Ugandan healthcare industry taps into cassava value chain with commissioning of US$50M starch plant
Built to process 500 tons of cassava per day, the new facility will supply pharmaceutical-grade starch, glucose, maltose, and other derivatives.
UGANDA – Dei Biopharma has commissioned a US$50 million cassava processing unit in Namasagali, Kamuli district, marking a major step in how Uganda’s healthcare and pharmaceutical industries tap into the cassava value chain.
Built to process 500 tons of cassava per day, the new facility will supply pharmaceutical-grade starch, glucose, maltose, and other derivatives to the company’s Matugga plant near Kampala, which already operates 30 production lines.
The investment, one of the largest industrial deployments around a staple crop that produces an estimated 2.2 million tons annually, has already brought more than 3,000 farmers from Busoga, Bukedi, Lango, and Teso into its supply network.
Cassava is a central staple in Uganda’s diet, consumed alongside maize, potatoes, and plantains. Its high starch content makes it indispensable not only to households but also to manufacturers seeking reliable inputs for medicines, capsules, beverages, and food products.
Dei Biopharma’s new unit brings a new level of structure and scale to this value chain, promising stable markets and year-round demand for growers in regions that have historically lacked predictable buyers.
Announced in a press release on November 19, the plant underscores the company’s long-term strategy to strengthen the country’s capacity for drug formulation.
“Our decision to invest in starch production is strategic. It aims to strengthen Uganda’s competitiveness in drug manufacturing by reducing dependence on imported inputs,” said Matthias Magoola, founder and CEO of Dei Biopharma.
By localizing the production of pharmaceutical-grade starch, long imported for use as binders, fillers, and stabilisers, the company expects to lower production costs, enhance supply security, and improve the resilience of Uganda’s pharmaceutical ecosystem.
Yet the investment comes at a time when global discussions about food crops being diverted to industrial uses are intensifying.
The FAO warned in 2024 that increased non-food demand, particularly for bioethanol and industrial starches, could squeeze local supply, raise prices, and undermine access for vulnerable populations.
With Dei Biopharma’s substantial raw material requirement and with other industries likely to follow similar raw-material sourcing strategies, experts note that Uganda’s cassava production will need to expand significantly to meet both household consumption and industrial processing needs.
Uganda’s cassava output averaged 2.2 million tons between 2019 and 2023. While adequate for current consumption patterns, this volume may quickly come under pressure if industrial uptake accelerates.
The situation calls for expanded cultivation, investment in improved cassava varieties, better extension services, and post-harvest technologies to raise yields and reduce losses.
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