Teso Foods Announces Shs180 Billion Expansion Into Large-Scale Food Processing and Value Addition

KAMPALA, Uganda — August 26, 2026: TESO FOODS Ltd has announced plans for a major Shs180 billion investment to establish a diversified food-processing and value-addition operation aimed at transforming locally produced agricultural commodities into finished products for the domestic, regional and international markets.

The ambitious industrial project is being developed as a major joint venture involving TESO FOODS Ltd and international technology and investment partners. It is expected to combine Uganda’s agricultural resources with advanced food-processing technologies, modern manufacturing systems and access to regional and international markets.

The planned expansion will position TESO FOODS among the companies seeking to accelerate Uganda’s transition from exporting largely unprocessed agricultural commodities to producing, packaging and marketing finished products with higher economic value.

Wide Range of Food Products

According to the company, the expanded production portfolio will cover a broad range of food products, including instant coffee, biscuits and cookies, chocolates and cocoa-based products, confectionery and sweets, dairy products, peanut butter, honey, tomato and chilli sauces, marmalades and other processed foods.

The coffee-processing component is expected to utilise both Uganda’s Arabica and Robusta coffee varieties, creating an opportunity to capture greater value from one of the country’s major agricultural exports.

The project will also target other agricultural value chains, including cocoa, dairy, groundnuts, fruits and honey, potentially providing a wider and more dependable market for farmers and other producers.

Focus on Local Agricultural Raw Materials

A central feature of the investment will be the company's intention to source agricultural raw materials locally wherever commercially and technically feasible.

TESO FOODS says this approach will help strengthen links between farmers and industrial processors while creating dependable markets for agricultural producers.

The company expects the investment to benefit coffee growers, dairy farmers, cocoa producers, groundnut farmers, fruit growers, beekeepers and other participants across Uganda's agricultural value chains.

By creating demand for locally produced raw materials, the project could also contribute to the development of more organised supply chains, improved quality standards and greater commercialisation of agriculture. Mukula:

Uganda Must Move Beyond Raw Exports

TESO FOODS Chairman Capt. Mike Mukula expressed optimism about the investment, describing value addition as an important component of Uganda's industrial transformation.

“Uganda must progressively move from exporting agricultural raw materials to processing, branding and exporting finished products of international quality. I am extremely excited about this investment because value addition enables our farmers and our country to retain a much greater share of the economic value generated from what we produce.”

Mukula said the project is ultimately intended to transform locally grown agricultural products into internationally competitive brands while creating opportunities for Ugandans.

He added that the investment would contribute to job creation, increased exports and the development of strong African consumer brands capable of competing in international markets.

Modern Processing and Manufacturing Technology

The proposed facilities are expected to incorporate modern European processing technologies alongside advanced quality-control, food-safety, packaging and automation systems.

TESO FOODS says the production facilities will be designed to meet Ugandan regulatory requirements as well as internationally recognised standards required for regional and export markets.

The use of modern processing and automation technologies is expected to improve production efficiency, consistency, product safety and packaging quality while enabling the company to compete in increasingly demanding food markets.

The emphasis on internationally recognised standards could also support the company's ambition to access markets beyond Uganda and expand its footprint across the East African region and other international destinations.

Employment and Skills Development

The investment is also expected to generate employment across a range of sectors associated with food manufacturing.

TESO FOODS says opportunities will arise in food technology, engineering, production, quality assurance, logistics, sales, marketing and administration, among other areas. 

Beyond direct employment, the development could create opportunities throughout the agricultural supply chain, including farming, aggregation, transportation, storage, packaging and distribution.

The expansion therefore has the potential to link industrialisation more closely with agriculture by creating a market for locally produced commodities while simultaneously developing manufacturing capacity.

Strengthening Uganda's Agro-Industrial Sector

Uganda has significant agricultural production potential, but a substantial portion of the country's agricultural commodities has historically been sold with limited processing, leaving farmers and the wider economy with a smaller share of the final consumer value.

The TESO FOODS investment seeks to address this challenge by establishing processing capacity that can convert agricultural raw materials into branded consumer products.

The company believes the project could eventually become one of the largest joint-venture food value-addition investments in Uganda and the wider East African region.

If implemented as planned, the development could contribute to the growth of Uganda's agro-processing sector while strengthening domestic manufacturing and reducing reliance on imported processed food products.

Expanding Export Opportunities

The project is also being positioned as an export-oriented investment.

TESO FOODS intends to develop products that can serve Uganda's growing consumer market while also targeting markets across East Africa and beyond.

Producing finished goods locally could enable Uganda to capture more value from its agricultural commodities before they leave the country, while locally manufactured brands could generate additional export earnings.

For products such as coffee, cocoa, honey, groundnuts and fruits, increased processing could create opportunities to move further up the value chain, from the export of raw commodities to the export of packaged and branded consumer products.

Phased Development

TESO FOODS intends to implement the project progressively, with manufacturing capacity developed in phases as the investment advances.

The company says the long-term objective is to build substantial food-manufacturing capacity capable of serving multiple product categories and markets.

Capt. Mukula said the broader vision extends beyond establishing factories, stressing the importance of creating jobs, supporting farmers and building internationally competitive African brands.

“This is ultimately about transforming what we grow into world-class products made in Uganda, creating jobs, increasing exports, supporting farmers and building strong African consumer brands capable of competing internationally,” he said.

The Shs180 billion investment places TESO FOODS among the companies positioning themselves to take advantage of Uganda's agricultural potential through industrial processing and value addition.

With its planned combination of local agricultural sourcing, modern processing technology and export-oriented production, the project is expected to contribute to the country's broader efforts to promote agro-industrialisation, increase manufacturing capacity and retain more value from agricultural production within Uganda.