The endemic nature of corruption in Uganda is hurting the country's prospects of attracting foreign investment, the Dutch ambassador, Alphons Hennekens, has warned.

"Corruption in Uganda is becoming serious. This trend is hurting the country's position as an investment destination," he said.

Hennekens was speaking at a meeting with Dutch dairy investors and Reline, a local livestock farmers' network, in Kampala.

The ambassador's remarks come in the wake of the fraud scandal rocking the Prime Minister's Office that has prompted several donors to halt aid to Uganda.

The meeting was one of several activities between the Dutch dairy development partners and local farmers that are expected to culminate into several partnerships aimed at making Uganda more competitive in the dairy sector.

Animal industry state minister Bright Rwamirama lauded the Dutch for taking an interest in Uganda. He said their efforts are in line with the transformation of the agricultural sector.

"We need to mechanise farming. Our population is increasing and yet the land is a not. Our farmers and staff also need more education on modern trends," he noted.

The minister also revealed that the Government is keen on empowering local farmers through availing friendly loans to facilitate modern farming.

Dr. Jolly Zaribwende, the head of the Dairy Development Authority (DDA), said the dairy sector is grappling with several challenges along the value chain.

"We have not had enough capacity to impact our farmers. The weak private sector has not helped matters either," she said.