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Kakira Sugar Works to Government: Relocate New Factories :: Uganda Radionetwork
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Kakira Sugar Works to Government: Relocate New Factories

While appearing before the Tourism, Trade and Industry committee of parliament, officials of Kakira Sugar Works led by Jim Kabeho Mwine, the Director Madhvani Group and Chairman Uganda Sugar Manufacturer’s Association, the group noted that, zoning is of a great importance in the sugar industry and should be respected.
Jim Mwine Kabeho appearing before parliament on sugar production

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Kakira Sugar Works has expressed fear of losing business citing a number of factories, which have set up business close to its location. The sugar company has tasked government to relocate the new ffactories to other areas before the sugar industry is distorted. While appearing before the Tourism, Trade and Industry committee of parliament, officials of Kakira Sugar Works led by Jim Kabeho Mwine, the Director Madhvani Group and Chairman Uganda Sugar Manufacturer’s Association, the group noted that, zoning is of a great importance in the sugar industry and should be respected.

 

They cited the sugar policy, which requires that sugar companies be separated by a distances of 25 kilometers.Kabeho saysthat with a 25 kilometer radius, factories are allowed to expand, to diversify, enjoy economies of scale and help the communities they live in. He says the strict enforcement of the zoning system will also prevent the crashing of immature cane, which results from unnecessary competition. 

According to Kabeho, they are faced with a challenge of new factories, which just show up with machinery; position themselves next to existing factories and start crashing cane without any plans of developing farmers. He says factories should start with putting up their gardens, create and developer farmers groups before setting up machinery. Kabeho says more than five factories have come up without developing farmers and are located next to Sugar Cooperation of Lugazi and Kakira Sugar works.

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He says Kakira Sugar works can’t expand to the south before of the lake, while the surrounding pieces of land have developed into centers, leaving very little land for cane growing. Kabeho argues that the new factories should be relocated to other areas of Uganda where there is enough soils, rain and water. He explains that Kakira sugar works is considering expanding production to 180,000 tons of sugar adding that, this is the highest capacity they can make in Busoga region because some land has to be reserved for other crop production and development.

Kabeho explains that it is because of the limited land for expansion why they have been pushing to move to other areas such as Amuru, Southern Sudan, Rwanda and Tanzania. He warned that unless something is done factories will ran away from their responsibilities and invest in cane growing, which will kill or stagnant the industry within a very short time like it happened in Kenya and India.

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When reminded that it is the same government, which licensed the companies in Busoga they are asking it to relocate, Kabeho said the decisions were rushed at the expense of planning that they insist should be corrected. Kenneth Musinga Barungi, the Assistant to the General Manager of Kakira Sugar Limited argued that the new factories have affected the exportation and production of sugar due to the dependence on the same cane growers in the area.

He said elsewhere governments have relocated industries to make them viable or else risk losing both the new and old factories. Barungi said Kakira can also resort to only crashing cane for sugar producing like the new factories but they are committed to social corporate responsibility like offering Scholarships and construction of roads for the betterment of the community. Grace Namara, the Vice Chairperson of the Trade Committee said the committee will pay a visit to Kakira to establish more facts on their grievances.

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