significant economic benefits.
In Buvuma District, about 506 hectares are currently producing, and as these trees age, productivity is expected to surge further.
Transforming agriculture
The Buvuma initiative falls under the broader National Oil Palm Project (NOPP), which is part of the National Oilseed Project (NOSP) running from 2021 to 2027. Funded by loans from the International Fund for Agricultural Development (IFAD) and the OPEC Fund for International Development (OFID), the project seeks to drive rural transformation through the commercialisation of oilseed value chains, thereby uplifting the livelihoods of smallholder farmers.
Maj Gen David Kasura Kyomukama, the permanent secretary at MAAIF, emphasised the urgency of scaling up local production.
"Uganda currently produces only a quarter of its vegetable oil needs. The deficit, driven by increasing demand and limited local production, makes initiatives like NOPP a game changer for the economy,” he said.
Mr Chris Guminsiriza, the national manager of NOPP, added that Uganda plans to open 960,000 acres annually for oil palm.
“Our goal is to increase production by 126 metric tonnes of vegetable oil every year and reach 156 metric tonnes by 2028. We’re also developing a 2,500-kilometre road network across 21 districts to support this expansion,” he stated.
In Buvuma alone, the government plans to construct 858 kilometres of new roads by 2027, contributing to job creation and better market access. This will further aid farmers to move quickly to their firms compared to when there were no any good roads.
Oil extraction rates from palm fruit range between 12 percent and 18 percent with Kalangala leading at 23 percent.
On average, seven kilogrammes of palm fruit produce one litre of crude oil. In Kalangala, only 4.4 kilogrammes are needed to produce the same amount.
“With just half an acre, a farmer can earn up to Shs6 million per month. This crop is not only sustainable but self-financing, with loan repayment expected by the 12th year and a productive lifespan of 25 years,” Mr Kyomukama said.
Ms Lakwonyero added that as the crop matures, production costs decline and profit margins widen, making oil palm an attractive long-term investment for smallholders.
Logistics for future harvests
To streamline operations, NOPP has opened 32 kilometres of farm roads for fruit collection and constructed harvesting platforms in farmers’ fields. A private sector-led initiative is building a weighing bridge, and collection centres are being established.
“We are also training farmers, setting up a price negotiation committee, and coordinating logistics. As yields increase, more trucks will be added to meet transport needs,” said Ms Lakwonyero. However, not all is smooth sailing.
Funding shortfalls and delays in compensating landowners, especially bibanja holders, remain critical issues.
“We are still waiting for the Ministry of Finance to release reflows from Kalangala to support new out-grower schemes in areas like Kyamuswa County,” she noted.
Ms Lakwenyero said farmer organisations have been formed to manage oil palm businesses, with MAAIF maintaining a regulatory role. She added that the National Agricultural Research Organisation (Naro) is also actively engaged in updating extension manuals and monitoring disease outbreaks to ensure healthy crops.
Government’s commitment
Mr Paul Mwanja, the commissioner of finance and planning at the Ministry of Finance, Planning, and Economic Development (MOFPED), reiterated the government’s dedication to meeting its financial commitments.
“We agreed with Bidco Oil Refineries to develop a vertically integrated oil palm growing and processing investment,” he said.
Mr Mwanja added: “The government is responsible for securing 40,000 acres of land, 26,500 hectares from government allocations and 13,500 hectares from smallholder out-growers.
To date, 16,348 hectares have been acquired, leaving a balance of 23,652 hectares to be secured.” Still, land compensation remains underfunded. In Sango Bay in Kyotera District alone, Shs23 billion is required, but only Shs3.3 billion was allocated in the last financial year.
Mr Mwanja has,however, assured stakeholders that this will be addressed through supplementary budgets as permitted by the Public Finance Management Act.
“It’s not the government’s intention to leave these matters unresolved. We are prioritising them, and we believe the upcoming financial year will help rectify the gaps,” he said.
Local farmers speak out
Ms Margret Acheng, a farmer in Buvuma, anticipates a good harvest from her plantations. She, however, urged the government to pay them in time.
‘’The first lot harvest is good, I have so far got two tonnes of coconuts and I'm positive about 400 kilogrammes will come from it,” she said.
Ms Acheng added: “I’m only disappointed with the failure to get money in time.’’
Mr Matia Kalange, the mobiliser of the cooperatives in Buvuma, said the farmers have been affected mostly due to the failure to have a mill that could add value to their harvested coconuts.
“We don’t have a mill factory, the coconuts are harvested and taken to Kalangala to remove the crude oil which is taken to Jinja, all these expenses are paid by the farmer yet we earn less,’’ he said.
