Hope for Ugandan milk as Uganda, Algeria sign trade agreements

Algeria has agreed to buy Uganda's powdered milk, just a few days after Kenya announced plans to jealously protect its dairy farmers from imported milk products.

President Yoweri Museveni was in Algiers for a 3-day visit, and during the meeting between the delegations, it was revealed that at least 150 Algerian representatives of private and public organizations are to visit Uganda soon to explore available business opportunities. At least two agreements and five memoranda of understanding were signed between the two countries.

"We discussed issues on growing the prosperity of Africa; agreed to work together in the areas of trade, energy, education, agriculture, and counter-terrorism where they have experience in this, just like us," said Museveni.

Uganda is hoping to increase its agricultural exports to Algeria.

"We are looking at powdered milk which is already coming here, coffee, tea, and then products from Algeria of petroleum and petrochemicals," said Museveni from Algiers. 

Late last year, after a meeting with the Algerian ambassador to Uganda, Museveni said that the country had shown a willingness to buy powdered milk from Uganda worth $500 million. Frank Tumwebaze, the minister of Agriculture, Animal Industry and Fisheries said apart from milk, the MoUs signed cover several other items, like education, animal health, oil and gas, tourism, and trade.

"They will buy our powdered milk and coffee and later bananas. We shall in turn buy from them animal health drugs and others," he said.

Tumwebaze said what is needed now is improving production and product quality to match the requirements of the market. 

"Worry not anymore about the market for our dairy. The only condition is to perfect our value chain standards which so far have been approved!"

OIL REFINERY

An agreement between Sonatrach, the national oil company of Algeria, and the Uganda Oil Refinery Holding Company Ltd was signed with the aim of participating in the development of Uganda's refinery.

Among the areas to be agreed on is for the Algerian parastatal to acquire a stake in the Ugandan company, which is yet to receive financing to commence construction.

"We are looking at Algeria investing in our refinery.  We want to build an inland refinery. It is absolutely necessary because it will cut transport costs seeing that we are far away from the coast," said Museveni after the meeting with his host.

Dr Michael Mugerwa, general manager of Uganda Refinery Holding Company, and Sonatrach chairman and CEO, Toufik Hakkar each signed for their respective countries. The MoU covers oil and gas cooperation upstream, midstream (refining and petrochemicals), downstream, capacity building, and oil & gas Services. 

Sonatrach's core activities include research, production, transport and development, and marketing of hydrocarbons. Other MoUs signed are for cooperation in the field of trade, higher education, and scientific research. Other agreements were in the areas of energy, agriculture, and animal health.