Avani Global Agri Plans Shs110 Billion Investment in Uganda's Medicinal Crops

International agribusiness firm Avani Global Agri plans to invest about Shs109.5 billion in Uganda's emerging medicinal crops sector after identifying the country as its preferred production and processing hub following a four-year study across Africa and Asia.

International agribusiness firm Avani Global Agri plans to invest $30 million (Shs109.5 billion) in Uganda's emerging medicinal crops sector after identifying the country as its preferred production and processing hub following a four-year study across Africa and Asia.

The company has already invested $5 millionShs18.25 billion) and plans to inject an additional $25 million (Shs91.25 billion) into cultivation, processing and value addition, Managing Partner Dr Siva Mahesh Tanguutooru said during a visit to the State House Investors Protection Unit.

The investment, centred in Nwoya District, will focus on the commercial production of medicinal crops such as rosemary and turmeric for the global pharmaceutical, biotechnology and natural health products industries.

"We have already invested US$5 million in the last few months, and we are going to invest another US$25 million. That's our plan," Tanguutooru said.

He said Avani selected Uganda after evaluating growing conditions in Rwanda, Tanzania, Kenya, Morocco, Tunisia, India and Indonesia.

"The reports came out pretty well that Uganda is the best country in the world in terms of the quality of the products whatever we are growing. Hence we have chosen Uganda," he said.

Unlike traditional agricultural investments targeting food crops, Avani's business model focuses on high-value medicinal plants with export potential.

"Our products are not regular food crops. Rather, they are cash-rich crops that can change the income of farmers at the lower level. These are medicinal crops that actually go to the pharma industry, the biotech industry and the medicinal industry," Tanguutooru said.

The company has already established more than 700 acres of rosemary and tamarind in Nwoya District and is conducting research on additional medicinal crops that could be introduced into Uganda.

Beyond cultivation, Avani plans to establish processing facilities in Uganda to increase value addition before export.

"We are here not just for cultivation, but rather to do world-class processing here in Uganda," Tanguutooru said.

He said the company had proposed decentralised primary processing centres so farmers can dry crops closer to production areas, reducing transport costs and increasing incomes.

"We requested the government to decentralise the primary processing at local levels so that the drying can happen over there and the logistics can help farmers increase their income," he said.

The investment received backing from the State House Investors Protection Unit, which pledged to work with government agencies to eliminate administrative delays.

Head of the unit, Col Edith Nakalema, said President Museveni established the office to ensure investors are not frustrated by bureaucracy.

"Our work is to ensure that investors who have already added value are not delayed by anybody in public office," Nakalema said.

She said Avani's investment demonstrates the commercial potential of crops that have received limited attention in Uganda despite their medicinal and export value.

"They have already invested over US$5 million in agribusiness. They have started with crops that we had not so much paid attention to," she said, adding that officials from the Ministry of Agriculture had acknowledged the untapped potential of rosemary and tamarind.

Nakalema said the State House Investors Protection Unit would coordinate with ministries, departments and agencies to facilitate the investment and ensure government processes do not slow implementation.

"The President was very intentional in establishing this unit so that every investor that comes to Uganda is protected. Our work is to coordinate with all government ministries, departments and agencies to ensure investments succeed," she said.

In addition to agriculture, Tanguutooru said Avani is exploring an electric mobility project that would convert conventional motorcycles to electric power, targeting Uganda's large fleet of commercial two-wheelers used by low- and middle-income earners.

If fully realised, the Shs109.5 billion investment could position Uganda as a regional hub for cultivating and processing medicinal crops while diversifying the country's agricultural exports beyond traditional commodities such as coffee, tea and maize.