Sugar production in Uganda
Uganda is the largest producer of granular brown sugar in the East African Community, accounting for about 500,000 metric tonnes annually as of May 2017.[1]
Following a drought that adversely affected the water levels of Lake Victoria, which ended around 2011 or 2012, two misconceptions arose in Kenya's political and industrial circles: (a) Uganda was incapable of growing enough raw cane for domestic consumption; and (b) any claim by Uganda that it had a sugar surplus was based on the fact that Brazilian sugar barons were dumping sugar on the Ugandan (and Kenyan) markets.[2] A more reasoned approach, by both governments, allowed the development of a verifiable, inter-government, database showing production, consumption and export data for Uganda, since 2013.[2]
National output, consumption, marketable surplus, and strategic reserve
Calendar Year | National Production | National Consumption | National Export | To Strategic Reserve |
---|---|---|---|---|
2014 | ||||
2015 | ||||
2016 | ||||
2017 | ||||
History
In 1920, the Vithaldas Haridas & Company (VHC) was under the management of Muljibhai Madhvani, a 26-year-old Indian-born Ugandan businessman, entrepreneur, industrialist and philanthropist. VHC purchased 800 acres (324 ha) of land in Kakira, between Jinja and Iganga, for the purpose of starting a sugar factory.[5] Madhvani later became the managing director of VHC. That sugar complex, later renamed the Kakira Sugar Works, opened in 1930.[5]
In 1924, under the stewardship of Nanji Kalidas Mehta, another industrialist of Indian descent, Sugar Corporation of Uganda Limited (SCOUL) was founded as Uganda Sugar Factory at Lugazi. This marked the beginning of the Mehta Group, with headquarters in India and businesses in Sub-Saharan Africa and on the Indian sub-continent.[6]
Kinyara Sugar Works Limited (KSWL), Uganda's second-largest sugar factory, was until September 2011, majority owned by the Central Government of Uganda. Since then, the majority shares in the business are owned by the Rai Group, domiciled in Mauritius. As of September 2011, the shareholding in KSWL is as illustrated in the table below:[7][8]
Rank | Name of Owner | Percentage Ownership |
---|---|---|
1 | Rai Group of Mauritius | 70.00 |
2 | Omukama of Bunyoro | 10.00 |
3 | KSWL Employees | 10.00 |
4 | KSWL Outgrowers | 10.00 |
Total | 100.00 | |
Expansion of production
In 2016, construction began on a new sugar factory in Gem Village, Pachilo Parish, Atiak sub-county, Kilak County, in Amuru District, in the Northern Region of Uganda. Known as Atiak Sugar Factory, it has capacity to crush 1,650 tonnes (1,650,000 kg) of raw cane daily, producing 66,000 tonnes (66,000,000 kg) of powder sugar annually.[9]
In 2017, consensus was reached between the stakeholders for the Madhvani Group to lease 10,000 acres (40 km2) of land in the villages of Kololo, Lakang, Bana, Omee, Lujoro, Lwak Obito and Pailyech, in Amuru Sub-county, Amuru District in order to establish Amuru Sugar Works.[10]
See also
References
- ↑ Philomena Matsiko, Maryanne Gicobi, Emmanuel Onyango and Johnson Kanamugire (2 May 2017). "Why price of refined sugar has surged across East Africa". The EastAfrican. Nairobi. Retrieved 10 May 2017.
- 1 2 3 Ismail Musa Ladu (16 June 2016). "Uganda defeats Kenya over sugar surplus row". Daily Monitor. Kampala. Retrieved 10 May 2017.
- 1 2 Biryabarema, Elias (8 March 2017). "Uganda's raw sugar output expected to rise 10 pct this year". Thomson Reuters. Retrieved 11 May 2017.
- 1 2 3 Ojambo, Fred (17 April 2018). "Uganda's 2018 Sugar Output May Rise 17% on Top 3 Producers". Bloomberg LP]]. Retrieved 23 May 2018.
- 1 2 Madhvani Group (31 December 2009). "About Us: Our History: Kakira Sugar Works". Kakira. Retrieved 12 May 2017.
- ↑ Mehta Group (31 December 2010). "The History of The Mehta Group". Lugazi. Retrieved 12 May 2017.
- ↑ Naturinda, Sheila (29 September 2011). "Government sells stake in Kinyara Sugar Works". Daily Monitor. Kampala. Retrieved 12 May 2017.
- ↑ Biryabarema, Elias (29 September 2011). "Uganda govt sells a 19 pct stake in sugar producer". Thomson Reuters. Retrieved 12 May 2017.
- ↑ TEA (10 October 2015). "New sugar factory a blessing to farmers in Northern Uganda" (PDF). Nairobi: Ipsos.co.ke Quoting The EastAfrican (TEA). Retrieved 19 August 2017.
- ↑ Ocungi, Julius (28 June 2017). "Acholi leaders criticise Amuru sugar factory land agreement". Daily Monitor. Kampala. Retrieved 19 August 2017.