By David Rupiny

Oranagate, a joint venture between Uganda’s Southgate Properties Limited and Denmark’s Orana AS, is establishing a fruit-processing and bottling factory in Uganda, valued at USD 6 million.

The factory aims to process Uganda’s fruits into shelf-stable export products while giving small manufacturers access to industrial production without heavy upfront investment.

At full capacity, the factory will process five metric tonnes of fruits like mangoes, pineapples, passion fruit, and tomatoes per hour; that is 12,000 tonnes per annum.

The Minister of Trade and Industry, Francis Mwebesa, toured the factory and remarked that the factory, by processing fruits will add value, create jobs, create market for farmers, and expand the economy.

According to the country director of Southgate Properties, Richard Munyaneza, the factory will absorb fruit surplus, process it into pulp, and export it.

Said Munyaneza: “The factory aims to at addressing a structural market gap between the farmer and the market by adding value and creating shelf-stable products for regional distribution and export”.

Munyaneza added that they plan to work with cooperative groups and out-growers and to establish a nucleus farm for training and organic farming.

The managing director of Orana AS, Neils Osterberg, said his company will focus on quality assurance and market access.

“Our contribution is to make sure that the quality that comes out of the factory is perfect and meets international market standards”.

The factory’s model includes not only producing its own brands but also manufacturing products on behalf of other firms, fit for Ugandan companies with innovative ideas but lacking capital for machinery and technical expertise.

The import is that a start-up can walk in with a product concept, develop a product using Oranagate’s technical expertise and machinery, and leave with a finished product, without investing in a factory, hence reducing upfront costs.

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