State House backs Avani’s industrialisation drive with investor protection assurance

Uganda’s drive to transform its economy through industrialisation, value addition and green technology has received another vote of confidence after Avani Global Agri and Avani Smarts Farm announced plans to significantly expand their investments in the country.

The company, which has already committed an initial investment of US$5 million, is positioning Uganda as a regional hub for life sciences molecule extraction from agricultural products while simultaneously venturing into electric mobility, a combination that aligns closely with the government’s ambitions under the Fourth National Development Plan (NDP IV).

During a meeting at the State House Investors Protection Unit (SHIPU) headquarters in Kampala, the Head of SHIPU, Col. Edith Nakalema, described the investment as more than a commercial venture, saying it represents a strategic partnership capable of accelerating Uganda’s economic transformation.

She praised the investors for choosing Uganda as the base for their regional operations, noting that their confidence demonstrates growing international trust in the country’s investment environment.

“Your trust is our highest currency as an investment destination. In turn, we dedicate ourselves to protecting your assets and your operations. At SHIPU, you have a dedicated shield and strategic partner,” Col. Nakalema said.

Moving Beyond Raw Commodity Exports

Uganda has for decades relied heavily on exporting unprocessed agricultural commodities, limiting the country’s earnings despite its abundant agricultural potential.

Avani’s investment reflects a growing shift towards value addition, where agricultural products are processed into higher-value exports before reaching international markets.

The company has already established more than 700 acres of turmeric and rosemary in Nwoya District. These crops will supply industries producing wellness, pharmaceutical, food and medicinal products after undergoing advanced processing.

Col. Nakalema noted that this approach supports the government’s strategy of increasing export earnings through manufacturing rather than relying solely on primary agricultural production.

“Agriculture has long been the heartbeat of Uganda. However, primary production is only one chapter of our agricultural story. Our national focus is now on industrial value addition, and your investment fits perfectly within that vision,” she said.

Building a Global Life Sciences Hub

Avani Smarts Farm Director Dr. Siva Mahesh unveiled an ambitious vision of positioning Uganda as one of the world’s leading centres for extracting high-value molecules from agricultural products.

The company plans to expand cultivation from the current 700 acres to 5,000 acres before eventually scaling production to between 10,000 and 30,000 acres through partnerships with outgrower farmers.

Central to this vision is the construction of a world-class extraction facility in Kampala that will process raw agricultural materials sourced from Uganda and neighbouring countries.

“We want Uganda to become the life sciences molecule extraction hub for the world, not just Africa,” Dr. Mahesh said.

If realised, the project could significantly deepen Uganda’s agro-industrial value chains while creating demand for specialised skills in biotechnology, food science and pharmaceutical manufacturing.

Outgrower Model Could Transform Rural Economies

Beyond large-scale farming, the company intends to integrate thousands of smallholder farmers into commercial production through an outgrower model.

Officials at the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) believe this approach could increase rural incomes while expanding Uganda’s export capacity.

The ministry’s Undersecretary, Aacha Mary Orikiriza, pledged government support through research, irrigation, mechanisation, climate-smart agriculture and extension services.

She also said the ministry would coordinate with relevant agencies to facilitate licensing, export clearance, tax incentives and other regulatory requirements to ensure the investment proceeds smoothly.

The outgrower model is expected to create employment opportunities, improve farmer incomes and increase production of high-value export crops across Northern Uganda.

Investment Extends Into Electric Mobility

Beyond agriculture, Avani is also entering Uganda’s rapidly growing electric mobility industry.

Rather than focusing only on manufacturing new electric motorcycles, the company intends to convert existing petrol-powered motorcycles into electric bikes—an approach designed to lower adoption costs for riders.

“Our goal is to make EV conversion affordable. Riders should not have to buy a new motorcycle to embrace electric mobility,” Dr. Mahesh explained.

The proposal comes as Uganda intensifies efforts to build an electric mobility ecosystem that includes vehicle manufacturing, charging infrastructure and battery-swapping networks.

Government Sees EVs as Economic Opportunity

The Commissioner for Transport Regulation and Safety at the Ministry of Works and Transport, Winstone Katushabe, said electric mobility has become a national development priority.

He noted that government investments, alongside initiatives such as local electric vehicle manufacturing, expanding charging infrastructure and increased private-sector participation, are laying the foundation for a cleaner transport sector.

However, he acknowledged that financing, public awareness and additional private investment remain essential to accelerate adoption.

“We need more investment, public awareness and financing to accelerate the transition. The government will continue putting in place policies and regulations that support the private sector and make electric mobility a success in Uganda,” Katushabe said.

SHIPU Reinforces Investor Protection

For investors, one of the key concerns remains regulatory certainty and efficient government coordination.

Col. Nakalema reiterated SHIPU’s commitment to protecting investments by eliminating unnecessary bureaucracy and facilitating collaboration across government agencies.

“Our mandate is anchored on zero tolerance for bureaucracy and effective coordination. That is why SHIPU exists—to ensure investors can operate with confidence,” she said.

A Broader Signal for Uganda’s Investment Landscape

The Avani investment illustrates Uganda’s broader economic strategy of attracting investors who bring technology, industrial capacity and innovation rather than focusing solely on resource extraction.

By combining agro-processing, advanced manufacturing, renewable energy and inclusive farming models, the project aligns with Uganda’s ambition to industrialise its agricultural sector, increase exports and create higher-value jobs.

If successfully implemented, the initiative could strengthen Uganda’s position as a regional destination for agro-industrial investment while accelerating the country’s transition towards a greener and more diversified economy.