Prime Minister Robinah Nabbanja has directed the Ministry of Trade and Industry to immediately issue a production licence to CN Sugar Company to start sugar production in Namayingo District.
The directive follows instructions from President Yoweri Museveni for the Prime Minister to prevail over the Ministry and ensure the company commences operations.
The directive was issued during a meeting at the Prime Minister's Office in Kampala attended by the Minister of State for Trade, Sanjay Tanna, and the Minister of State for Industry, David Bahati.
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CN Sugar was authorised by the Government of Uganda in 2022 to establish a sugar processing factory in Namayingo. Despite investing in machinery and mobilising land for a nucleus estate, the company's proprietors have been waiting for a production licence from the Ministry of Trade and Industry.
Speaking after the meeting, the proprietors of CN Sugar said they had fulfilled the requirements for licensing.
"We came to Uganda in 2022 after being cleared by government. We have invested heavily and we have our own nucleus estate. We have been waiting for a licence for three years, which has delayed our operations and caused us losses," a representative of CN Sugar said.
The Namayingo District Chairperson welcomed the Prime Minister's intervention, saying the factory would create jobs and provide a market for farmers.
"As Namayingo, we have been waiting for this factory. Our people need jobs and our farmers need market. We thank the Prime Minister for intervening," the LC5 Chairperson said.
Nabbanja summoned Ministers Tanna and Bahati to explain why the licence had been delayed.
Tanna said the Ministry had been enforcing a policy requiring sugar millers to have their own nucleus estate before being licensed.
"As Ministry we were implementing the sugar policy which requires every investor to have at least 50 percent of their cane from their own plantation to avoid poaching cane from other factories," Tanna said.
Bahati said the Ministry would comply with the Prime Minister's directive while ensuring that the company complies with existing regulations.
"We have heard the directive from the Prime Minister following guidance from the President. We shall issue the licence but we must ensure there is no cane poaching in Busoga sub-region," Bahati said.
In her directive, Nabbanja ordered the Ministry to issue the licence immediately, noting that the investor had met the key condition of establishing its own plantation.
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"I have listened to all parties. The investor has his own plantation and has waited long enough. I am now directing the Ministry to issue the licence immediately so that they start production and employ our people," Nabbanja said.
However, representatives of Bugiri Sugar Company, who also attended the meeting, contested the move and asked that strict conditions be imposed on CN Sugar to prevent it from sourcing cane from their registered out-growers.
"We are not against investment, but we have invested in out-growers in Busoga. CN Sugar should be licensed on condition that they do not take cane from our out-growers. Let them use their own nucleus estate," a representative of Bugiri Sugar said.
Nabbanja said the Ministry of Trade would develop clear guidelines to regulate cane sharing among sugar millers and prevent conflicts in the Busoga sub-region.
