The Ugandan government has signed a Public-Private Partnership Agreement (PPA) with Bukona Agro Processors Ltd to support the country’s Biofuels Blending Programme, under the Ministry of Energy and Mineral Development (MEMD). The partnership aims to promote clean energy while boosting income for thousands of smallholder farmers.
The agreement, signed on June 18, 2025, at Asinge ‘A’ Village in Malaba Town Council, Tororo District, will see over 10,000 farmers from Nwoya District supply 30,000 tonnes of maize per year. This maize will be processed into ethanol and blended with petrol at Bukona’s new fuel blending depot in Malaba.
Speaking on behalf of MEMD Permanent Secretary Eng. Irene Bateebe, ministry official Mr. Hatimu Muyanja described the deal as a strong link between energy policy and grassroots development.
“This partnership is a shining example of how our national energy policy, specifically the Biofuels Blending Programme, translates into tangible, life-changing benefits at the grassroots level,” Eng. Bateebe said on July 18.
She added that maize, cassava, and sugarcane—key ingredients for ethanol—will be sourced from Village Savings and Loan Associations (VSLAs), giving farmers a guaranteed market, predictable income, and economic stability.
Mr. Muyanja also noted that blending ethanol with petrol at the border reduces transport costs and makes operations more efficient.
Mr. Godfrey Ocitti Odoki, Nwoya District Commercial Officer, said the district has over 170 registered farmer associations and more than 4,800 VSLAs, with each sub-county having over 400 groups. These will contribute 15,000 tonnes of maize per season to the program.
He acknowledged challenges such as climate change and limited funding, but said Centenary Bank credit lines and new irrigation technologies are being introduced to help.
Mr. Praviin Kekal, Managing Director of Bukona Agro Processors Ltd, said the Malaba depot, which sits on 8.5 acres, has already received an investment of Shs2.5 billion to Shs3 billion. He emphasized that the company’s key operations remain in Nwoya.
“Our first agreement with MEMD allows us to procure ethanol from different distillers and blend it at Malaba. Once we are certain of the market, we’ll begin production,” Mr. Kekal said. “We will procure raw materials directly from VSLAs at guaranteed prices and partner with Centenary Bank to ensure access to seeds and inputs.”
The Malaba facility is expected to blend about 450 million litres of petrol annually. At a 5% ethanol blend ratio, it will need 22 million litres of ethanol per year. If the blend rises to 20%, demand will jump to 88 million litres.
Mr. Gerald Kyobe, Principal Assistant Secretary in Nwoya District, who represented the Chief Administrative Officer, welcomed the deal.
“Bukona has already contributed significantly to the local economy. This new partnership is another milestone for the district and the country at large,” he said.
