GLOBAL Private Finance for the SDGs
Who We Are
Leveraging Capital
Aligning Capital
Strenghtening Policies
Resources

About Us

UNDP's Private Finance for the SDGs leverages, scales, and aligns private sector investments to help achieve the Sustainable Development Goals.

Our Team

Our team comprises experts passionate about driving private sector investments towards achieving the SDGs.

Our Partners

We collaborate with partners to drive sustainable private investment solutions, leveraging diverse expertise and resources to help achieve the SDGs.

Senior Advisory Group

Our Senior Advisory Group, led by UNDP Administrator Achim Steiner, comprises global sustainability leaders who provide strategic guidance.

Contact Us

For inquiries about partnerships, the SDG Investor Platform, or connecting with stakeholders, please contact us. Our team is here to help.

SDG Investor Platform

Discover comprehensive market intelligence on SDG-aligned investment prospects, including Investment Opportunity Areas, countries, sectors, and targeted SDGs.

Financial Centres for Sustainability

Financial Centres for Sustainability (FC4S) is a global network of 44 financial centres collaborating to achieve the 2030 Agenda for Sustainable Development and the Paris Agreement.

Growth Stage Impact Ventures

The Growth Stage Impact Ventures (GSIV) programme identifies and supports successful enterprises from developing countries that significantly contribute to the SDGs and integrate impact considerations into their decision-making processes.

Impact Venture Hub

The Impact Venture Hub accelerates sustainable development by supporting high-impact ventures, building a global network of mission-driven organizations and stimulating impactful investments.

Insurance and Risk Finance Facility

The Insurance and Risk Finance Facility (IRFF) develops innovative insurance solutions in 34 countries, aiming to expand to 50 by 2025, to protect vulnerable communities and transform insurance markets for greater resilience.

Thematic Bonds

UNDP extends its thematic debt expertise to corporates and private institutions, facilitating the issuance of thematic bonds to unlock capital for projects with significant environmental and social benefits.

Impact Management and Measurement Trainings

Access the management standards designed to guide businesses and investors to embed sustainability and the UN Sustainable Development Goals at the core of internal management and decision-making practices.

Integrated National Financing Frameworks

Integrated National Financing Frameworks (INFFs) provide a framework for financing national sustainable development priorities and the SDGs at the country level.

News

Our news centre is your source for the latest stories, press releases, blogs, and other updates.

Publications

Our publications section offers the SDG Impact Standards, reports, and other research.

Dairy aggregation and storage

Dairy aggregation and storage

Photo by Shutterstock

Dairy aggregation and storage

Compare IOA
Country
Uganda
Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Agriculture
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in ROI)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
Of 6.9 million liters of milk produced daily, rural centers have capacity of only 1.7 million liters
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Responsible Consumption and Production (SDG 12)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Good health and well-being (SDG 3) Decent Work and Economic Growth (SDG 8)

Business Model Description

Operate a distribution service to collect milk from smallholder farmers and offer cold storage and wholesale to processing facilities.

Expected Impact

Improve food security and nutritional situation especially for children by avoiding dairy product losses.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

Learn more

Disclaimer

UNDP, the Private Finance for the SDGs, and their affiliates (collectively “UNDP”) do not seek or solicit investment for programmes, projects, or opportunities described on this site (collectively “Programmes”) or any other Programmes, and nothing on this page should constitute a solicitation for investment. The actors listed on this site are not partners of UNDP, and their inclusion should not be construed as an endorsement or recommendation by UNDP for any relationship or investment.

The descriptions on this page are provided for informational purposes only. Only companies and enterprises that appear under the case study tab have been validated and vetted through UNDP programmes such as the Growth Stage Impact Ventures (GSIV), Business Call to Action (BCtA), or through other UN agencies. Even then, under no circumstances should their appearance on this website be construed as an endorsement for any relationship or investment. UNDP assumes no liability for investment losses directly or indirectly resulting from recommendations made, implied, or inferred by its research. Likewise, UNDP assumes no claim to investment gains directly or indirectly resulting from trading profits, investment management, or advisory fees obtained by following investment recommendations made, implied, or inferred by its research.

Investment involves risk, and all investments should be made with the supervision of a professional investment manager or advisor. The materials on the website are not an offer to sell or a solicitation of an offer to buy any investment, security, or commodity, nor shall any security be offered or sold to any person, in any jurisdiction in which such offer would be unlawful under the securities laws of such jurisdiction.

Read More

Expand All
Print

Country & Regions

Explore the country and target locations of the investment opportunity.
Country
Uganda
Region
  • Uganda: Karamoja
Learn more
Show More

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Food and Beverage

Development need
70% of Ugandans are employed in agriculture (IX), and the sector constitutes approximately a quarter of gross domestic product (GDP) and a large proportion of exports (III). The agriculture sector is marred by low levels of productivity and output, mainly caused by poor agricultural practices as well as the impacts of climate change.(VII)

Policy priority
The government supports the development of the agriculture sector, emphasising agro-industrialisation in the Third National Development Plan 2020/21 – 2024/25.(IV) The Vision 2040 recognises agriculture as one of the key pillars for the country's development and acknowledges the need for innovation and integration of the sector.(X)

Investment opportunities introduction
Approximately 80% of Uganda's land is arable, however only 35% is currently being cultivated. Agricultural development is predicted to contribute to domestic wealth creation and increased employment.(IV)

Key bottlenecks introduction
The Agriculture Sector Strategic Plan 2015/16 - 2019/20 provides a detailed analysis of opportunities and challenges in agriculture, emphasising agro-processing, innovation, improvement of skills and establishment of market linkages, which will help transform the sector towards industrialisation and higher value adding.(IV)

Industry

Agricultural Products

Show More

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Dairy aggregation and storage

Business Model

Operate a distribution service to collect milk from smallholder farmers and offer cold storage and wholesale to processing facilities.

Show More

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Critical IOA Unit
Describes a complementary market sizing measure exemplifying the opportunities with the IOA.

Of 6.9 million liters of milk produced daily, rural centers have capacity of only 1.7 million liters

Uganda has average daily milk production of 6.9 million liters, but rural collection centers have capacity of only 1.7 million liters.(1)

The value of marketed milk has increased by 5%, from USD 716 million in 2015 to USD 752 million in 2017-18.(1)

Indicative Return

ROI
Describes an expected return from the IOA investment over its lifetime.

15% - 20%

The estimated return rate for investors is 17.8% - 21.8%. This rate is a benchmark calculated as a cost of equity with a country risk premium, reflecting an average return required by investors active in the subsector.(20)

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Short Term (0–5 years)

Assuming a factory that can process 50,000 liters of milk daily, the estimated investment timeframe is less than 5 years.(16)

Market Risks & Scale Obstacles

Market - infrastructure challenges

Rural milk collection infrastructure is not well developed in most parts of the country. The Eastern and Northern regions lack functional rural milk collection centres with cooling equipment. (21) Most coolers (75%) are in the South Western region and 15% in the Central region.(6) Some areas might not have access to technology necessary for using the platform.
Show More

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

In Uganda, 29% of children under 5 are stunted (2), and 41% of Ugandans suffer from insufficient intake of dietary energy.(3)

Including or increasing milk consumption among children can positively reduce malnutrition, especially because milk can provide up to 25% - 33% of the protein needed every day and positively contribute to weight gain and growth of malnourished children.(4)

Inadequate storage and cargo space are among key challenges to maintain the quality and shelf-life of milk, contributing to food insecurity and food losses.

COVID-19 contributed to increased food insecurity due to lockdown in Uganda (16), exacerbating issues of insufficient collection and cooling storage capacity, which in turn lead to high milk losses (17).

Gender & Marginalisation

Children with nutritional challenges negatively impact on opportunities for female household members.

Expected Development Outcome

Improved food security, decreased food losses, decreased malnutrition levels

Alleviated poverty levels due to higher demand for milk

Improved sustainability of the dairy industry, supporting smallholder farmers

Gender & Marginalisation

Particularly beneficial for women from better nutrition levels for children

Primary SDGs addressed

Zero Hunger (SDG 2)
2 - Zero Hunger

2.1.2 Prevalence of moderate or severe food insecurity in the population, based on the Food Insecurity Experience Scale (FIES)

2.3.2 Average income of small-scale food producers, by sex and indigenous status

2.4.1 Proportion of agricultural area under productive and sustainable agriculture

Responsible Consumption and Production (SDG 12)
12 - Responsible Consumption and Production

12.2.1 Material footprint, material footprint per capita, and material footprint per GDP

12.3.1 (a) Food loss index and (b) food waste index

Secondary SDGs addressed

1 - No Poverty
3 - Good Health and Well-Being
8 - Decent Work and Economic Growth

Directly impacted stakeholders

People

Households benefitting from better nutritional circumstances

Gender inequality and/or marginalization

Women with children with higher nutritional levels

Corporates

Farmers, aggregators

Indirectly impacted stakeholders

People

Consumers with greater choice and access to more high quality products

Planet

Environment due to reduced impact of non-utilised milk and dairy products

Corporates

Wholesalers, retailers, food banks

Outcome Risks

Pollution due to transport, water pollution (22)

Contribution to climate change due to greenhouse gas emissions (5)

Additional costs imposed by service providers if a storage facility is not owned by the farmers (23)

Impact Classification

B—Benefit Stakeholders

What

Improved logistics between agricultural producers and silos/processing facilities to reduce milk losses

Risk

This solution has already been implemented in some regions of Uganda, raising the risk of competition when upscaling the business.

Impact Thesis

Improve food security and nutritional situation especially for children by avoiding dairy product losses.

Show More

Enabling Environment

Explore policy, regulatory and financial factors relevant for the investment opportunity.

Policy Environment

Plan for Modernisation of Agriculture (PMA): This plan aims to create a framework for economic growth and structural transformation, ensure good governance, and directly increase the ability of the poor to raise incomes and their quality of life.(15)

Agriculture Sector Strategic Plan 2015/16-2019/20: This plan outlines the necessary investment and development within agriculture, in accordance with the National Development Plan.(8)

Agricultural Technology and Agribusiness Advisory Services (ATAAS): This organization aims to improve agricultural productivity and increase the incomes of households by enhancing agricultural research and advisory services.(10)

Financial Environment

Financial incentives: The Uganda Development Bank provides funding for agro-industrialization.(18) The Agricultural Credit Facility provides medium and long term loans to farmers and agro-processors for purchases of agricultural machinery, etc.(19)

Fiscal incentives: Operators within an industrial park or free zone receive an income tax exemption. Income from agro-processing also receives a tax exemption.(11)

Regulatory Environment

The Dairy Industry Act 2000: This Act regulates all issues connected to dairy production, processing and marketing, and outlines the scope of power of the Dairy Development Authority.(7)

Dairy (Marketing and Processing of Milk and Milk Products) Regulations 2003: These regulations outline the components of the registration and certification processes of actors in the dairy industry, and determine the scope of inspections.(14)

Show More

Marketplace Participants

Discover examples of public and private stakeholders active in this investment opportunity that were identified through secondary research and consultations.

Private Sector

AgDevCo, Nestle, Brookside Dairy Limited, Jesa Farm Dairy, Pearl Dairy Farms Limited, Amos Dairies Uganda Limited, Paramount Dairies Limited, GBK Dairy Products Limited, Lakeside Dairy Limited, Rainbow Industries Limited

Government

Ministry of Agriculture, Dairy Development Authority

Show More

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map
rural

Uganda: Karamoja

The Kotido, Nakapiripirit, and Kaabong districts have the highest cattle numbers,(12) and would therefore provide the largest potential client base among cattle-holding farmers. Cattle ownership in Uganda varies significantly by region.
Show More

References

See what sources were used to establish the investment opportunity’s data and find resources that could be consulted to explore more.
    • Show More