Namayingo, Uganda – A volatile situation unfolded in Namayingo district as police fired live ammunition and teargas to disperse angry workers and Indian investors protesting the suspension of the CN Sugar factory.

The Ministry of Trade, Industry, and Cooperatives suspended the factory’s operations due to the investors’ failure to establish a nucleus estate, leading to widespread unrest.

A nucleus estate is a large farm or central hub for production, with smaller suppliers feeding into it. The CN Sugar factory, which began operations in 2022, hit a major roadblock when Trade Minister Francis Mwebesa, who had initially approved the project, abruptly halted its development on June 17, 2024.

District Police Commander Joseph Kamukama led a police force to the factory to clear out workers who had gathered for their wages.

“I don’t want anyone here; work at this factory was halted. Why are people still turning up? I will not tolerate this nonsense. I am going to arrest all the Indian investors and the entire management of this place. It seems that is the language they will understand,” Kamukama asserted.

The police’s actions sparked outrage among Namayingo residents, who accused the ministry of stifling crucial development in their area. They pointed out that the factory had already started providing much-needed local employment.

Winnie Nabirye, a resident of Kifuyo, speculated that bribery might have played a role in the decision to stop the factory’s construction.

Rashid Kakungulu, the manager of the CN Sugar factory, criticized the police’s heavy-handed tactics, noting that security personnel were beaten and detained.

“Despite halting the activities, we maintained the private security in place to protect the multi-million equipment at stake, but the officers were disarmed, beaten, and arrested,” Kakungulu stated.

The factory initially received a certificate of no objection from Minister Mwebesa in November 2022, permitting CN Sugar Limited to set up the manufacturing unit.

The investors proceeded to build essential facilities, including a perimeter wall, lagoons, a canteen, and an unloading device for the mill. However, in a letter dated June 17, 2023, Mwebesa reversed his decision, citing the lack of a nucleus estate as the reason for halting the project.

The suspension and the ensuing police action have left many workers unpaid, fueling further discontent among the local population.