Sugarcane farmers in Namayingo District, Uganda, have expressed frustration over the delayed licensing of CN Sugar Company, whose factory project has stalled for three years. The farmers gathered at the company's stalled factory site in Kifuyo Village, Buyinja Sub-county, to demand an explanation from the Sugar Council. They accused the council of frustrating the project despite a directive from Prime Minister Robinah Nabbanja to expedite the licensing process.
The delayed licensing has left farmers struggling to find reliable markets for their sugarcane, forcing them to depend on middlemen and distant sugar factories that offer poor prices and increase transportation costs. Some farmers alleged that members of the Sugar Council visit the CN Sugar project, soliciting money from investors under the guise of resolving the licensing impasse. These allegations were made during a heated meeting between farmers, local leaders, Sugar Council officials, and representatives of sugar companies and the Ministry of Trade, Industry and Cooperatives.
The stalled CN Sugar project has deprived the area of anticipated employment opportunities, a ready market for sugarcane, and other economic benefits associated with a functioning sugar-processing plant. At the CN Sugar site, construction activity has largely stopped, with machinery lying idle and parts of the property overgrown with vegetation. The project's stagnation has significant implications for the local economy and the livelihoods of farmers who invested in sugarcane production.
A meeting between Sugar Council officials, farmers, and local leaders was held to address the concerns. The meeting was chaired by Robert Atugonza, representing the chairperson of the Sugar Council. Farmers, including Deo Disiko and Idah Kigada, narrated the challenges they face, particularly the lack of a dependable market for their cane. They said middlemen take advantage of limited marketing options to buy sugarcane at low prices, leaving growers with little or no profit.
The chairperson of Sango A Village in Kifuyo Parish, Buyinja Sub-county, expressed emotional concerns about the government's commitment to improving the economic wellbeing of residents. He invoked the National Resistance Movement's message of "prosperity for all," arguing that the community cannot realise meaningful economic transformation while a major industrial investment remains inactive. An operational CN Sugar factory would create employment, provide a dependable market for farmers, and increase local government revenue.
Namayingo District Chairperson Ronald Sanya issued a strong warning, saying the district could consider passing a resolution discouraging sugarcane growing if the licensing impasse persists. Sanya cautioned other sugar mills against actions that could undermine the establishment of CN Sugar. Responding to concerns, Atugonza said the Sugar Council would prepare a report based on its findings and submit it in accordance with the law. He attributed the licensing delay partly to objections raised by other sugar companies, including concerns relating to land.
The licensing dispute highlights the complexities of Uganda's sugar industry, which operates within a regulatory framework intended to coordinate the establishment and expansion of sugar factories and protect the interests of existing producers, farmers, and investors. For farmers in Namayingo and neighbouring parts of Mayuge, the immediate concern is whether the stalled CN Sugar project will eventually become operational and provide the local market they anticipated when they invested in sugarcane. CN Sugar's land holdings are approximately 3,000 acres in Nawampogo Village, Bukabu Parish, Bukaboli Sub-county in Mayuge District.
Key points
- The delayed licensing of CN Sugar Company has left sugarcane farmers in Namayingo District struggling to find reliable markets.
- The stalled project has significant implications for the local economy, including lost employment opportunities and reduced economic benefits.
- The Sugar Council attributes the licensing delay partly to objections raised by other sugar companies, including concerns relating to land.
