Jim Kabeho, the chairperson of the Uganda Sugar Manufacturer’s Association, warned that Uganda stands to lose $150 million this year due to potential disruptions in sugar exports. Kabeho raised this concern during his appearance before Parliament’s trade committee, which is currently reviewing the Sugar Amendment Bill 2023.
The sugar manufacturers propose the insertion of a provision in the bill, suggesting a suspension of all sugar factory licences issued by the trade ministry after the enactment of the Sugar Act 2020. This halt would remain in effect until a council is established to determine their locations.
Kabeho highlighted various factors contributing to the decline of Ugandan sugar’s market in other countries. Among these factors are unstable sugar prices in Uganda compared to neighboring countries like Kenya and Tanzania, as well as concerns about the poor quality of cane used in sugar production.
Export Challenges
The chairperson of the Uganda Sugar Manufacturer’s Association emphasized the need for strategic measures to address the issues affecting the country’s sugar industry. The instability in sugar prices, especially when contrasted with neighboring countries, has resulted in a loss of market share. Additionally, concerns about the quality of cane used for sugar production further compound the challenges faced by Ugandan sugar in international markets.
Call for Halt on New Licences
The proposal to suspend new licences for sugar factories is seen as a proactive measure to assess and address the existing challenges within the industry. The creation of a council to determine the location of these factories aims to bring about a more coordinated and strategic approach to the development of the sugar sector.
