Mubende – The mega sugar factory is expected to offer direct employment to thousands of casual labourers and out-growers both within the Kassanda District and Uganda at large. The factory will need 1000 factory workers, 3000 workers in the agriculture department, and 1000 indirect employment.
Kassanda Sugar Limited has developed numerous strategies for creating a strong relationship between growers and the processing factory by structuring Kassanda out growers’ scheme. Notably, 1000 growers are targeted to register with Kassanda Sugar Limited whereby registration and training of 300 out growers within Kassanda District and surrounding Lake Wamala region is ongoing to reduce the demand of sugarcane needed in the factory. More so, 100 million daily cash payment to farmers has been approved, and interest free loans to farmers in terms of material loans like seed cane, fertilizers, and tractor services will be given to farmers.
The construction and establishment of Kassanda Sugar Limited started in 2020 by ALAM GROUP OF COMPANIES owned by a business man Mr. Abid Alam. Kassanda Sugar Limited is the first sugar factory in the whole greater Mubende situated in Chika village, Nalutuntu sub-county, Kassanda south constituency in Kassanda District.
The factory is expected to start producing sugar on 1st September 2021 with a crushing capacity of 1500 tons of sugar cane per day. The estate plantation covers 15000 acres and 8000 acres has been covered with sugar cane crop and sugar cane plantation is ongoing.
Kassanda sugar will be paying 1 to 2 billion tax contribution per month making it one of the leading taxpayers in Uganda. In addition, not only the mega factory will create employment but also advance household incomes in Kassanda District with sugar cane growing. More to the point, the price of sugar in Kassanda District and the whole greater Mubende will be subordinated and affordable by everyone. Further, following the completion of Kassanda Sugar, the high demand of sugar on the market within and outside the country will come to an end.
Uganda’s favorable soil conditions and climate have contributed to the country’s agricultural success. Most areas of Uganda have usually received plenty of rain. These conditions have allowed continuous cultivation in greater Mubende. The major economic activity in Mubende District has been mainly agriculture with emphasis on food crops like: maize, sweet potatoes, beans, cassava, banana, groundnuts, onions, and cabbage.
Alam Group of Companies is one of Uganda’s biggest taxpayers; it is also one of the biggest employers, employing over 1,200 Ugandans, in the most challenging sectors such as basic steel manufacturing, to tourism. This capacity building has been a major factor in creating a strong employee base. Besides the multibillion Kassanda Sugar limited, Alam Group of Companies also established Kaliro Sugar in Kaliro District in 2011 with the aim of meeting the regional deficit and giving Uganda 100% sugar self-sufficiency. The factory is placed between Lake Kyoga and Lake Victoria due to its best climate for growing premium sugar cane that would make delicious sugar.
Last year, Uganda’s annual sugar output was estimated at 510,000 metric tonnes. With Uganda’s annual consumption of 360,000 metric tonnes, approximately 150,000 metric tonnes annually are available for export.
In November 2020, national sugar output was estimated at about 550,000 metric tonnes annually. At the same time, annual national consumption was estimated at 370,000 metric tonnes.
This leaves a surplus of approximately 180,000 metric tonnes annually. Due to refusal by three of Uganda’s immediate neighbors (Rwanda, Kenya and Tanzania) to allow sugar imports from Uganda, the national sugar stockpile, as of November 2020, was estimated at about 160,000 metric tonnes of crystalline sugar powder, worth about US$45 million. The country is now looking at regional markets, including Burundi, Democratic Republic of Congo, South Sudan, Ethiopia and Zambia.