NWOYA, August 7, 2025 – Bukona Agro Processors Limited recently entered into a public-private partnership [PPP] agreement with the Ministry of Energy and Mineral Development and Nwoya District Local Government, aimed at strengthening agricultural value chains through the supply of grains and cassava for ethanol production.
The agreement follows the licensing of the Bukona-Nwoya–Malaba ethanol blending facility, located in Malaba Town Council, Tororo district, by the Energy ministry in accordance with the Biofuels Act [as amended]. The Act governs the production, storage, transportation, and blending of biofuels with petroleum products.
Under the terms of the PPP, farmers in Nwoya district will be required to supply over 30,000 tonnes of grains and cassava annually to Bukona Agro Processors Limited. These raw materials will be used in ethanol production at the company’s plant in Koch Amar Sub-county.
Nwoya District currently boasts 4,800 Village Savings and Loan Associations [VSLAs], 170 farmer associations, and 16 cooperative societies engaged in the cultivation of grains, cassava, and other crops.
Praviin Kekal, Director of Bukona Agro Processors Limited, expressed optimism about the initiative, saying the partnership would provide a guaranteed market for local farmers, thereby enhancing the agricultural value chain.
To support farmers, Bukona Agro Processors Limited has also entered into an agreement with Centenary Bank to offer agricultural loans to farmer groups, with the aim of increasing production capacity.
Godfrey Odoki Ocitti, the Nwoya District Commercial Officer, who signed the agreement on behalf of local farmers, said the district will provide both technical and logistical support to ensure quality produce, thereby securing better prices for farmers.
Odoki noted that the district’s 36 agro-processing plants will be designated as official collection and storage points. He added that agricultural extension workers stationed across all 11 sub-counties would provide farmers with the necessary technical support.
“This partnership will enable farmers to transition into the money economy by providing them with a stable market offering better prices for their produce,” Odoki said.
Representing the Ministry of Energy, Energy Officer Hatim Muyanja stated that Bukona Agro Processors is among 8 of 11 licensed companies authorised to blend ethanol with petroleum in Uganda. Currently, four ethanol blending plants are under construction at the country’s major entry points: Malaba, Mutukula, Mahathi, and Busia.
Muyanja explained that all petroleum entering Uganda will be blended with ethanol by licensed operators before reaching the market, as part of efforts to combat climate change.
The Bukona ethanol blending facility is initially expected to blend five million litres of petroleum annually, with projections to scale up to 20 million litres within the next three to five years.
https://thecooperator.news/lop-advocates-for-fair-sugarcane-pricing/
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