Uganda government breaks ground for $20m sugar factory in Kayunga

Construction has started on a $20 million (about Shs80 billion) sugar factory in Busaana Town Council, Kayunga District. Government officials say it will employ more than 3,000 people.

Minister of Local Government Balaam Barugahara laid the foundation stone for Shakti Sugar Factory last Wednesday. Officials described it as the first sugar factory to be set up in the district since independence. The factory will produce sugar under the Kayunga Sugar brand.

Barugahara said the factory would create jobs for young people and support farming through sugarcane outgrower schemes.

“My interest here is for the young people. The factory shall employ over 3,000 people while fostering local agricultural growth through sugarcane outgrower schemes,” he said.

He said the investment is expected to rise from $20 million to $40 million (about Shs160 billion) as the company expands its farming and processing operations. He said production is expected to start by October, and that President Yoweri Museveni is expected to preside over the official opening.

According to Barugahara, thousands more people will benefit indirectly through the outgrower scheme, which will be extended across the district.

“Investors are not here to exploit you. They are here to develop Uganda and also support the community to ensure the community grows,” he said.

The company also plans to generate electricity and produce paper and nanomaterials from the factory’s by-products, Barugahara said.

Minister of State for Planning Amos Lugoloobi said the Government had invested in electricity, water and roads in the district to attract investors.

“During the time of starting this kisanja, I promised to focus on connecting villages to power, water and local infrastructure. Without water or power, investors wouldn’t have been attracted to Kayunga to build the factory,” Lugoloobi said.

He said the factory would encourage other investors to set up industries in the district.

Diana Mutasingwa, the Minister of State in the Office of the Vice-President, welcomed the investment and said more industries were expected in Kayunga.

“I appreciate investors who are establishing the sugar factory in Kayunga. Many industries will be established in the district,” she said.

Elizabeth Mbeiza, a member of Shakti’s management, said outgrowers would be paid in cash once they deliver cane to the factory.

“At Shakti, outgrowers will be paid cash after delivery of their canes at the factory. I urge residents to come and work at the factory. Jobs are available,” Mbeiza said.

Barugahara, however, cautioned farmers against planting sugarcane on all their land, saying this could threaten household food security.

He advised farmers with large holdings to set land aside for food crops, suggesting that a farmer with 100 acres keep at least 10 for food.

He also urged farmers to adopt the President’s four-acre model, which combines coffee, cattle and other enterprises.

According to Mbeiza and other officials, the company plans to drill two boreholes and donate two tents and 400 plastic chairs for community functions.

After its first year of production, it plans to build three classrooms at a primary school and three at a secondary school, and to give about half an acre of land for a health centre III to serve workers and nearby residents.