Namayingo, Uganda – The recent suspension of the CN Sugar Factory, a multi-billion shilling investment, has thrown its future into uncertainty and left over 700 workers jobless. This decision, issued by the Minister of Trade, Industry, and Cooperatives, Francis Mwebesa, has stirred significant unrest in the district.

In November 2022, CN Sugar Limited received a certificate of no objection from Minister Mwebesa, allowing the company to establish the factory.

However, in a surprising turn of events on June 17, 2023, Mwebesa reversed his decision. He cited the company’s failure to meet the requirement of a nucleus estate of at least 500 hectares and a network of sugarcane out-growers as the primary reason for halting the project.

This abrupt decision has affected the livelihood of over 700 workers who were employed at both the construction sites and the sugarcane plantation.

An investigation revealed that the minister’s decision was influenced by a petition from established sugar industry stakeholders who opposed the new factory. The petition indicated that CN Sugar Limited had only planted about 300 acres (121 hectares) of sugarcane, a mere 24 percent of the required 500 hectares.  In his directive, Mwebesa advised CN Sugar Limited to find an alternative location outside the Busoga region to establish a substantial nucleus estate.

However, CN Sugar Factory manager, Rashid Kakungulu, contested the minister’s claims.

He argued that the decision was based on misinformation and that the company had indeed secured an additional 500 acres of sugarcane outside Namayingo district.

Furthermore, they had purchased 1,300 acres in the districts of Busia and Tororo for further plantation development.

To meet the regulatory requirements, CN Sugar also formed two associations: Chia Farmer’s Cooperative and Nabongo Agricultural Enterprise. These groups had collectively provided 1,365 acres for sugarcane cultivation.

Kakungulu emphasized that the company had already signed agreements with around 1,000 out-growers, who were preparing their fields or had already planted sugarcane.

He noted that CN Sugar Limited had received approval from the National Environment Authority (NEMA) and had all necessary operational licenses, including a district trading license and a memorandum of understanding with the district leadership.

The District Vice Chairperson, Abdullah Latif Kawuta, expressed his dismay over the suspension.

He highlighted the positive impact the project had already had on the local economy, noting significant increases in rental prices and a reduction in youth idleness and crime due to employment opportunities provided by the factory.

Residents of Namayingo have voiced their outrage over the ministry’s decision, accusing it of hindering vital development in the area.

Winnie Nabirye, a resident of Kifuyo, suggested that bribery might have influenced the halt in construction. Another resident, Ibrahim Mukisa, who had invested heavily in supplying materials for the construction site, lamented the redundancy of his investment.

The suspension has sparked unrest in Namayingo, particularly in Buyinja district. On Tuesday, police fired live bullets and teargas to disperse irate workers and Indian investors protesting the decision.

The future of Namayingo’s maiden multi-billion shilling factory hangs in the balance, as the community and stakeholders await further developments.