• Dei Biopharma opens a $50 million cassava plant in Namasagali, Kamuli
• Output will supply its Matugga pharmaceutical factory and export markets
• Project needs 500 tons of cassava per day, raising supply and food security concerns

Dei Biopharma, a pharmaceutical and biotechnology company, has commissioned a cassava processing plant in Namasagali in the Kamuli district. In a statement released on its website on Wednesday, November 19, the company said the facility required a $50 million investment.

The unit will produce pharmaceutical-grade cassava starch, glucose, maltose, and other derivatives used in the manufacture of medicines, capsules, beverages, and food products. Its output will supply Dei Biopharma’s pharmaceutical plant in Matugga near Kampala, which already has 30 partially operational production lines, as well as export markets.

“Our decision to invest in starch production is strategic. It aims to make Uganda competitive in drug manufacturing by reducing dependence on imported inputs,” said Matthias Magoola, founder and CEO of Dei Biopharma.

The investment also creates a new outlet for producers, with a need for 500 tons of cassava per day. To secure raw material supply, the company has already integrated more than 3,000 farmers into its sourcing network across the Busoga, Bukedi, Lango, and Teso regions.

However, this non-food use of cassava may raise concerns. In 2024, the FAO warned that diverting food crops to bioethanol production (non-food use) could reduce the availability of staple foods on local markets, drive up prices, and make access more difficult for part of the population.

In this context, the challenge will be to balance rising non-food industrial demand with the need to guarantee sustainable household access to a staple crop essential for food security. According to the FAO, cassava production in Uganda averaged 2.2 million tons per year between 2019 and 2023.