Uganda: Atiak sugar factory seeks government funding

Amuru: Atiak Sugar Factory in Amuru District is requesting more government funding to install water pipelines from the River Nile to support irrigation and ensure sustainable sugarcane cultivation. This follows a government investment of 108 billion shillings in the 2022/23 fiscal year to mechanize and improve irrigation infrastructure, reports The Independent.

The factory, which closed in April 2022 due to a cane shortage and fire incidents in its plantations, can only resume full operations with a stable irrigation system, according to Director of Planning Mohamoud Ahmed. He highlighted the need for government intervention to set up a 22-kilometre pipeline from the River Nile to the factory.

The irrigation project, which would cost 43 million US dollars, aims to boost sugarcane growing during the dry season. While the factory has made progress in establishing irrigation infrastructure, full-scale operations are still dependent on continuous water supply from the Nile.

During a visit by the Leader of Opposition Joel Ssesonyi and his Shadow Cabinet, concerns were raised about the sustainability and transparency of the project, given that the government has already invested 553.7 billion shillings into the factory. Despite these concerns, Atiak Sugar Factory has made significant exports to Kenya and South Sudan, generating revenue from its sugar production.

The factory remains committed to reducing its reliance on rain-fed agriculture and mitigating the effects of climate change through improved irrigation systems. However, further government support is critical to ensuring the project’s success.

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