Uganda : Why govt made u-turn on Namayingo sugar mill
The Minister for Trade, Industry and Co-operatives, Mr Francis Mwebesa, who had earlier halted the construction of CN Sugar Factory at Kifuyo Village, Buyinja Sub-County, Namayingo District, has reversed his decision.In a June 17 letter, Mr Mwebesa cited the company’s failure to establish a nucleus estate of at least 500 hectares of sugarcane as the reason for the halt.
The minister’s decision was based on a petition by the sugar industry stakeholders who said CN Sugar Factory had only planted 300 hectares of sugarcane.
The Minister for Trade, Industry and Co-operatives, Mr Francis Mwebesa, who had earlier halted the construction of CN Sugar Factory at Kifuyo Village, Buyinja Sub-County, Namayingo District, has reversed his decision.
In a June 17 letter, Mr Mwebesa cited the company’s failure to establish a nucleus estate of at least 500 hectares of sugarcane as the reason for the halt.
The minister’s decision was based on a petition by the sugar industry stakeholders who said CN Sugar Factory had only planted 300 hectares of sugarcane.
Mr Mwebesa also noted that while the sugar mill was 40 percent complete and about 121 hectares of sugarcane had been planted, it should be relocated to another sub-region outside Busoga.
However, in a July 15 letter addressed to the director of CN Sugar Factory, Mr Mwebesa granted permission for the company to continue developing a sugarcane nucleus estate, with the requirement that it supply at least 50 percent of the raw cane needed for the mill.
The same letter, however, halts all activities related to erecting the sugar mill until all other conditions are met.
“… my communication was only stopping activities towards erecting a sugar mill. However, activities towards developing a sugarcane nucleus estate are allowed to continue,” the letter reads in part.
It adds: “. . . This is to also encourage you to establish a nucleus estate to supply at least 50 percent of the sugarcane requirement of the sugar mill.”
The company filed an application to establish a sugar mill in Namayingo District on September 30, 2022, and received a letter of No Objection from the Ministry of Trade on November 8, 2022. However, the ministry later revoked it.
Pressure?On June 25, locals protested the halting of the sugar mill construction.The Namayingo District leadership led by LC5 chairperson Ronald Sanya, petitioned First Deputy Prime Minister Rebecca Kadaga and the Office of the President, among others.
More than 5,000 locals signed a petition. They argued that the sugar mill was “the only hope of employment”, especially for those who had been chased from the lakes due to illegal fishing activities, while others saw the company as a source of local revenue for the district and an avenue to spur infrastructural development through corporate social responsibility.
Residents vowed not to vote for the ruling National Resistance Movement (NRM) party if the factory was not allowed to operate in the area.
“It has been a journey full of hurdles to have CN Sugar Factory here. The people of Namayingo are now ready to vote for President Museveni in the forthcoming general election as they now have an alternative source of employment, having been chased away from lakes,” Mr Ronald Sanya, the Namayingo District chairperson, said in an interview at the weekend.
The Resident District Commissioner, Mr David Kulaba Isabirye, said crime would rise in Namayingo if the government relocated the factory to another sub-region.
“I was deployed here to promote development, not to suffocate it, and I am one of those who want to see youth with employment because when they have jobs, the burden of criminality reduces,” he said.
The proprietor of CN Sugar Factory, Mr Patel Namit, said they have so far invested close to $35m (Shs129.3b), adding that the factory will employ more than 2,000 locals once production starts.Mr Namit, however, asked the government to expedite the process of issuing an operational licence so that they embark on the production process as soon as possible.
In a speech delivered by the Third Deputy Prime Minister, Ms Rukia Isanga Nakadama, on August 9, the Vice President Jessica Alupo, warned that the government would not tolerate anyone obstructing investors.
Source Link : https://www.monitor.co.ug/uganda/news/national/why-govt-made-u-turn-on-namayingo-sugar-mill-4732360
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