Namayingo, Uganda – Namayingo District has been plunged into a state of turmoil following the controversial suspension of CN Sugar Factory by the Minister of Trade, Industry, and Cooperatives.
The decision has not only left over 800 workers jobless but has also financially impacted residents supplying construction materials for the new multi-billion CN Sugar project.
Allegations of Monopoly and Manipulation
The suspension, which was announced by Trade Minister Francis Mwebesa, has sparked widespread rumours and accusations.
Social media and local discussions are rife with allegations that Bugiri Sugar Factory, a rival operating within the same district, orchestrated the closure to eliminate competition and establish a monopoly in the region’s sugar production.
According to protesters, Bugiri Sugar Factory aimed to stifle the emerging competition posed by CN Sugar Factory, fearing it would undermine its market dominance.
Residents’ Outcry and Protests
The decision to suspend CN Sugar Factory’s operations has incited significant backlash from residents, CN workers, and community leaders. Many are convinced that the minister’s decision was influenced by external actors, aiming to protect Bugiri Sugar Factory’s interests.
Mark Siminyu, a vocal resident, stated, “We will not allow corrupt leaders to restrict the improvement of our area. Consider the out-growers who’ve invested in developing sugarcane. Who will purchase it if the Indian traders leave? We are making this area a no-pass zone for Bugiri Sugar, or we will burn their vehicles.”
Government’s Justification
Minister Mwebesa defended the suspension by citing regulatory non-compliance by CN Sugar during its startup phase. Despite having granted CN Sugar Limited a Certificate of No Objection in November 2022, the minister reversed this decision in June 2023, citing the absence of a required nucleus property of at least 500 hectares and a network of sugarcane out-growers as reasons for halting the venture.
Impact on Community Stability
The arrival of CN Sugar Factory significantly reduced youth idleness and incidents of coffee theft, according to 80-year-old resident Juma Kasadha. With the factory’s operations now halted, Kasadha fears a resurgence of youth-related problems, which could destabilize the peace and security of the village.
Political and Legal Repercussions
Namayingo LC5 Chairperson Ronald Ssanya has vowed to retaliate if Bugiri Sugar Factory does not support development in Namayingo.
“We shall also suspend its operations in the district,” he warned. Ssanya has petitioned First Deputy Prime Minister Rebecca Kadaga and the Minister for Trade, emphasizing the factory’s significance to the community.
He also submitted recordings allegedly showing DPC Kamukama attempting to bribe him to betray his constituents’ interests.
Rashid Kakungulu, manager of CN Sugar Factory, expressed frustration over the suspension, claiming they had been working to comply with all requirements but felt ignored by the minister. The Namayingo District Woman Member of Parliament and the Bukooli South MP have both pledged to oppose any actions obstructing local development.
Escalating Tensions and Police Involvement
At the end of the week, police, led by DPC Joseph Kamukama, raided CN Sugar Factory, using tear gas and live ammunition to disperse workers and management, further intensifying the conflict.
Efforts to contact the owners of Bugiri Sugar Factory for comment were unsuccessful at the time of reporting. As the situation develops, the local community continues to demand transparency and accountability from both the government and rival sugar factory operators, hoping to resolve the conflict and restore stability to Namayingo District.
