MAYUGE, Uganda – President Yoweri Museveni announced Wednesday that the government will purchase the Mayuge Sugar Factory and turn it over to sugarcane farmers in the Busoga region.
The announcement was made during a meeting with sugarcane growers, millers and manufacturers. The move fulfills a government pledge to build a processing plant for local farmers, and attendees unanimously approved the plan for the government to enter purchase negotiations.
“I pledged to build a sugar factory for you,” Museveni said. “Recently, the people of Mayuge Sugar Factory came and wanted to sell it to me and give it to the poor people. Do you agree?”
The crowd responded with a resounding “Yes!”
The new ownership model is expected to restore fairness to the sugar industry, ensuring that profits are returned directly to the farmers.
During the meeting, Museveni also revealed that the cabinet will decide the fate of CN Sugar Ltd. and Shakti Sugar Ltd., two factories that were closed due to operational issues. He said the matter would be handled next week.
Museveni also directed Minister for Trade, Industry and Cooperatives Francis Mwebesa to establish the long-awaited Sugar Council, which was mandated by the Sugarcane (Amendment) Act of 2023. The council is intended to regulate the industry and represent the interests of both growers and millers.
The president also addressed a complaint from Budugo Isa, chairman of the Uganda National Association of Sugarcane Growers, about a 5% levy still being deducted from farmers’ payments despite the new law.
Museveni directed that the charge “must stop” and urged sugar manufacturers to reject deliveries that are mixed with husks and tops, which he said degrade processing efficiency. Minister Mwebesa pledged to enact new regulations in line with the president’s directive.
The president also used the occasion to discuss his broader vision for wealth creation, arguing that sugarcane and cotton are not profitable for farmers with small landholdings. He recommended a “four acres model” for smallholder farmers, which includes a mix of food crops, coffee, pasture and livestock. He cited examples of farmers who generate substantial income from poultry and dairy farming on small plots of land.
The meeting was attended by key stakeholders from across Uganda’s major sugarcane growing regions, as well as senior government officials and members of Parliament.
