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This fact sheet by Friends of the Earth International describes the Vegetable Oil Development project (VODP) in Uganda, a partnership involving Wilmar International, the Government of Uganda, the International Fund for Agricultural Development (IFAD), and Bidco. While promoted as a poverty-reduction effort, the document asserts the project has caused land grabbing, deforestation, and food insecurity, particularly on Bugala Island in the Kalangala area.

• The Vegetable Oil Development project (VODP), initiated in 1998 by the Government of Uganda, the World Bank, and the International Fund of Agricultural Development (IFAD), aims to increase domestic palm oil production. The World Bank withdrew from the project in 2004 due to potential non-compliance with internal forestry policies. The project is currently managed by Oil Palm Uganda Limited (OPUL), a subsidiary of Bidco Uganda, which is a joint venture involving Wilmar International, Josovina Commodities, and Bidco Oil Refineries.
• The project targets a total of 40,000 hectares of palm oil. The first phase focused on 10,000 hectares in the Kalangala islands, which resulted in the conversion of approximately one quarter of the land on Bugala Island, though only 7,500 hectares have been planted so far. A second phase is currently acquiring an additional 10,000 hectares.
• The project has led to significant social and environmental degradation. An estimated 3,600 hectares of forest have been destroyed, impacting the food, medicine, and livelihoods of islanders. Additionally, two villages reported that their main water sources became unusable due to pollution or blocked access. Local communities have experienced displacement, often without compensation, and rising food insecurity as food crops were replaced by oil palm.
• Employment claims by IFAD are contested; analysis indicates that 95% of plantation jobs are filled by migrant workers from other parts of Uganda rather than local community members, and these workers are paid wages below the island's average.
• The project's justification for reducing reliance on imported vegetable oils is questioned because the 40,000 hectare target is expected to produce double the amount needed for Uganda's domestic consumption, suggesting a significant portion will be exported.
• The project has allegedly violated several Ugandan laws, including the Constitution's prohibition on compulsory land acquisition (Section 26 (2) (a)), the Land Acquisition Act regarding compensation, and the National Environmental Act 1988 by failing to maintain a 200-metre buffer zone between plantations and Lake Victoria.
• The project is expanding without a required Environmental Impact Assessment (EIA). While IFAD and the Government of Uganda claim to have incorporated lessons from the first phase, the promised full social and environmental impact assessment has not occurred.

APA

Friends of the Earth International (n.d.). 0106 foei gmo pub08all ww.qxd. https://www.foei.org/wp-content/uploads/2020/12/Land-grabbing-for-palm-oil-in-Uganda.pdf

Chicago

Friends of the Earth International. 0106 foei gmo pub08all ww.qxd. n.d. https://www.foei.org/wp-content/uploads/2020/12/Land-grabbing-for-palm-oil-in-Uganda.pdf.

Wikipedia

{{cite report |author=Friends of the Earth International |title=0106 foei gmo pub08all ww.qxd |url=https://www.foei.org/wp-content/uploads/2020/12/Land-grabbing-for-palm-oil-in-Uganda.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{friendsoftheearthinternationalnd0106, author = {{Friends of the Earth International}}, title = {{0106 foei gmo pub08all ww.qxd}}, institution = {Friends of the Earth International}, url = {https://www.foei.org/wp-content/uploads/2020/12/Land-grabbing-for-palm-oil-in-Uganda.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }