Namayingo District’s Maiden Multi-Billion Factory in Balance, 700 Lose Jobs

The recent instruction from the Minister of Trade, Industry, and Cooperatives halting the development of the CN sugar factory in Namayingo district leaves its future in balance.

The maiden multi-billion factory in November 2022 received a certificate of no objection from CN Sugar Limited, allowing it to set up the manufacturing unit issued by the Trade Minister, Francis Mwebesa.

  However, in another letter dated June 17, 2023, Mwebesa reversed his decision, bringing up the shortage of nucleus estate of at least 500 hectares and a network of sugarcane outgrowers as the cause for halting the undertaking.

The change of his decision has so far left over 700 workers at both construction sites and the sugarcane plantation jobless.

This website has established that the minister’s decision was based on a petition compiled by the sugar industry stakeholders composed of members from already established factories fighting the existence of the latter.

In the said petition, it is indicated that CN sugar limited planted only about 300 acres (121 hectares) of sugar around the site making it about 24 percent of the required acreage of 500 hectares of the nucleus estate.

“The purpose of this letter is therefore to inform you…Advise you to identify an alternative area outside Busoga region where you can acquire substantial land to establish a nucleus estate and submit it to the ministry for consideration.” Mwebesa directed.

However, CN Sugar factory manager, Rashid Kakungulu claims that the minister was misguided, operating on rumours to decide without seeking their position.

According to Kakungulu, they have already established an additional 500 acres of sugarcane outside Namayingo district as part of the nucleus estate on top of buying more 1300 acres to establish another plantation in districts of Busia and Tororo district.

As part of the requirement for one to establish a mill, they must have at least two associations; in this case, Chia Farmer’s Comparative and Nabongo Agricultural Enterprise are in place.

Chia group with 415 members availed 845 acres and Nabongo with 139 members availed 520 acres for sugarcane growing.

“The company has signed agreements and continues to enter agreements with many out-growers, currently standing at 1000 out growers have already prepared their fields for planting sugarcane, while others have planted sugarcane,” Kakungulu notes.

Other documents obtained by this website indicate that CN Sugar Limited obtained a certificate of approval from the National Environment Authority (NEMA) signed by the Executive Director confirming that CN Sugar followed the appropriate mitigation measures and as a well fulfilled all the conditions for approval.

Others include the district trading license, and a memorandum of understanding (MoU) signed between the factory and the district leadership with ingredients such as improving feeder roads, and periodic light grading.

“Promptly pay the taxes of URA and district levies and obtain the requisite operational licenses thereto, contribute to clean and safe water within the community.” The MoU reads in parts.

The District Vice Chairperson, Abdullah Latif Kawuta is dismayed with the ministry’s instructions halting the project. According to him, it is the maiden multi-billion project in the district.

“The project has already sparked development in the area, look at the rental house prices, they have changed from shillings 10, 000 to 100,000 within just one and half years, idleness and crimes among youths have already reduced as majority embraced employment in the sugarcane gardens and the later factory sites.”

Residents of Namayingo expressed outrage over the ministry’s move, accusing the ministry of obstructing vital developments in their area yet that the factory development had already started offering local employment opportunities.

Winnie Nabirye, a resident of Kifuyo, suggested that bribery was probably involved in the decision to halt the factory’s construction works.

Another resident and a supplier of hardcore stones at the construction site, Ibrahim Mukisa reveals investing a lot in hardcore sites to supply the CN sugar construction site. He adds that now the entire investment is redundant.

The decision to halt the project has since created unrest in Namayingo, especially in Buyinja district. On Tuesday, police recklessly fired live bullets and teargas to disperse irate workers and Indian investors who were protesting the suspension of the CN Sugar factory.