President Yoweri Kaguta Museveni and Minister Trade, Industry and Cooperatives, Hon. Francis Mwebesa commissions Kinyara Industrial White Sugar Refinery Plant
President Yoweri Kaguta Museveni and Minister Trade, Industry and Cooperatives, Hon. Francis Mwebesa commissions Kinyara Industrial White Sugar Refinery Plant.
On Saturday 5th February, the President of Uganda His Excellency Yoweri Kaguta Museveni together with the Minister of Trade, Industry and Cooperatives, Hon. Francis Mwebesa commissioned a 15million USD Kinyara Industrial White Sugar Refinery plant in Masindi District.
The refinery will produce 60,000 metric tons of industrial white sugar annually, consuming about 70,000 metric tons of mill brown sugar as raw material. With the refinery now in existence, the raw material requirement will increase by 823,530 metric tonnes of sugar cane as an addition to the current 1.3million metric tonnes of sugar cane; consequently, leading to social-economic multiplier effects to the out-growers, local and national economy.
During the commissioning, the Minister of Trade, Industry and Cooperatives, Hon Francis Mwebesa noted that tonnes produced are still below the local demand for industrial sugar which ranges from 78,000 metric tons to 90,000 metric tons annually.
The President assured Ugandans of the market for their surplus sugar amounting to 220,000 metric tons out of the 600,000 metric tons produced annually yet local consumption remains at 380,000 metric tons.
Benefits of the industrial sugar refinery to the Economy
- a) Reduction in excess sugar stocks: Uganda is a surplus sugar-producing country with an annual average production of about 510,000 metric tonnes and a national consumption that is about 360,000 metric tonnes annually; which is about 70% of the national production. Therefore, the refinery will utilize the excess stocks being one of the key remedies to excess sugar production.
- b) Employment: In addition to the 12,000 both directly and indirectly employed persons; the refinery will provide direct employment to an additional 150 persons and many more indirectly.
- c) Industrial white sugar readily available: Consumers of industrial white sugar such as beverage manufacturers, bakeries, confectionaries among other industrial sugar consumers shall be able to obtain the industrial sugar easily with a tremendously reduced lag time between order and delivery.
- d) Improvement in the balance of payments: This is because the industrial white sugar that would have been imported is now produced in Uganda hence imports for the same will be reduced. Uganda loses about USD 50million annually in the importation of industrial sugar.
- e) Improved revenue injection into the economy: This will emanate from tax revenues as a result of local trade in industrial sugar, additional employment which increases disposable incomes and consumption expenditure among others.
- f) Strategic alignment with vision 2040: The refinery is in-line with both the national industrial policy and the national industrial sector strategic plan which feed into Vision 2040, advocating for acts of value addition as part of the strategies to achieve the vision.