Faridah Kulabako
17 June 2011
Malaysia, the largest palm oil producing country in the world is seeking an opportunity to export its palm oil and related products to Uganda as it moves to strengthen its market position.
Uganda, like the other four countries in the East African region, have recently received attention from investors as a lucrative market as they seek to tap into a market of over 130 million people following the launch of the common market in July last year.
Speaking during a Malaysia Palm Oil Council Trade Seminar in Kampala on Tuesday, Mr Rahim Zainol Zainuddin noted that a trade relationship between the two countries will cement their ties and help improve the countries’ economic dealings.
With over 4.8 million hactares of palm oil, Malaysia produces over 17 million tonnes of palm oil products and earns $20 billion in export earnings.
Other big producers of palm oil and its products include Indonesia, Argentina and Brazil. Palm oil yields a number of products, including vegetable oil, chocolates, soaps, vaseline and vegetable ghee, among others.
Currently, Bidco, with an 8,000-hectare palm oil plantation in Kalangala, is the largest palm oil producer in Uganda.
If Malaysia begins exporting to Uganda, this would mean increased competition which might in turn benefit consumers through reduced prices.
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