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New Agricultural Investment Initiative Secures $120M Dairy Off-Take Agreement, Transforming Uganda’s Dairy Sector

Amos Dairies Limited processing plant in Lyantonde, Uganda: Photo credit: Amos Dairies LTD

A groundbreaking new social enterprise initiative has been launched to empower dairy farmers in Uganda, backed by a $120 million off-take agreement with Amos Dairies Ltd. The initiative, driven by ForAfrika Social Enterprise, is designed to revolutionise the dairy supply chain enabling emerging commercial farmers to scale production and secure a better livelihood.

ForAfrika Social Enterprise is ForAfrika’s dedicated social enterprise arm, which aims to drive long-term economic transformation through strategic investments and sustainable business models. This deal represents a significant milestone in impact investment, ensuring a stable revenue stream for thousands of farmers while generating economic growth across the region.

ForAfrika Social Enterprise has structured a financing model that enables farmers to access resources through an innovative, cashless credit system by means of an app. This model allows farmers to use voucherised loans to access essential supplies like supplementary feed, veterinary services, and equipment through vetted suppliers. The cash backing these loans is invested in local businesses that fulfil the farmers' needs, supporting the local economy while ensuring the availability of critical goods and services.

ForAfrika Social Enterprise operates the payment platform that ‘banks’ the farmer and controls the flow of cash throughout the ecosystem.

Loan repayments are deducted from payments received from Amos Dairies, reducing financial risk for both farmers and investors. ForAfrika’s Social Enterprise Hub is at the heart of this ecosystem, providing storage, value addition, and fulfilling the supply to Amos, further strengthening the financial stability and sustainability of the model.

“By securing this off-take agreement upfront, we have de-risked the supply chain, ensuring farmers have guaranteed buyers and predictable income.”

- Simon McGregor, CEO of ForAfrika Social Enterprise

Simon McGregor, CEO of ForAfrika Social Enterprise, says: “By securing this off-take agreement upfront, we have de-risked the supply chain, ensuring farmers have guaranteed buyers and predictable income. This initiative is not only increasing milk production but also strengthening the entire agricultural ecosystem.”

Amos Dairies Ltd is Uganda’s third-largest dairy processor with an installed capacity to process 600,000 litres of raw milk per day. The off-take agreement presents the potential to supply up to 144 million litres annually, helping Amos scale production while ensuring stable market demand for farmers.

“The partnership with ForAfrika Social Enterprise is a game-changer for Uganda’s dairy industry.”

- Theodora Marimo, CEO of Amos Dairies Ltd

Theodora Marimo, CEO of Amos Dairies Ltd, says: "The partnership with ForAfrika Social Enterprise is a game-changer for Uganda’s dairy industry. By securing a stable supply of high-quality milk and equipping farmers with the tools they need to succeed, we are strengthening the entire value chain. With this initiative, we’re not only meeting growing market demand but also uplifting thousands of small-scale farmers and their families. It’s a win-win for the sector and the economy at large."

Farmers selected to participate will undergo extensive training in enhanced production techniques and business skills to improve both production quality and efficiency, while suppliers have been carefully vetted to ensure high standards.

The programme benefits not only the farmers but also local suppliers, service providers, and their families, creating a ripple effect of economic empowerment.

Farmers receive loans to purchase essential inputs, with repayments and interest automatically deducted as a percentage of their dairy income. This ensures long-term financial sustainability.

One participating farmer, Yosam Rutembesa Mpora, had this to say: “This programme will change everything for us. We will now have access to the tools and finance that we need to increase the volume and quality of our milk production.”

“ForAfrika Social Enterprise is redefining social enterprise through a dual return on investment approach.”

- Simon McGregor, CEO of ForAfrika Social Enterprise

“ForAfrika Social Enterprise is redefining social enterprise through a dual return on investment approach,” explains McGregor. “This dual return comprises both secured revenue through off-take agreements like this one and reinvestment into development where ForAfrika Social Enterprise profits are cycled back into ForAfrika’s broader mission, advancing communities from emergency relief to economic resilience.”

“ForAfrika has a forty year heritage of supporting African communities from emergencies to self-sustainability,” says McGregor “ForAfrika Social Enterprise takes that a step further by providing communities with a platform to thrive.”

Building on the success of this initiative, ForAfrika Social Enterprise is set to launch similar projects in Mozambique and Angola within the next 12 months. These expansions will follow the same model, driving economic transformation across multiple agricultural sectors.

About ForAfrika Social Enterprise

ForAfrika Social Enterprise serves as the impact-driven investment arm of ForAfrika, extending the groundwork laid by the ForAfrika Humanitarian and Development division by transitioning communities from self-sustainability to commercial viability. ForAfrika Social Enterprise utilises innovative financing and strategic partnerships to create scalable models designed for long-term impact throughout Africa.

For media inquiries, interviews, or further information, please contact:
Cindy van Niekerk
[email protected]

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