Kaliro Sugar Factory revamped, Museveni hails boom in sugar industry

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With the increasing number of investors in the sugar industry, particularly the Modern Group, which has revamped the Kaliro Sugar factory, President Yoweri Museveni states that Uganda may no longer experience sugar scarcity.

The President said Uganda now takes pride in having over five sugar factories, including the new Kaliro Sugar Factory, which marks a significant milestone in the country’s industrial and economic journey.

Modern Group Chairman Ashish Monpara (right) leading the Minister of Trade, Industry and Cooperatives Francis Mwebesa (2nd right), the Minister of State for Investment and Privatisation Evelyn Anite (middle) and the Minister of State for Trade David Bahati (2nd left) in touring Kaliro Sugar factory on Friday in Kaliro district during its launch. (Photo by Donald Kiirya)

This was part of his message delivered to the gathering by Minister of Trade, Industry and Cooperatives, Francis Mwebesa, during the inauguration of the Kaliro Sugar Factory under the Modern Group on Friday.

The event was attended by investors, outgrower farmers and Ministers who included Evelyn Anite, the Minister of State for Investment and Privatisation and David Bahati, the Minister of State for Trade.

“Some of you remember, when I came to power in 1986, at a certain point, most especially in Kampala, there was rationing of sugar amongst suppliers and agents and rationing of other essential commodities like soap and certain drinks, beers and soda,” Museveni said.

Modern Group Chairman Ashish Monpara (right) leading the Minister of Trade, Industry and Cooperatives Francis Mwebesa (2nd right), the Minister of State for Investment and Privatisation Evelyn Anite (middle) and the Minister of State for Trade David Bahati (2nd left) in touring Kaliro Sugar factory on Friday in Kaliro district during its launch. (Photo by Donald Kiirya)

“Your production has caused a boost in Uganda’s industrialisation strategy as well as economic growth over the years. Uganda has grown its production capacity in many other commodities, and I encourage all the stakeholders in the industrial production to choose Uganda as the best investment destination,” Museveni noted.

He urged investors to aim higher in the years to come because with Africa integration, the demand for Uganda’s sugar and other products will be higher than it is now.

“Early preparation will enable you to meet the demand for bigger African and European markets. I finally encourage you to also invest in other Agro-based products because the Agricultural sector in Uganda possesses more production and more opportunities,” Museveni said.

David Bahati, the Minister of State for Trade, expressed special gratitude to Ashish Monpara and the Modern Group for successfully establishing nearly eight industries in the country within six years, creating jobs for almost 4,000 people.

From L-R: The Head of OWC in Busoga sub-region, Col. Dhamuzungu Oguli, Modern Group's Rajin Patel, the Minister of State for Investment and Privatisation Evelyn Anite, Modern Group's Chairman Ashish Monpara, the Minister of Trade, Industry and Cooperatives Francis Mwebesa, the Minister of State for Trade David Bahati and Kaliro RDC Thomas Matende in a group photograph inside Kaliro Sugar factory during its launch in Kaliro district on Friday. (Photo by Donald Kiirya)

 “Our Country is now producing 600 metric tons of sugar, and the demand for sugar is currently 390 metric tons, but the demand in the East African community is 1.5 metric tons, meaning that Monpara will still have an opportunity—you have a market to supply, and therefore this investment is not in vain,” Bahati noted.

He revealed that the sugar industry currently contributes sh350 billion to the national treasury and further thanked the farmers and outgrowers for their contribution.

“Our industry growth now in terms of GDP, industry contributes 28% to our GDP, and manufacturing alone contributes 16.5% to our GDP. The revenue we get from manufacturing now stands at 35% of the national revenue; we have made progress,” Bahati said, adding that they wouldn’t have made it if it weren't for the wise and good leadership of President Yoweri Museveni.

He further revealed to investors and outgrower farmers that the sugar council was approved on August 18th, and it is going to be inaugurated in two weeks and that after its inauguration, outgrower sugarcane farmers through their council will be making decisions about the sugar industry.

He said the Sugar Council has four farmer representatives and three miller representatives.

The Minister of State for Investment and Privatisation, Evelyn Anite, told farmers that through the able leadership of President Yoweri Museveni, peace and stability have been realised in the country, and that is why the country has industries.

Modern Group chairman Ashish Monpara, in his response to challenges expressed by the Kaliro district LC 5 chairperson, Elijah Kagoda and the Chairman of Kaliro Sugar Outgrowers Association, Nathan Mumolu, which included working on the installation of a transformer at Bwayuya trading centre, increasing scholarships and constructing a modern primary school, Monpara promised to install the transformer at Bwayuya trading centre to connect the whole village with electricity.

"Kaliro sugar was never in the plan to acquire, but we saw an opportunity when His Excellency President Museveni told us to take up the challenge and that there is security, and he believed in my team and me that we would be able to take over and turn around the whole company, a thing that has been done," Monpara said. 

Modern Groups' Rajin Patel (3rd left), Modern Group Chairman Ashish Monpara (4th left), the Minister of Trade, Industry and Cooperatives Francis Mwebesa (middle) the Minister of State for Investment and Privatisation Evelyn Anite (4th right), the Minister of State for Trade David Bahati (3rd right) and Kaliro RDC Thomas Matende (2nd right) in a group photograph after launching the Kaliro Sugar Factory on Friday in Kaliro district. (Photo by Donald Kiirya)

He also promised to construct a modern Bwayuya Primary School and increase scholarships from 6 to 30 as agreed in a recent meeting with outgrowers.

Monpara said that the factory has an initial crushing capacity of 2,500 tons of sugarcane per day, and according to company projections, this will produce 78,000 tons of raw sugar annually and create 1,500 direct jobs.

“In future, we are going to set up a number of industries—investing about $700 million as of now, and in the near future we shall invest about $400 million in a number of industries from power, sugar, pharmaceuticals and steel, among others,” Monpara elaborated.

At the climax, guests were treated to entertainment from artists like Spice Diana, Ghetto Kids, Land Soldier, Cool Demus Omubedde and Triple Virus, among others.