Dei Biopharma Auction: Uganda’s Shs723.4 Billion Investment at Risk as Properties Face Sale Over Unpaid Loans

Uganda's flagship pharmaceutical project, Dei BioPharma Limited, faces significant risks as its properties are at risk of being auctioned due to unpaid loans. The financial troubles have escalated from legal proceedings to a public auction. Debt collection firm Jald Uganda has announced the sale of various properties owned by Dei Industries International Limited, Dei Natural Products International Limited, and businessman Dr Mathias Magoola.

The auction includes an industrial establishment, a wheat milling plant, a hospital, commercial buildings, residential developments, and land in different parts of Uganda. The properties' high value is causing political sensitivity, especially considering the government's Shs723.4 billion investment in Dei BioPharma over three tranches between 2023 and 2025.

Despite this funding, the company continues to face financial issues, with banks filing court claims for non-payment. The Auditor General's report from December 2024 highlighted serious concerns over the handling of the government's investment, including the lack of a valuation report and access to necessary documentation. The Parliamentary Committee on Presidential Affairs recently reported that the government holds only a 9.4% stake in Dei BioPharma, and the facility is operating below capacity.

The committee recommended an additional US$434 million to complete the plant, but Parliament has been divided on whether to approve further spending while the ownership and accountability issues remain unresolved. Workers at Dei BioPharma have also gone on strike due to unpaid wages, adding another layer of concern to the ongoing financial and operational challenges the project faces.