East African Business Week

KAMPALA, UGANDA- Iran-based Halal Meat Co. is to build a Ush30 billion (US$12.6 million) modern abattoir in Uganda in the first investment of its kind in the country that will give way to exports of beef to the Middle East and elsewhere in Africa.
 The Uganda Modern Halal Abattoir in Nakirebe, 17km on the Kampala - Masaka road in Mpigi district, targets to slaughter and process 200 cattle, 500 sheep and 500 goats per day, Mr. Medhi Eshragi, the managing director, said during the ground-breaking ceremony of the first phase of the project recently.
"After the completion of the Meat Factory 18 months from now, we expect to be able to slaughter 200 cattle, 500 goats and 500 sheep a day," Eshraghi said.
He said 50% of the meat would be sold locally and 50% exported to Iran itself and other Middle East countries.
According to the Uganda Bureau of statistics 2008 report, livestock population is estimated to number 11.4 million cattle, 12.5 million goats and 3.4 million sheep.
Eshragi said the second phase of the project, which would involve processing, canning the meat and value-addition to the by-products, would cost $40m.
"The meat is for all people and it will be exported to the Middle East and Africa," said Eshragi. About 300 people will be employed during the construction works of phase one, which is expected to last two years.
Dr. Maggie Kigozi, the Uganda Investment Authority boss, hailed the project, saying the Government had identified the meat sector for value-addition.
"We have a number of slaughter houses, but no particular quality, but this new project will also process all the other parts of the cow," said Kigozi.
Eshraghi said that the abattoir will employ 130 workers on the assembly and another 300 outside the site.
He said that the abattoir will be buying cattle, goats and sheep from the south and north of the country and has encouraged Ugandans to increase livestock production because there is ready market for it.
The second phase of the project will process the meat and other things including drying the blood of animals to turn it into powder and also transform it into fish food and iron fertilizer.
The Uganda Ambassador to Iran, Mr. Mohammed Kisule castigated land owners and squatters that are refusing to give especially lease idle land to investors because of prevailing negative attitude that foreigners are taking land.
Maggie Kigozi assured the Ugandans not to worry because the land still belongs to Uganda. "The land is not going anywhere," Kigozi assured the Nakirembe residents.
Mr. Ali Mousavi, the chairman of Iran Uganda Trade Investment said that it took him exactly 10 years to acquire the 60 acre land at Nakirembe for the Iranian investors to erect a modern abattoir.