Jubilations are going on in Namayingo district following a decision that has brought relief to over 800 workers, residents, and local leaders.
After a long battle over the fate of the CN Sugar factory, Trade Minister Francis Mwebesa has bowed to public pressure, allowing the project to continue its operations.
For the residents and workers, the reversal of the minister’s decision is just a lifeline restored.
Initially, the CN Sugar project had become a symbol of hope before it was halted due to alleged non-compliance issues.
These included the absence of a sufficient nucleus property and a network of sugarcane out-growers.
The abrupt suspension caused uncertainty about the project’s future, sparking widespread protests and prompting burning appeals from local leaders and affected communities.
The outpouring of support and advocacy from leaders and residents indicates the project’s integral role in the local economy, where it has already become a substantial employer and economic driver.
With livelihoods at stake and economic prospects hanging in the balance, the community mobilised, leveraging public sentiment and strategic advocacy to sway Minister Mwebesa’s decision.
As the factory gears up to resume its operations and development, the mood among stakeholders is one of cautious optimism, tempered by the awareness of the challenges and responsibilities that lie ahead.
Background
Mwebesa, suspended the improvement and activities of CN Sugar, citing regulatory non-compliance of the Indian investor.
The minister highlighted that the new factory lacked a nucleus property of at least 500 hectares and a network of sugarcane farmers. This decision faced strong opposition from local leaders and residents who argued that the project had already provided jobs for over 800 people initially.
“The revocation of the No Objection Certificate was because the joint verification team that visited you on 13th May 2024 established that CN Sugar Limited had planted only 300 acres (121 hectares) of sugarcane which is 24% of the required acreage of the 500 hectares nucleus estate,” Mwebesa indicated in the letter dated July 5.
He further clarified: “I want to emphasise that my directive was aimed at halting activities specifically related to constructing the sugar mill. However, efforts to develop the sugarcane plantation necessary to supply at least 50% of the mill’s needs are permitted to proceed.”
Mwebesa’s recent decision came after petitions from Namayingo District Chairperson Ronald Ssanya, First Deputy Prime Minister Rebecca Kadaga, and himself, indicating the significance of the factory to the region.
Additionally, Ssanya requested the Inspector General of Police (IGP) to transfer District Police Commander (DPC) Joseph Kamukama, alleging his involvement in questionable activities aimed at obstructing the establishment of the district’s inaugural multi-billion factory.
In the recent community gathering organized by Deputy Resident District Commissioner Trevor Baleke, Ssanya and residents protested.
They opposed any further business transactions by the Bugiri sugar factory in Namayingo district.
They claimed it was responsible for the closure of CN Sugar to monopolize sugar production, fearing competition from the new CN Sugar Factory could threaten their business and market dominance.
Rival Sugar Factory
Naboth Kusiima, the manager of the Bugiri sugar factory, clarifies that while the new CN factory did not follow instructions leading to its closure, they were not responsible for it.
“Yes, they might claim that we are responsible for their setbacks, but the truth is they haven’t adhered to the instructions given. Any protests they organize are merely aimed at garnering public sympathy,” Kusiima noted.
DPC, Bugiri Sugar Factory Ploy
In an audio recording obtained by this website, DPC Kamukama is heard stating that not only Bugiri but all sugar millers across the Busoga region oppose the establishment of the new mill in Namayingo.
According to Milan Dhubari, chairperson of the Sugarcane Millers Association, some companies setting up sugar mills got their licenses illegally, going against the rules in the Sugar Act 2020.
“The statement reads, ‘Despite this directive, certain companies have begun building sugar factories since the start of 2024, openly defying the Ministry’s guidelines and breaking the law,” he recounted.
Despite repeated warnings to halt construction, Dhubari added, these companies continued unabated. In April 2024, some misled Ministry officials by falsely claiming no construction was underway, even requesting verification visits to support their claims.
“However, these companies have admitted to continuing construction, which breaks the law,” Dhubari explained.
CN Sugar Factory Losses
Rashid Kakungulu, Manager for CN Sugar, mentioned that the Indian investors have already invested more than 12 million dollars into the project.
Additionally, he noted, that they have paid Uganda Revenue Authority (URA) over one billion shillings in taxes and clearance fees for the machines and equipment required to set up the mill.
CID Launches Investigations
Following the district chairperson’s petition to transfer the DPC, investigations have now moved to the regional police.
Prossy Namukasa, the Regional CID Officer for Busoga East, has summoned several individuals supporting the CN sugar establishment for questioning about the vrious allegations.
Also summoned include the manager of CN Sugar on charges related to the alleged illegal establishment of a sugar factory.
Additionally, the district chairperson and his deputy have been summoned over accusations of incitement to violence and threats of defamation.
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