Amuru seeks more land for sugar factory
Mr Mayur Madhvani, the managing director of Kakira Sugar Ltd (Left), Mr Michael Lakony Amuru District Chairperson(Centre) interacting with the section of delegation from Amuru District over delay of commencement of Amuru Sugar factory project in Kakira on January 22, 2025. PHOTO/DENIS EDEMA
What you need to know:
- Amuru Sugar Project is a partnership between the government and the Madhvani Group.
- The project is expected to employ at least 8,000 individuals once complete.
The Amuru District Local Government is looking for an additional 10,000 hectares of land to give to the Madhvani Group of Companies to establish Amuru Sugar Project, 10 years after it failed to take off. Mr Michael Lakony, the Amuru District chairperson, said the extra land will help the company grow enough sugarcane to supply the factory once it has been built.
“The factory will require a constant supply of canes so that production is not interrupted. Therefore, the outgrowers will have to set up their plantation near the factory, the land should be within the project area so that there are no challenges in transporting the cane to the factory,” he said in an interview with Monitor on Monday.
The Amuru Sugar Project is a partnership between the government and the Madhvani Group. The government owns 49 percent through the Uganda Development Corporation (UDC), while Madhvani Group owns 51 percent through East African Holdings Ltd and its approved partners. In 2016, the Lands ministry acquired more than 10,000 hectares of land for the project.
However, during a meeting with leaders from Amuru District in Jinja City in January, the management of Madhvani Group of Companies said they need another 10,000 hectares of land for the nucleus estate for outgrowers. According to the UDC, the Uganda Lands Commission (ULC) has secured a land title for the 8,666.032 hectares of land for the project. In mid-February, Madhvani Group signed a lease agreement with ULC to establish a sugar processing plant.
The 49-year lease covers the 10,000 hectares Madhvani Group acquired earlier in 2016. The leased land covers areas of Lakang, Kololo, Omee, Lujoro, Lwak-obito and Palyech. People who gave up their land to the government for the sugar factory are wondering why the project hasn’t started. In villages such as Tee-okutu, Bombayi, and Orego—located in Lakang and Kololo parishes—the land meant for the factory is now being used for grazing cattle.
While meeting the management of the Madhivani Group in January, Amuru Resident District Commissioner (RDC) Geoffrey Osborn Oceng said the community is putting pressure on leaders because the project has taken too long to start. “That land has remained idle for long, it was given to the Madhvani Group of Companies with all necessary documents and by now it would already be standing because the land owners have been compensated and they are wondering why the project has not taken off,” he said.
Mr Oceng added that there are claims of political interference and corruption, which are believed to be slowing down the project. Mr Lakony said many locals are blaming district leaders for the problems facing the sugar project, with some even suspecting there may have been fraud involved. He, however, said the delay in starting the sugar factory is because there wasn’t enough land for growing sugarcane. During the January meeting, it was revealed that the project is kicking off this year, with a total investment of Shs870 billion.
This publication has established that the Ministry of Finance has so far released about $25 million for the initial phase of the project. The feasibility study for the project started in March, nine months before the kick-off of the project implementation scheduled for December. The managing director of Kakira Sugar Ltd, Mr Mayur Madhvani, said the project is a strategic opportunity for economic development in the sub-region.
