A man packs sugar in a factory. According to Bank of Ugandas records from December 2023 to November 2024, the country cumulatively exported a total of 228,998 metric tonnes of sugar. PHOTO/FILE
The delayed passing of the Uganda Sugar (Amendment) Bill 2023 is deterring investments and hindering increased production in the sugar industry.
Experts emphasize the urgent need for a regulator or council to manage the sugar industry.
The Bill, sponsored by the Minister of Trade, aims at promoting better development, regulation, and promotion of the sugar industry, as well as establishing the Uganda Sugar Industry Stakeholder Council.
Despite being tabled for the first reading in December 2023 and the second reading in February 2024, the Bill remains stalled.
Uganda Sugar Manufacturers Association (USMA) chairman, Mr Jim Kabeho, warns that the delay will perpetuate confusion, affecting production, which currently stands at 550,000 tonnes annually, half of the potential 1 million tonnes.
“If the Bill is not passed, we shall remain in the confusion. Ideally, we would be producing over 1 million tonnes annually. But we are stuck at half of that because of the never-ending industry confusion, “Kabeho said.
The policy behind the Bill is to provide for the better development, regulation, and promotion of the sugar industry; and to provide for the establishment of the Uganda Sugar Industry Stakeholder Council.
According to the Parliament Bill tracker, this Bill was sponsored by the Minister of Trade, to the Committee on Tourism, Trade and Industry in 2023.
On May 12th the reading as the first stage of a Bill passage through the floor of Parliament took place without debate as a formality.
The following year on February 1 2024 , the Bill’s second reading was made and it was the first opportunity for Members of Parliament (MPs) to debate its main principles.
This usually takes place up to 45 days after the first reading. Once the second reading is complete, the Bill proceeds to the committee stage where each clause (part) and any amendments (proposals for change) to the Bill may be debated.
Kabeho expressed fear that amid the delays and confusion in Uganda, Kenya, one of the country’s leading export destinations, is getting its Sugar Act together, leaving Uganda behind.
According to the Uganda Sugar Manufacturers' Association (USMA), the industry produces about 550,000 tonnes, of which 370,000 tonnes are consumed locally leaving the balance for the export market.
With Kenya alone, under the new framework of trade cooperation, Uganda can export up to 90,000 metric tonnes of sugar per year.
Uganda has faced multiple trade blockades with Kenya, the most recent occurring three months ago. It was eventually lifted after significant public outcry.
“When the ban was issued last year, we made noise and it was lifted. Since then, the exports to Kenya and South Sudan, DR Congo, and Rwanda and Northern Tanzania have been smooth legally,” Kabeho noted.
According to the latest Bank of Uganda’s monthly export records, from December 2023 to November 2024, the country cumulatively exported a total of 228,998 metric tonnes of sugar.
This earned the country revenue worth $153m (Shs564b), indicating a nearly 45 percent increase from $84m (Shs312b) the country earned the previous cumulative period.
Over the past five years, both sugar export earnings and volumes have been on an upward trajectory.
For example, five years ago, the country exported 145,490 metric tonnes of sugar worth $76m (Shs283b).
This indicated a 49 percent increase in revenue earned five years later and 36 percent rise in export volume.
