Uganda begins ethanol fuel blending in boost to farmers, energy security

Uganda has launched a national biofuels blending programme that will see petrol mixed with ethanol derived from local crops like maize, cassava, and sugarcane—an effort the government says will enhance energy security and boost incomes for farmers across the country.The programme, announced last week by the Ministry of Energy and Mineral Development (MEMD), will begin with a 5% ethanol blend (E5) and gradually scale up to 20%, in line with the Biofuels Act (2020) and accompanying regulations.

“This is just the beginning. We are at 5%, but we can quadruple the market. Just imagine where this can go,” said Praviin Kekal, Managing Director of Bukona Agro Processors Ltd, one of the companies licensed to supply blended fuel.Four fuel facilities located at Uganda’s border points have been licensed to handle over 110 million litres of petrol annually, all of which will be blended with ethanol. These include plants in Busia, Malaba, Mutukula, and Kawuku in Entebbe.

Lifeline for farmers
The government says the initiative will provide a ready market for agricultural producers, particularly cassava and sugarcane farmers who have long struggled with low prices and limited value addition.In Teso Sub-region, cassava farmers recently saw prices fall to Shs150 per kilogram for fresh produce and Shs400 for dried cassava, leading to massive losses. Similarly, Busoga’s sugarcane farmers have called for government support amid persistent market challenges and low returns.

“With the new innovations, cassava and sugarcane will now have high market value,” said Godfrey Biriwali, Chairperson of the Greater Busoga Cassava Growers’ Association. “Farmers will be encouraged to expand cultivation and put idle land to use.”The blending programme is aligned with Uganda’s long-term energy and development plans, including Vision 2040 and the National Energy Policy (2023). The Biofuels (Licensing) Regulations (2022) provide the framework for implementation.Energy Minister Ruth Nankabirwa said the programme also anticipates increased maize production, with a push towards irrigation to support dry-season farming.“We are thinking about irrigation because during the dry season, production goes down. But we’ve had our ears on the ground for ten years,” she said.

Energy independence and stability
The government sees the move as a strategic response to global fuel supply shocks and a step toward long-term energy independence.Daudi Migereko, Chairperson of the National Biofuels Committee, said: “Producing ethanol that can be blended with imported fuel prepares Uganda for possible global supply disruptions, especially given ongoing instability in the Middle East.”

“If we start producing our own petroleum products, we won’t have to depend on imported refined fuels,” he added.Following the launch, the industry will undergo a six-month incubation period, ending on December 31, 2025, to allow facilities to reach full operational capacity.

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