BUSINESS STRATEGY

International taste and nutrition company opens first Ugandan plant

By our African Marketing Confederation News Team | 2024

Move by Irish-based Kerry is part of a broader pattern to move small R&D and manufacturing facilities closer to African high–growth markets.

Kerry, the Irish-based provider of taste and nutrition solutions to more than 50 international markets, has officially opened a new US$5-million manufacturing facility in Uganda. This will support local food and beverage manufacturers.

The facility expands Kerry’s capacity in East Africa, where it already has manufacturing plants in Kenya, Rwanda and Tanzania. The latter opened in November 2023.

Kerry’s Global CEO, Edmond Scanlon, cuts a ribbon to inaugurate the factory in Tanzania in November 2023.

Photo credit: Kerry

Among the guests at the opening of the Ugandan facility, which is located at Banda in Kampala, were the Vice President of Africa and the Middle East for Kerry, Peter Dillane, and Kevin Colgan, the Irish Ambassador to Uganda.

Colgan said that, apart from boosting investment and manufacturing capacity in Uganda, the plant would provide science and technology transfer to help the country grow its food industry.

Moving closer to high-growth markets

Kerry has been investing heavily in sub-Saharan Africa. According to Trendtype, the London-based emerging markets consultancy, the move is part of a broader pattern in the ingredients sector to move small R&D and manufacturing facilities closer to high-growth markets in Africa.

The Irish-based company has a significant presence in Africa, with its main facility in Durban, South Africa and sales offices in Lagos and Nairobi.

In late 2021, Kerry acquired Rwanda-based Afribon, which specialises in the development, production and marketing of food flavours. It had five production sites in Africa: Rwanda, Cameroon, Kenya, Uganda and Tanzania.

Uganda’s The Independent newspaper reports that, at the recent Uganda-European Union Business Summit held in Kampala, several companies from Europe promised to partner with companies in Uganda. Agreements for over 100-million Euros (US$109-million) worth of projects were signed between member states of the EU, Ugandan government, and the private sector.

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