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
National Annual Output, Marketable Surplus & Strategic Reserve in Uganda
Calendar YearNational ProductionNational ConsumptionNational ExportTo Strategic Reserve
2014
400,499.05MT
342,325.14MT
84,603.30MT
26,429.29MT
2015
396,315.95MT
329,896.00MT
49,810.55MT
16,604.40MT
2016
475,000.00MT[3]
350,000.00MT[3]
23,899.50MT[2]
107,704.90MT
2017
365,452.00MT[4]
360,000.00MT[4]
5,452.00MT[4]
2018
450,000.00MT[5]
360,000.00MT[4]
90,000.00MT[4]
2019
500,000.00MT[5]
350,000.00MT[4]
90,000.00MT[5]
60,000.00MT[5]
2020
510,000.00MT[6]
360,000.00MT[6]
130,000.00MT[6]
20,000.00MT[6]

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.[7] Madhvani later became the managing director of VHC. That sugar complex, later renamed the Kakira Sugar Works, opened in 1930.[7]

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.[8]

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:[9][10]

Kinyara Sugar Works Stock Ownership
RankName of OwnerPercentage Ownership
1Rai Group of Mauritius70.00
2Omukama of Bunyoro10.00
3KSWL Employees10.00
4KSWL Outgrowers10.00
Total100.00

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.[11]

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.[12]

Recent developments

In March 2020, a delegation of Tanzanian government officials visited Uganda, to ascertain the country's ability to manufacture sugar and its ability to generate surplus for export. After touring Uganda's four largest sugar factories, the delegation, led by the Tanzanian Minister of Agriculture, Japhet Hasunga, agreed to place an initial order of 30,000 metric tonnes[6], the first order in nearly two years.[13] As of May 2020, Uganda's annual sugar output, by the 11 largest manufacturers, was estimated at 510,000 metric tonnes. With Uganda's annual sugar consumption of 360,000 metric tonnes, approximately 150,000 metric tonnes are available for export.[14][15]

See also

References
  1. 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.
  2. Ismail Musa Ladu (16 June 2016). "Uganda defeats Kenya over sugar surplus row". Daily Monitor. Kampala. Retrieved 10 May 2017.
  3. Biryabarema, Elias (8 March 2017). "Uganda's raw sugar output expected to rise 10 pct this year". Thomson Reuters. Retrieved 11 May 2017.
  4. Ojambo, Fred (17 April 2018). "Uganda's 2018 Sugar Output May Rise 17% on Top 3 Producers". Bloomberg L.P. Retrieved 23 May 2018.
  5. Dorothy Nakaweesi (13 November 2019). "Sugar Stockpiles To Grow As Exports Are Locked Out". Daily Monitor. Kampala. Retrieved 13 November 2019.
  6. Paul Murungi (5 March 2020). "Tanzania Agrees To Open Up Its Market For Ugandan Sugar". Daily Monitor. Kampala. Retrieved 6 March 2020.
  7. Madhvani Group (31 December 2009). "About Us: Our History: Kakira Sugar Works". Kakira. Retrieved 12 May 2017.
  8. Mehta Group (31 December 2010). "The History of The Mehta Group". Lugazi. Retrieved 12 May 2017.
  9. Naturinda, Sheila (29 September 2011). "Government sells stake in Kinyara Sugar Works". Daily Monitor. Kampala. Retrieved 12 May 2017.
  10. Biryabarema, Elias (29 September 2011). "Uganda govt sells a 19 pct stake in sugar producer". Thomson Reuters. Retrieved 12 May 2017.
  11. 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.
  12. Ocungi, Julius (28 June 2017). "Acholi leaders criticise Amuru sugar factory land agreement". Daily Monitor. Kampala. Retrieved 19 August 2017.
  13. Rose Mirembe (20 February 2019). "A month later, Tanzania bans sugar importation again". The EastAfrican. Nairobi. Retrieved 6 March 2020.
  14. Joanita Mbabazi (1 May 2020). "Museveni Signs Sugar Law, Industrialists Disappointed". Daily Monitor. Kampala. Retrieved 2 May 2020.
  15. Daily Monitor (29 April 2020). "Uganda to export excess sugar to Tanzania, Museveni assents to Sugar Act". Daily Monitor. Kampala. Retrieved 2 May 2020.
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