The Ugandan government is to earn over 100 billion Ug. Shillings ($60 million) in taxes annually once the oil palm production in Kalangala kicks off. A total of 4,000 hectares of oil palm have been planted in Bugala Islands by investors operating under Oil Palm Uganda Limited.
Another 1,800 hectares by smallholders and out-growers have been established. "The initial plan was to plant 10,000 hectares of oil palm, but Indonesian investor BIDCO Oil Refineries has planted 4,000 hectares. But with production in full capacity, the country will earn over Sh100 billion per year from this investment," said Connie Magomu, the Vegetable Oil Development Project project coordinator.
She said out of the required 10,000 hectares of land, about 7,000 had been secured. Under the agreement, BIDCO was to plant 6,500 hectares of oil palm while out-growers would have 3,500.
"We have given out over Sh500 million ($300,000) in loans to small holders and out-growers through Kalangala Oil Palm Growers Trust for land clearing, planting, and buying fertilisers and seedlings," Magomu said.
New Vision
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June 15, 2007
Ugandan oil palm project kicks off
Categories commercial farming, palm oil, Uganda
