KALIRO, Uganda — The government has assured investors of its commitment to transforming Uganda into an industrial hub built on processed exports, President Yoweri Museveni said in a speech read Friday at the commissioning of the Kaliro Sugar Factory.
“Industrialization is not just a policy idea — it is the future of Uganda’s prosperity,” the president’s speech, read by Trade Minister Francis Mwebesa, stated. Museveni said the country will shift its focus from exporting raw materials to producing value-added products.
The new factory, operated by the Modern Group of Companies, is a “clear demonstration” that the government’s industrialization strategy is producing tangible results, Museveni said. The facility currently produces 2,500 tonnes of sugar per day and is projected to scale up to 8,000 tonnes, aiming for more than 230,000 tonnes annually. The project is expected to create over 10,000 jobs.
Museveni also offered a strong economic outlook, projecting that Uganda’s economy will grow by at least 7% in the medium term. He reiterated that the industrial strategy is also a job creation strategy, noting that nearly 70% of the country’s population is under 30.
At the same event, Industry State Minister David Bahati announced that a new Sugar Council, approved by the Cabinet, will begin work within two weeks. The council, comprised of representatives from outgrowers, millers and government ministries, will be responsible for licensing, dispute resolution and ensuring fair pricing within the sugar industry.
Despite the optimistic tone, concerns over low farm-gate prices for sugarcane dominated the local discourse. Kaliro LC5 chairperson Elijah Kagoda urged the government and investors to prioritize farmers’ incomes. Farmers from the Busoga sub-region echoed these concerns, saying millers have reduced prices from over Shs200,000 to Shs120,000 per tonne, even as their production costs rise.
In a statement, Modern Group chairperson Ashish Monpara said the factory’s next phase will focus on sustainability, including eco-friendly waste management and
