Adding value to Ugandan bananas

Summary

Business Daily (BBC World Service)

Episode: Adding value to Ugandan bananas

Host: Zawadim Dibo
Date: March 5, 2025

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Overview

In this episode, Zawadim Dibo explores the flourishing world of Uganda’s banana industry—far beyond the familiar fruit bowl. The discussion delves into innovative approaches to add value to Uganda’s banana crop, including transforming it into banana wine, fiber for textiles and wigs, and even exploring biofertilizer possibilities. The conversation features passionate Ugandan entrepreneurs, experts, and government perspectives, all focusing on how the banana can provide greater economic opportunities, support youth employment, and reshape perceptions of this staple crop.

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Key Discussion Points and Insights

The Cultural and Economic Importance of Bananas in Uganda

• Bananas are integral to Ugandan life, with more than 12 million tons produced annually—making Uganda the world’s second-largest producer after India. (04:45)
• Bananas, particularly the green variety “matoke” (plantain), serve as:
  • A vital food security crop
  • A source of income for millions of farmers
  • A deep-rooted cultural symbol
• Current yield per hectare is 30 tonnes, versus a potential 60 tonnes, due to focus on subsistence rather than commercial production. (03:45)

Quote:

“The banana is woven into the very fabric of Ugandan culture.”
—Zawadim Dibo (02:45)

Challenges to Banana Farming and Sales

• The majority of bananas are produced for household consumption; only a small portion enter formal markets or are exported.
• Fluctuating weather, such as sun damage, can significantly impact output and farmer income. (05:27)

Quote:

“The sun some time ago spoilt my farm and there wasn’t matoke to sell. That means it takes me some good time before I can get some money.”
—Toyota Donozi, banana farmer (05:27)

Value Addition: From Wine to Textiles

Banana Wine Production

• Moses Musisi, owner of Native Beverages, transitioned from teaching to create a banana wine business, investing $160,000 in machinery.
• The winery sources bananas from over 200 farmers, empowering local producers by offering stable market access. (07:49–09:50)
• Bananas suitable for winemaking (“Mbide” variety) have suffered from pests and disease, posing further challenges.
• The process and tasting of banana wine is highlighted, underscoring the unique “fruity, smoky” flavor.

Quote:

“Our model rests around small scale farmers whom we buy from, empowering them by giving them market access to their bananas and turning these bananas into a very highly valued product.”
—Moses Musisi (07:49)

Memorable Moment:

“[Swirls wine]...I swirl all around the glass so that the bouquet, the aromas come up...Yeah, this is our typical red wine...typical wine flavor smell the aroma of our Heart of God brand. Cheers.”
—Moses Musisi (10:16)

Banana Fibers for Textiles and Beyond

• Kimani Muturi, founder of Texford, collects banana stems from a network of over 25 farmers, extracts fiber, and creates products like hair extensions and handwoven textiles. (12:15–15:42)
• Fiber extraction generates both dry biomass and a nutrient-rich sap, which is being studied as a potential biofertilizer.
• The extracted banana fibers are softened to cotton-level fineness, making them suitable for a range of textile applications, including export-quality wigs and medical wigs for chemotherapy patients.

Quote:

“I believe that the future of textiles is in banana stems...I want to look into a future where the farmers are harvesting the fruit, processing the stem and taking the fibers into a textile mill.”
—Kimani Muturi (01:34, 15:32)

Notable Details:

• Banana hair extensions are available in multiple colors, including natural and dyed (e.g., red, brown, blonde, purple). (14:28)
• Texford employs low-tech, handloom-based textile production, making it accessible for rural villagers without power.

Quote:

“There are those customers who want it in red. They are those who want it in brown...Purple...Yes. And they are those who want it in blonde. The natural color comes out beautiful.”
—Kimani Muturi (14:32–14:40)

Research and Biofertilizer Development

• Collaborative research is underway with Busitama University to analyze banana sap and develop it into packaged biofertilizer. (13:35)

Lessons from Abroad and the Need for Policy Support

• Dr. George William Biarugaba Bazirake (food biotechnologist, professor of entrepreneurship) compares Uganda’s efforts to India, which processes over 90 banana-derived products.
• Uganda, he says, could generate over 140 banana-based products, but faces “market challenges.”
• Dr. Bazirake recommends:
  • Promoting zonal farming and industries to create rural jobs
  • Finding both local and international markets for banana products
  • Reducing taxation on banana goods to encourage producers (16:01)

Quote:

“We are finding that Uganda will have over 140 different products that can come from bananas, although the market is still a challenge.”
—Dr. George William Biarugaba Bazirake (16:01)

The Tax Burden and Barriers to Growth

• High local excise taxes (about one-third the retail price) on products like banana wine place a significant burden on local manufacturers. (17:08)
• The program attempted to get government response about lowering these taxes but did not receive comment.

The Youth and the Future: Skills and Innovation

• Both Muturi and Musisi advocate for encouraging student entrepreneurship and linking academic research to commercial potential.
• There’s a strong push for government support, especially through skills training and reduced regulatory barriers, to enable further growth and the pursuit of export opportunities.

Quotes:

“Whenever they are doing researches, let them do research of things they can commercialize, not things that can just give them grades.”
—Kimani Muturi (17:55)

“We think there’s a huge, huge opportunity here. If government comes in in terms of skilling the different people in wine making, then we can fill up our supermarkets with our wines. We can go into export markets in East Africa...even other areas of Europe. I think it would be a unique proposition other than grape wine.”
—Moses Musisi (18:15)

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Notable Quotes & Moments

• Farmers' resilience and need for innovation:
  “My garden looks good. It will get better when I get some chemicals to spray the grass. Use a hoe and hands. It is fine now. Now, we sell matoke. We eat. We also eat the yellow bananas. We have a lot of big yellow bananas. We fill up the cars. We are well.”
  —Toyota Donozi (04:40)

• Product Demonstrations:
  “This room has 12 handlooms and we have 12 people who work here...We have developed a technology of softening banana fiber to the level of cotton.”
  —Kimani Muturi (15:32)

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Timestamps for Important Segments

• 01:09 — Introduction to episode's theme and Uganda’s banana landscape
• 03:45 — Uganda's banana output and cultural relevance
• 04:40 — On-the-ground perspective from Toyota Donozi, banana farmer
• 07:49 — Moses Musisi describes banana wine business model and local impact
• 10:16 — Wine production/tasting process at Native Beverages
• 12:15 — Bananas as resource for fiber and bioproducts; Kimani Muturi’s Texford story
• 13:35 — Research on banana sap for biofertilizer
• 15:32 — Textile production details and technology
• 16:01 — Prof. Bazirake on India’s banana products and policy recommendations
• 17:08 — Taxation challenges for banana wine producers
• 17:55 — Calls for greater student entrepreneurship
• 18:15 — Hopes for further support, skills development, and export ambitions

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Conclusion

This episode paints an optimistic yet critical picture of Uganda’s banana sector—a transformative driver for food security, rural industry, innovation, and exports. Entrepreneurs like Moses Musisi and Kimani Muturi demonstrate the wide-ranging opportunities for adding value to bananas, while experts stress the need for better support, lower taxes, and more entrepreneurial mindsets among the youth. The banana, far more than a fruit, emerges as a cornerstone for Uganda’s future economic and social development.

Transcript

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[SAP Concur Representative]

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[Zawadim Dibo]

I didn't submit an expense report.

[SAP Concur Representative]

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[Zawadim Dibo]

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[Zawadim Dibo]

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[Zawadim Dibo]

I'll need self defense classes.

[SAP Concur Representative]

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[Kimani Muturi]

For what?

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[Zawadim Dibo]

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[Zawadim Dibo]

Hello, welcome to Business Daily from the BBC World Service. I'm Zawadimdibo. Today we're in the heart of East Africa, Uganda, where nestled among rolling hills and lush green valleys lies a crop that pulses with life and promise. The banana. You might know it as a fruit to eat, but in this program we'll hear about the other business possibilities.

[Kimani Muturi]

I believe that the future of textiles is in banana stems. So I want to look into a future where the farmers are harvesting the fruit, processing the stem and taking the fibers into a textile mill.

[Zawadim Dibo]

From turning bananas into hand woven textiles to making them into drinks.

[Moses Musisi]

As you know, bananas is not the easiest thing to process into wine. And that's why you don't get a lot of people making wine from bananas. Essentially because of that, we uncover a.

[Zawadim Dibo]

World where bananas are not merely consumed, but revered. Banana, particularly the green variety called matoke or plantain, serves as a food security crop, an income source and a cultural artifact, among other benefits. And it could bring big rewards.

[Dr. George William Biarugaba Bazirake]

We have got to add value and make sure that we get products that can earn foreign exchange, like the dehydrated banana in form of plantain, in form of apple. Bananas can earn a lot of money.

[Zawadim Dibo]

From European countries adding value to bananas. That's all coming up on today's Business Daily. Enthusiastic voices of customers in this restaurant off the busy Bukoto Ntinda Road enjoying a hearty meal of banana luombo, a traditional Ugandan dish of a sauce and various ingredients range wrapped in a banana leaf and steamed from serving As a vital source of nutrition in times of crisis to offering a steady income for farmers. The banana is woven into the very fabric of Ugandan culture. Uganda produces more than 12 million tons of bananas annually, making it the second largest producer of bananas in the world after India. But that yield is still very low. By its own standard, the country's current production averages 30 tonnes per hectare per year, compared to the attainable yield of over 60 tonnes, mainly because production has been driven by household consumption rather than commercial goals. I'm in a sprawling banana plantation in central Uganda in Wakise district. The plantation stretches as far as I can see with rows upon rows of tall, lush banana plants swaying gentle in the breeze. I meet Toyota Donozi. Toyota is the farmer behind one of these farms here.

[Toyota Donozi]

My garden looks good. It will get better when I get some chemicals to spray the grass. Use a hoe and hands. It is fine now. Now we sell matoke. We eat. We also eat the yellow bananas. We have a lot of big yellow bananas. We fill up the cars. We are well.

[Zawadim Dibo]

The banana is a major food crop for at least half of the country's population. It is estimated that more than two thirds of Ugandan farmers cultivate it, with a consumption rate of almost 1 kg per person per day, according to World Economic Forum.

[Toyota Donozi]

When the months are done, I sell some matoke and I get some matoke. But the sun some time ago spoilt my farm and there wasn't matoke to sell. That means it takes me some good time before I can get some money.

[Zawadim Dibo]

Based on its main usage as food, bananas can be categorized into five cooking, brewing, roasting, sweet dessert and multi use types. Streets are littered with motorbikes loaded with sacks and crates. A small bunch of less than 20 kilograms sells at more than 12,000 Ugandan shillings, which is about three and a half US dollars. In 2020, banana exports amounted to three million US dollars. That was five percent of the bananas produced in 2023. Those earnings jumped up to close to 30 million US dollars, characterized mostly by exports to neighboring South Sudan, Rwanda and the Democratic Republic of Congo. With over 77% of its citizens under 25 years of age, Uganda has one of the youngest populations in the world. Youth unemployment remains high, making the need to diversify the banana crop to create jobs through value addition more urgent now than ever. The government established the Presidential Initiative on Banana industrial development in 2005, under which a banana processing factory was set up to produce flour and other products. However, the processed flour has gained little domestic market acceptance, which implies difficulties influencing How Ugandans utilize and perceive the crop. But some farmers and entrepreneurs are developing value added products. Moses Musisi owns the winery Native Beverages. The company produces a range of banana wines in Wakiso district, central Uganda.

[Moses Musisi]

Our model rests around small scale farmers whom we buy from, empowering them by giving them market access to their bananas and turning these bananas into a very highly valued product that sells in different outlets in the country.

[Zawadim Dibo]

After Moses retired From teaching in 2020, he went into research and product development. He invested his life savings into the machinery acquisition and installation costing him around US$160,000.

[Moses Musisi]

We said because of our technical capabilities, let us go into production of wine from bananas.

[Zawadim Dibo]

But it was no mean feat.

[Moses Musisi]

We are on the journey to also convince Ugandans that local is good.

[Zawadim Dibo]

As we have heard, the majority of bananas produced in Uganda are the cooking variety called matoke or plantain. But there are other varieties that are more suitable for juice production. The ones that wine producers like Moses uses, they are known by their local name Mbide. They have perennially been attacked and decimated by diseases and pests.

[Moses Musisi]

We hope to work with various authorities. We work with active farmers as well so that the production, the yield can increase.

[Zawadim Dibo]

Moses has taken me outside to show me the receiving yard for fresh farm produce. He has over 200 farmers with accumulative land area of 200 acres under cultivation contracted to supply him the winemaking variety of bananas. Moses takes me to the production line.

[Moses Musisi]

From the Chibani. We remove these dried banana leaves and we put them down. And then the process starts by people peeling off the banana. After peeling the bananas, we pulp the those bananas in this machine. Mr. Mudibo, you're most welcome to the lab.

[Kimani Muturi]

Thank you.

[Moses Musisi]

Thank you. This is a lab that monitors the different parameters of the different stages. So from here, once we are sure we have measured the process in the lab we have tested, then we transfer the wine. It is not yet mature. It is green wine now. So we transfer the green wine into maturation tanks. This is where the wine will mature eventually, where it is going to be ready for packaging. I swirl, I swirl all around the glass so that the bouquet, the aromas come up and fill up that space. And then I put on the nose. Yeah, this is our typical red wine that it is flu flavored, it has some burnt character, it is smoky. Typical wine flavor smell the aroma of our Heart of God brand. Cheers.

[Zawadim Dibo]

This is business Daily from the BBC World Service.

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[Zawadim Dibo]

I'm Zawadim Dibo and today I'm finding out how Uganda could be making more money from its favorite crop, the banana. The waste products from Uganda's love of eating bananas have also been sported as an opportunity. Kimani Muturi is the founder and director at texford, an organization that uses waste banana stems, extracts fibres and transforms them into a number of products.

[Kimani Muturi]

We have a network of farmers who supply banana stems. These farmers are about 25 farmers which we have mobilized. They are the ones who supply with the stems. But then we also have 10 farmers with banana fiber extractors. We have given them these extractors, we have trained them how to extract. They are extracting fibers from their farms and then we buy fibers from them. Because the fiber we producer takes fiber, but it's not enough for our consumption.

[Zawadim Dibo]

After the extraction, the fibres are hung on drops to air in direct sunlight for about four hours. Meanwhile, the extraction process generates dry biomass and a liquid substance, a SAP from the waste banana pseudo stems.

[Kimani Muturi]

We have submitted samples of this to Busitama University, a local university. They are looking at the nutrition value in terms of what nutrients the soil can get from that organic manure. And then they're also going to help us with the science of formulating this SAP into a fertilizer, a biofertilizer that can be packaged. Now, this banana here fiber is going to finally make hair extensions. This is a process of degamming banana fibers to remove the ringing from the fiber, to make the fibers free and be able to shed off all the impurities that the fiber may have, those impurities that you may not see by your eyes.

[Zawadim Dibo]

Wow.

[Moses Musisi]

This is real hair.

[Zawadim Dibo]

And they come in different colors.

[Kimani Muturi]

Oh, yeah. My goodness. There are those customers who want it in red. They are those who want it in brown.

[Moses Musisi]

Purple.

[Kimani Muturi]

Yes. And they are those who want it in blonde. The natural colour comes out beautiful. We have customers in the UK who are currently buying from us and sampling it. They are trying to develop wigs for cancer patients who have gone through chemotherapy and to see whether those wigs would be ideal for medical purposes. For people who go through chemotherapy. This room has 12 handlooms and we have 12 people who work here. This kind of technology can be taken in any village where there is no power and people can make the fabrics. We have developed a technology of softening banana fiber to the level of cotton because I believe that the future of textiles is in banana stems. So I want to look into a future where the farmers are harvesting the fruit, processing the stem and taking the fibers into a textile mill.

[Zawadim Dibo]

So how could the government help to harness this potential business opportunity? Dr. George William Biarugaba Bazirake, a food biotechnologist and professor of entrepreneurship at Chambogo University, Kampala, draws lessons from the leading producer of bananas globally.

[Dr. George William Biarugaba Bazirake]

We have not exploited the potential of the banana value chain. While I had visited India, they were already talking over 90 products made from bananas. We are finding that Uganda will have over 140 different products that can come from bananas, although the market is still a challenge. So my recommendation that this encourages zonal farming, number one and zonal industries. This will create jobs and enabling environment for the use, not congest the cities. And two, is to look for market while we create zonal industries. We need markets local and international. And three, once we have market, we must create an enabling environment again on favorable balance of trade by taxing less so that people are not overburdened with a third going into tax.

[Zawadim Dibo]

For context, let's take the example of taxation on locally manufactured banana wine. For every bottle of wine retailing about 30,000 Uganda shillings or US$9, the producer needs to pay at least 10,000 Uganda shillings or 3 US dollars in tax through what is called local excess duty. This means government claims one third of the proceeds from local manufacturers. We approached the Ugandan government for comment on the local excess duty rate, but so far we haven't heard a reply. Muthuri Kimani and Moses Musesi, our banana entrepreneurs, know what they would like to see.

[Kimani Muturi]

I've seen students benefiting from this kind of a model where you learn from the university and then come out with a startup at the university before you even graduate. It's the best transition for students. Whenever they are doing researches, let them do research of things they can commercialize, not things that can just give them grades.

[Moses Musisi]

We think that there's a huge, huge opportunity here. If government comes in in terms of skilling the different people in wine making, then we can fill up our supermarkets with our wines. We can go into export markets in East Africa, we can go and conquer even other areas of Europe. I think it would be a unique proposition other than grape wine. I think somebody out there would want to taste banana wine.

[Zawadim Dibo]

That's all from today's program produced and presented by me, Zawadim Dibo. Thanks for listening. To hear more, just search for Business daily wherever you get your BBC podcasts.

[Moses Musisi]

Mmm. I love ravioli.

[SAP Concur Representative]

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[Moses Musisi]

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[SAP Concur Representative]

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[Moses Musisi]

Well, you can predict the future.

[SAP Concur Representative]

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[Moses Musisi]

What message? Oh, hey, we all got bonuses.

[SAP Concur Representative]

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[Moses Musisi]

I don't have kids.

[Zawadim Dibo]

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