Cabinet to decide fate for two sugar factories which were stopped due to operational issues

President Museveni has announced that the government will purchase the Mayuge Sugar Factory for Busoga sugarcane farmers. The President made the announcement on Wednesday August 6, 2025, while meeting sugarcane growers, millers, and sugar manufacturers from across Uganda at Kityerera State Lodge, Mayuge. During the meeting, the farmers gave the government a green light to go into purchase negotiations with the sugar factory. 

The new ownership model is expected to restore fairness in the sugar industry and ensure that profits return directly to the farmers.

“I pledged to build a sugar factory for you. 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?” President Museveni asked, receiving a resounding “Yes!” from the farmers. “Okay, we shall negotiate with them and buy it for you,” the President assured. 

The meeting brought together key stakeholders from Uganda’s major sugarcane growing regions — Busoga, Buganda, Western, and Northern Uganda — and is part of President Museveni’s wider agenda to reform the agro-industrial sector and uplift communities from poverty.

In the same meeting, President Museveni revealed that the cabinet will decide the fate of CN Sugar Ltd and Shakti Sugar limited which were closed due operational issues.

He said the issue should be handled next week on Monday.

Who should grow sugarcane?
The President gave a detailed economic analysis of sugarcane production, noting that the average returns — UGX 4 million per acre annually — are insufficient for families with small land holdings.

“Sugarcane should be grown by people with large chunks of land. Those with 2 acres will never get out of poverty with sugarcane, let’s be clear. You, the sugarcane growers, must agree on the minimum land size for one to engage in sugarcane farming,” H.E. Museveni said.

President Museveni highlighted the case of Joseph Ijara of Serere, who uses only 2.5 acres to generate over UGX 1 billion annually through poultry and zero-grazing dairy farming.
“Ijara sells 310 eggs a day and 320 liters of milk daily. That’s what I have been talking about for years,” the President emphasized. “Another farmer, Nyakana, earns UGX 300,000 daily from eggs — that’s UGX 108 million a year.”

By ChimpReports