Lira oil-producing firm receives sh1b

Jan 27, 2018

The money is to help the company procure more seeds and provide a market for the farmers in northern Uganda.

PIC: Werikke (second-left) receives cooking oil from Omara. (Credit: Hudson Apunyo)

BUSINESS

KAMPALA - Ngetta Tropical Holdings, a company producing vegetable oil from sunflower, has received a soft loan of sh1b from Microfinance Support Centre to boost its production.

Trade state minister Michael Werikhe presented a dummy cheque from John Peter Mujuni, the executive director of Microfinance Support Centre to Paul Omara, the executive director of Ngetta Tropical Holdings.

The event, which took place at Golden Tulip Hotel, Kampala recently, also saw the company launch its Virgin Gold pure vegetable cooking oil brand in the market.  

Werikhe commended Ngetta Tropical Holdings for venturing into the sunflower oil production.

The minister said sunflower, which is regarded as an environmentally-friendly export crop being promoted to alleviate poverty, is used to improve health and boost the cosmetics industry.

Werikhe said the demand for the product has continued to grow following the drop in cotton production that was a source of oil. He said the world total production was nearly 16 billion tonnes with Ukraine, Russia and Argentina the largest producers.

Uganda's demand stands at 120,000 metric tonnes against a production capacity of only 40,000 metric tonnes.

While launching the product, Werikhe said the product is purified virgin sunflower cooking oil and promised governments support to the initiative.

Mujuni said the money is to help the company procure more seeds and provide a market for the farmers in northern Uganda.

Omara said that the project will create employment opportunities. He said they have 33 co-operatives with 24,000 farmers and employ about 100 staff, some on temporary basis.

Connie Magomu Masaba, the manager of Vegetable Oil Development Project in the agriculture ministry, said the ministry is proud to be associated with Ngetta Tropical Holdings, which is producing pure Ugandan oil from Ugandan soil and by Ugandan sons.

One litre costs sh8500, three at sh25,000, five litres go for sh35,000, while 20 litres cost sh125,000.

The ceremony was attended by lands minister Betty Amongi and South Africa's Ambassador to Uganda Maj. Gen. (rtd) Lekoa Solly Mollo, among others.

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