News

Uganda Bets on Maize-Based Bioethanol in Push for Cleaner Fuel

Uganda Bets on Maize-Based Bioethanol in Push for Cleaner Fuel
Tuesday, 22 July 2025 13:55

• Uganda partners with Bukona Agro Processors to produce bioethanol from maize.
• Over 10,000 farmers will supply 30,000 tonnes of maize annually for blending fuel.
• Experts warn of rising food insecurity as maize shifts from food to fuel use.

Uganda joins a growing list of African nations turning to biofuels to speed up their energy transition. While the shift brings economic opportunity, it also raises red flags over food security.

On July 20, Uganda’s Ministry of Energy and Mining Development (MEMD) signed a public-private partnership with Bukona Agro Processors Ltd, a key player in the bioethanol sector. The deal aims to boost the country's supply of raw materials for producing ethanol, which Uganda plans to blend with imported petrol.

According to local newspaper The Monitor, the partnership will involve over 10,000 small-scale farmers in Nwoya district. These farmers will supply 30,000 tonnes of maize per year, which Bukona will process into ethanol. The ethanol will then be blended with petrol at a new facility in Malaba.

“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,” said Eng. Irene Bateebe, Permanent Secretary at the Ministry of Energy.

This project follows the government’s announcement on 29 June to mandate a 5% ethanol blend in all petrol sold nationwide, with a target of increasing it to 20% depending on availability. Authorities aim to reduce the nearly $2 billion annual fuel import bill, promote cleaner energy, and cut emissions.

For farmers, the Bukona project offers a stable market for maize and a chance to boost income. Demand for ethanol is expected to grow as blending increases.

Praviin Kekal, Managing Director of Bukona, said the facility can handle 450 million litres of petrol annually. He noted that at a 5% blend rate, the plant would need roughly 22 million litres of ethanol, with demand climbing to 88 million litres if the blend reaches 20%.

However, using food crops like maize for fuel raises tough questions. The FAO warned in 2024 that bioethanol production could reduce food availability, push up prices, and make staple foods less accessible for vulnerable populations.

Uganda faces this risk head-on. Food security in the country remains fragile. According to a July 16 report by the Alliance for a Green Revolution in Africa (AGRA), the number of Ugandans suffering from inadequate food consumption has more than doubled since October 2024—from 8 million to 18 million people, or 42% of the population.

The stakes are high. Bukona’s maize-based bioethanol initiative could lead to similar projects using cassava or sugarcane, both of which are already used globally for ethanol.

Ugandan authorities now face a delicate balancing act—meeting their green energy goals without deepening the country’s food crisis, especially in rural and vulnerable areas.

This article was initially published in French by Stéphanas Assocle

Edited in English by Ange Jason Quenum

 

On the same topic
Oil executives warn conflict may cause prolonged global supply disruptions Hormuz chokepoint tightens supply; Brent holds near $99 per...
Russia suspends ammonium nitrate export licenses to secure domestic supply Global fertilizer markets face strain from China curbs, geopolitical...
International tennis tournaments in Gaborone attracted over 7,000 visitors and supported more than 200 seasonal jobs Tourism accounts for about...
Experts meet from March 23–26 ahead of ministerial decisions on March 27 Discussions focus on telecom harmonization, digital regulation and...
Most Read
01

Firms move beyond payments toward integrated SME platforms Services include invoicing, inve...

African fintechs are moving beyond payments - and into business operations
02

Cameroon signs MoUs for $1.5 billion waste-to-energy projects Plans target waste treat...

Cameroon Signs $1.5 Billion Waste-to-Energy MoUs Amid Urban Sanitation Strain
03

MTN Mobile Money Zambia partnered with Indo Zambia Bank to enable payments via bank POS terminals....

MTN Zambia Links Mobile Money to Bank POS in New Partnership
04

UBA UK, BII sign intent to expand trade finance in Africa Partnership targets funding gaps for in...

UBA, British International Investment explore Africa trade finance deal
05

The BCEAO now allows UEMOA citizens abroad to open CFA franc accounts under the same conditions as...

West Africa Targets Diaspora Funds With New Banking Access Rules
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.