TRENDS AND IMPACTS OF FOREIGN INVESTMENT IN DEVELOPING COUNTRY AGRICULTURE

CHART 3
Value chain for fish processing in Uganda
FISHERS
ICE
PRODUCERS
FISH
COLLECTION
BOATS
ICE
PRODUCERS
FISH
TRANSPORTERS/
SUPPLIERS
Sources: Nyombi K, Bolwig S (2003); Uganda: Uganda National Exports Strategy, 2007.
Of the three fish factories that started
operating in the 1980s, the two domestic-owned
factories (Gomba Fish Industries Ltd and Ngege
Ltd) have recently closed due to poor financial
management (Ngege Ltd) and the depleting fish
stocks (Gomba Fish Industries Ltd).
Eleven of the operational fish factories were
established after 2000. The new companies in the
sector are established to maximize the fish catch.
For example, seven fish processing factories were
established in 2005, a year before the quantity
of fish exported started declining. Five of these
companies have one owner, who established each
company on a different landing site to maximize
the raw material catch.
Surprisingly, however, even with the
dwindling fish stocks, the sector is attracting
new investment: three new companies were
established between 2007 and 2009. These
companies are Wildcatch Fisheries Ltd, established
in 2007 and fishing from Lake Albert; Lake
Bounty Ltd, established in 2008 and using
premises rented from Ngege Ltd and IFTRA (U)
PACKAGING
MATERIAL
Export Quality
Non-Export Quality
Part 3: Policies for attracting FDI and impacts
on national economic development
PRODUCT
ANALYSIS
INDUSTRIAL
PROCESSING
LOCAL
TRADERS/
PROCESSORS
INTERNATIONAL
MARKETS
REGIONAL
MARKETS
LOCAL
CONSUMPTION
Ltd, established in 2009 and using premises
rented from Gomba Fisheries Ltd Furthermore,
it is notable that some foreign companies in this
sector have diversified into other sectors that are
not related to the fish value chain. For example,
Hwan Sung (U) Ltd, a Korean TNC, also engages
in the manufacturing of furniture, while the
Alpha Group of Companies (Riyaz Kurji) produces
meat and dairy products.
The latest entrant in this sector is the Source
of the Nile Fish Farm Ltd (SON). The enterprise
is pilot testing a commercial fish farm to
meet the increasing demand for fish, which is
partly attributable to the reducing fish stocks
(Uganda, UIA, 2007). SON is jointly owned by
the Lake Harvest Group, from Luxembourg and
Greenfields, a Belgian owned enterprise, based in
Uganda.
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UGANDA