Parliament has called on Finance Minister Matia Kasaija to explain why the Atiak Sugar Factory in Amuru district remains non-operational despite the Government’s substantial investment of over Sh553.7 billion. This demand was made during a plenary session after the Leader of the Opposition, Joel Ssenyonyi, raised concerns about the stalled project.
Ssenyonyi informed Parliament, led by Speaker Anita Among, that despite the massive government funds allocated to the factory, not a single bag of sugar has been produced. He noted that the project initially held great promise for both northern Uganda and the entire country but has since been plagued by numerous issues, leaving many questions unanswered.
“This is a project where the Government has invested a lot of taxpayers’ money. But when we visited the company as part of our oversight duties, we found that the factory has not produced any sugar to date. It was an exciting initiative for the people of northern Uganda and the country at large, but there are several unresolved issues. The factory is not operational, and there is uncertainty about when production will begin,” Ssenyonyi explained.
He further questioned the rationale behind continued funding for a factory that has not yet commenced operations. Ssenyonyi also sought clarification on the Government’s ownership stake in the company, asking how many shares it holds and how taxpayers’ investments are being safeguarded.
“Does the Government actually have shares in the factory? If so, how many? How are we ensuring that taxpayers’ money is yielding returns? Nearly every year, there is a request for more funds for this entity,” he added.
Unlike previous visits to other projects where MPs were denied access, Ssenyonyi noted that the management of Atiak Sugar Factory allowed them to tour the premises and engage in discussions. However, during these meetings, the factory’s management expressed frustration over the Uganda Development Corporation’s (UDC) absence and the lack of raw materials necessary for production.
“The company is frustrated because the Uganda Development Corporation (UDC), which is supposed to represent the Government, is absent. They also lack the raw materials needed for production and are still waiting for all the required machinery to operate,” Ssenyonyi said.
Speaker Among requested Ssenyonyi to prepare a report on his visit to Atiak Sugar Factory, as well as visits to Roko Construction Ltd and Dei Biopharma Ltd, so that the relevant ministers can provide responses.
President Yoweri Museveni has previously issued warnings against those obstructing the progress of the Atiak Sugar Factory project. In April 2024, during a field visit to assess the state of the multi-billion shilling sugar project, Museveni emphasized that anyone frustrating the project is hindering industrialization and is an enemy of Uganda and Africa.
The Atiak Sugar Factory was established by Horyal Holding Investment Co Ltd under a public-private partnership. In 2018, the Government, through UDC, invested $5.5 million for a 10.1% stake in the factory. Over time, the Government’s stake grew to 49%, with additional investments from UDC and National Agricultural Advisory Services (NAADS) totaling Sh553.7 billion.
The factory was envisioned as a key driver of economic recovery in northern Uganda, creating jobs and empowering women, who were expected to be the main suppliers of sugarcane for the factory. However, several challenges have emerged, including the lack of raw materials, the failure to plant sufficient sugarcane on the 60,000 acres provided by the local community, and a lack of responsiveness from UDC, the Ministry of Finance, and the Ministry of Trade.
Investment and Stake Overview
| Year | Government Investment | Government Stake |
|---|---|---|
| 2018 | $5.5 million | 10.1% |
| 2024 (Total) | Sh553.7 billion | 49% |
