Govt to revamp Shs2.2t Tororo fertiliser factory

Then under construction phosphates factory  is located 5km off  the Tororo-Busia road and was expected to produce about 300,000 organic fertilizer annually. PHOTO/FILE. 

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The announcement was made by the Prime Minister, Ms Robinah Nabbanja, while touring the defunct industrial park on Saturday

The government has announced plans to revamp a multimillion China-Uganda Free Zone Industrial Complex at Osukuru in Tororo District in a bid to create jobs.

The announcement was made by the Prime Minister, Ms Robinah Nabbanja, while touring the defunct industrial park on Saturday.

“The government is in final arrangement to give support to the current investor to revive the factory as we source for other potential investors,” Ms Nabbanja said.

In 2018, President Museveni commissioned the factory but along the way the main shareholders of the project, LV Weidong and Min, allegedly developed a disagreement that resulted in a legal battle.

In 2020, businesswoman Fang Min reportedly filed a case in which she had accused Guangzhou DongSong Energy Group, together with Uganda Hui Neng Mining, Mao Jie and Yang Junjia of fraudulent and unlawful expropriation of a 26-square-kilometre mineral site in Osukulu Sub-county in Tororo District.

A costly legal battle that resulted in compensation of $12m (about Shs42b) thereafter stalled the Sukulu phosphate and fertiliser project.

Ms Nabbanja, who apologised to the locals and leaders over the stalemate of the factory, said it’s unfortunate that many people had been rendered jobless.

“The country is in great need of fertilisers and halting its production equally hurts the government but we will commence production as we outsource for other potential investors,” she said.

Ms Nabbanja stressed that fertiliser use is going to become very important in the coming years considering that land is becoming scarce due to the growing population.

“The promotion of use of fertilisers will also help the country to save its forests and wetlands, which are disappearing because farmers are encroaching on them in search of fertile land,” she said.

Ms Nabbanja tasked the Minister of Science, Technology and Innovation, Dr Monica Musenero, to coordinate with the investors and see how best the investor can be supported and give feedback within one month.

The Tororo District chairperson, Mr John Okeya, said halting the production affected households that depended on the factory both directly and indirectly.