Palm oil producer Wilmar launches plantation in Uganda

mongabay.com
July 29, 2009



Wilmar, one of the world's largest palm oil traders, is investing $10 million to establish an oil palm plantation in Kalangala, Uganda over the next three years, reports Bernama, Malaysia's state new agency. The investment is the first in Uganda by a Malaysian oil palm developer.

Maggie Kigozi told Bernama that Wilmar is expected to expand the plantation project, increasing its investment.

"Uganda has vast tracks of land, suitable for oil palm plantations," Kigozi was quoted as saying. "It's a huge opportunity."



"We hope more Malaysian investors will come here to invest not only in the plantation sector but also in tourism and agriculture."

In recent years Uganda has looked toward foreign investors to launch an industrial palm oil industry in the country but has been thwarted by protests over environmental concerns. A plan to log thousands of hectares of rainforest on Bugala island in Lake Victoria for a palm oil plantation was strongly opposed and subsequently shelved in 2007. It's unclear whether Wilmar's plantation, which will be located in the same region, will face similar worries.

Wilmar's investment comes as the Malaysian palm oil industry has signaled interest in expanding overseas. Facing land constraints at home, Malaysian oil palm developers, including FELDA, Malaysia's development agency, have in the past two years announced projects in Papua New Guinea, Liberia, Brazil, and Indonesia.






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CITATION:
mongabay.com (July 29, 2009).

Palm oil producer Wilmar launches plantation in Uganda.

http://news.mongabay.com/2009/0729-palm_oil_uganda.html