Sugar millers in Busoga are said to have been unhappy with the coming up of yet another competitor
A U-turn decision by the government halting the construction of a sugar mill in Namayingo has left district leaders and job hopefuls at sixes and sevens.
In November 2022, Trade minister Francis Mwebesa granted CN Sugar Limited a certificate of no objection to set up a manufacturing unit.
However, in another letter dated June 17, 2023, Mwebesa reversed his decision, citing shortage of nucleus estate of at least 500 hectares and a network of sugarcane out-grower.
The revocation 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 sugar industry stakeholders composed of members from already established millers in and around Busoga.
In the said petition, it is indicated that CN Sugar limited planted only about 300 acres (121 hectares) of sugar on its estate, leaving it languishing at just about 24 percent of the required acreage of 500 for a nucleus estate.
"The purpose of this letter is to advise you to identify an alternative area outside Busoga where you can acquire substantial land to establish a nucleus estate and submit it to the ministry for consideration," Mwebesa said.
However, CN Sugar manager Rashid Kakungulu claims that the minister was misguided, operating on rumours to take a decision without seeking their position.
According to Kakungulu, they have already established an additional 500 acres of sugarcane outside Namayingo as part of the nucleus estate on top of buying more 1,300 acres to establish another plantation in Busia and Tororo districts.
As part of the requirement for one to establish a sugar mill, they must have at least two associations. CN Sugar said it has already entered into a memorandum of understanding with 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 1,000 out growers," Kakungulu said.
Other documents indicate that CN Sugar 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.
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Others include the district trading licence, and a memorandum of understanding (MoU) signed between the factory and the district leadership to improve feeder roads.
The District Vice Chairperson, Mr Abdallah Twaha Kawuta, expressed dismay at the ministry's instructions halting the project. According to him, it is the first ever multi-billion project in the district.
Residents of Namayingo are also bemused by the ministry's decision, saying it sabotages vital developments in their area.
Ms Winnie Nabirye, a resident of Kifuyo, suggested that there was malice in the said petition by sugar millers against the putting up of CN Sugar Limited.
The decision to halt the project has since created unrest in Namayingo especially in Buyinja Sub-country. On Tuesday, police fired live bullets and teargas to disperse irate workers and Indian investors who were protesting the suspension of the construction of the CN Sugar Ltd.
