Uganda Electricity Distribution Company Limited (UEDCL) has been given two weeks to connect the Dei BioPharma Ltd high-tech cassava processing plant in Kamuli to the national power grid, after prolonged electricity shortages hampered full-scale production.
According to Dr Mathias Magoola Dei Biopharma has invested $50 million investment in the project that aims to transform the Busoga region into a regional biotech and agro-industrial hub.
The connection to the power grid is a major step expected to enable Dei BioPharma Ltd to begin full-scale cassava processing and increase demand for cassava from farmers across Uganda to $10billion investment in the next 10 years perio.
Energy Minister Dr Monica Musenero issued the directive during a visit to the facility on Wednesday, where she met UEDCL officials to find a solution to the plant’s power challenges.
Dr Musenero said the government will not allow a major industrial investment to remain idle for lack of electricity.
“I am a hands-on minister, and my coming to this facility demonstrates that. I called my team at UEDCL to find a solution to this problem,” she said.
She said the government had given itself two weeks to address the power challenge at the plant.
“We are not only working to solve the power problem at this plant. We want to ensure that unreliable electricity supply is no longer a challenge to industries,” Dr Musenero added.
The facility, owned by Dei BioPharma proprietor Dr Matthias Magoola, has been ready for commercial production for about one and a half years but has depended on expensive diesel generators. President Museveni commissioned the facility on 20 November last year.
Dr Magoola, who took the minister on a guided tour of the plant, said the company spends about Shs15 million to run one generator for a single shift, making full production too costly.
“It has been painful having completed this facility for about one and a half years. We started production in June last year when we began testing it, but we have been using very expensive means of running generators,” Dr Magoola said.
He said the plant requires more than 5 megawatts (MW) to operate at full capacity but is not currently connected to the national power grid.
Dr Magoola said after the visit, that the UEDCL committed to connecting the plant and upgrading the infrastructure, including replacing conductors, within two weeks.
“They have assured us that this will be done in two weeks. When you come back here, you will be shocked because we are going to start full production,” he said.
The lack of a grid connection has also limited Dei BioPharma’s ability to process cassava consistently.
Dr Magoola said the plant requires approximately 500 metric tonnes of cassava daily, sourced from across Busoga and other areas including Teso, Arua, Gulu, Lira and Bukedea. Production has, however, been limited to about once a week because of power constraints.
“We have been buying cassava from everywhere, but because of power we produce once a week. Even with that production, we are not getting the required quantities of cassava,” Dr Magoola said.
He said full-scale production would create about 50,000 direct jobs and provide a major market for cassava farmers.
Dei BioPharma is also encouraging farmers to continue growing cassava, with plans to manufacture more than 100 products from the crop and eventually expand processing to other crops, including sweet potatoes and maize.
The Kamuli facility uses advanced technology to process cassava into pharmaceutical-grade starch and industrial sugars, including glucose, maltose and fructose.
Dr Magoola said the products will support the Dei BioPharma pharmaceutical and vaccine manufacturing complex in Matugga, Wakiso District, while the rest will be exported.
“Our campus in Matugga cannot produce vaccines and drugs without the products we produce here,” he said.
The Dei Group plans to invest up to US$10 billion in advanced manufacturing facilities, including pharmaceutical, veterinary vaccine and biotechnology production.
Dr Magoola said all these facilities will require a reliable and adequate electricity supply to operate.
The Dei Biopharma Advanced Agro-Processing and Biotech Park at Namasagali, Kamuli District, was launched by President Museveni on 20 November last year. The President also commissioned the Dei Biopharma cassava starch manufacturing plant, a US$50 million investment, marking a decisive step in Uganda’s quest for pharmaceutical self-reliance.
The factory produces pharmaceutical-grade starch, glucose and maltose for the pharmaceutical and food industries. Dr Magoola said the facility will extract more than 100 derivatives from cassava, maize and potatoes and requires 500 metric tonnes of cassava daily.
The project forms part of a larger US$10 billion investment plan to establish a biotech hub, including a 1,000-bed hospital for sickle-cell and cancer treatment and a veterinary vaccine facility.
President Museveni, who has consistently supported Dr Magoola’s pharmaceutical ventures, has praised the entrepreneur’s innovation.
The starch factory is one component of Dei Biopharma’s broader agro-industrial blueprint on its 5,000-acre estate in Kamuli. The fully integrated hub will include an organic fertiliser plant producing inputs from animal waste and a biotechnology complex for veterinary vaccines, including a foot-and-mouth disease vaccine facility with a capacity of 100 million doses annually.
Aga Sekalala Jr Uganda Manufacturers Association Chairman says Electricity instability is one of the biggest challenges facing Uganda’s manufacturing sector.
“Without urgent intervention, industries will continue to suffer from high costs, equipment damage, and declining productivity. The government and power utilities must take decisive action to ensure a stable and reliable power supply, improve infrastructure, and communicate effectively with industries. Addressing these issues will promote industrial growth, enhance competitiveness, and strengthen Uganda’s economy,”he stated
He stressed that electricity unreliability remains a critical challenge for manufacturers in Uganda, significantly affecting productivity, increasing operational costs, and limiting industrial growth. Power outages, voltage fluctuations, and unstable supply disrupt manufacturing processes, damage machinery, and force companies to rely on expensive alternative energy sources.
Frequency and Severity of Power Issues
Based on continuous surveys conducted by the Uganda Manufacturers Association (UMA) 2024/2025, power disruptions are a widespread and frequent challenge across the manufacturing sector. Many businesses experience power outages between 4 to 7 times per week, while others report interruptions daily. Some manufacturers experience up to 15 outages a day, making it nearly impossible to maintain continuous production. A few manufacturers face power failures once a week or every now and then, but even these occurrences significantly impact production efficiency.
Voltage fluctuations are also common, causing machines to run inefficiently or fail entirely. Many industrial machines require stable power to function correctly, and sudden drops or surges result in frequent breakdowns and high repair costs.
Impact on Manufacturing Operations
The consequences of power outages and voltage fluctuations are severe, affecting manufacturers in multiple ways:
1. Machine Damage and Increased Maintenance Costs: Power interruptions, surges, and voltage drops cause significant damage to manufacturing equipment. Machinery that operates under specific temperature and voltage conditions, such as in textile and metal industries, becomes highly vulnerable to malfunctions and permanent damage. Repairing and replacing these machines is costly and results in unplanned downtime.
2. High Energy Costs: With unreliable grid electricity, manufacturers are forced to rely on diesel generators to sustain production. Some companies report spending an additional 30 million UGX per month on generator fuel alone. For larger industries, generator costs reach hundreds of millions monthly. The combination of high electricity tariffs and backup energy expenses makes Uganda’s manufacturing sector increasingly expensive to operate.
3. Productivity and Quality Losses: Frequent power outages and fluctuations disrupt production schedules, leading to missed deadlines, material wastage, and reduced product quality. In textile manufacturing, for instance, interruptions result in incomplete chemical reactions, causing fabric discoloration and waste. For many industries, restarting machines after a sudden power cut takes significant time, reducing overall efficiency.
