European Techno Group, an Italian company is planning to invest in a 20 million euro coffee processing factory in Uganda.

According to the investment plan presented by the European Techno Group officials led by the company Edoardo Maria Anghinelli, to the Prime Minister Amama Mbabazi, the investment will run as a joint venture with Palombini, the third largest coffee roaster in Italy.

The Prime Minister while on an official visit in Italy last year in December interested a number of Italian Business companies to come to Uganda to explore business opportunities the country offers. Therefore Euro Techno Group was in country as a follow up visit to discuss further business opportunities with the relevant government departments.

Mbabazi informed his guests that Uganda was a major coffee producer and pledged government’s commitment to facilitate the establishment of an International coffee processing factory in Uganda. “Uganda is capable of producing a variety of agricultural products but lacks capacity in value addition”, he added.

He appreciated the need by the European Techno Group to take control of the entire coffee production and processing chain to ensure quality products and a return on the investment. The entire production chain includes planting, processing and marketing of the products.

It was brought to the attention of the Premier that this investment requires 12,000 acres of land for planting coffee. He noted that government owns very little land and that free hold is only given to citizens. “We are trying to adjust the law to enable foreigners acquire free hold land. What is possible today for foreigners is lease hold”, he added. However he informed the investors that the Uganda Investment Authority will consult its data base to establish the availability of land.

It was also proposed that European Techno Group should consider partnering with out growers to contribute 40% of the required tons of coffee for processing. “Arrangements can be made with the respective households to ensure quality by providing them seed, fertilizers and any other tutorials necessary for quality assurance”, he said.

On his part, European Techno Group President Luca Anghinelli informed the Premier that if the investment is realized, the factory intends to produce 100,000 tons per day of processed coffee for export. He said that his company was interested in establishing a juice factory as well.

European Techno Group also has investments in energy, ICT, import logistics, education systems working in many African Countries and the Middle East.