President Yoweri Kaguta Museveni has announced that the government will purchase Mayuge Sugar Factory to benefit sugarcane farmers in Busoga, in a strategic move to reform the sugar industry and empower rural growers.
The President made the declaration on Wednesday, August 6, 2025, during a meeting with sugarcane farmers, millers, and sugar manufacturers at Kityerera State Lodge in Mayuge District. The announcement is in fulfillment of a long-standing government pledge to build a sugar processing plant for the farmers in the region.
“I pledged to build a sugar factory for you. Recently, the people of Mayuge Sugar Factory came and wanted to sell it to me and give it to the poor people. Do you agree?” President Museveni asked, receiving a loud approval from the farmers. “Okay, we shall negotiate with them and buy it for you.”
Farmers welcomed the plan and gave the government a green light to begin negotiations. Once acquired, the factory is expected to restore equity in the sugar sector and return profits directly to producers.
The meeting drew stakeholders from Uganda’s key sugar-growing regions — Busoga, Buganda, Western, and Northern Uganda — as part of the President’s wider plan to strengthen agro-industrialization and fight poverty.
During the same meeting, President Museveni directed that the Cabinet must resolve the fate of CN Sugar Ltd and Shakti Sugar Ltd by Monday next week. The two factories had been halted over operational concerns.
He also instructed the Minister for Trade, Industry and Cooperatives, Francis Mwebesa, to finalize the establishment of the long-awaited Sugar Council under the Sugarcane (Amendment) Act, 2023. Museveni ordered that the names of the council members be confirmed by next week.
The council will regulate the sugar industry and represent both out-growers and millers. Its composition will include a chairperson, four representatives of sugarcane growers, four from millers, and Permanent Secretaries from the Ministries of Agriculture, Finance, and Trade.
Budugo Isa, Chairperson of the Uganda National Association of Sugarcane Growers, raised concern over the continued deduction of a 5% cost management fee from farmers — a charge that was supposed to be eliminated under the new law.
“We had hope in this council, but the Ministry of Trade is taking too long to implement it,” Budugo said.
In response, President Museveni ordered the immediate halt of the 5% levy and urged millers to reject sugarcane mixed with husks and tops, which lower processing quality.
“Can we now agree? Reject the unclean sugarcane,” he said. “And the 5% charge must stop.”
Minister Mwebesa pledged to enforce the President’s orders and confirmed that government had secured funds to compensate suppliers of Atiak Sugar Factory, with payments set for next week.
In a broader economic address, the President emphasized the need for land-based planning in agriculture. He cautioned farmers with small land holdings against growing sugarcane, citing low returns per acre.
“Sugarcane should be grown by people with large chunks of land. Those with 2 acres will never get out of poverty with sugarcane,” Museveni said. He advised smallholder farmers to adopt the four-acre model — incorporating food crops, coffee, livestock, and fish farming — for sustainable incomes.
He cited Serere farmer Joseph Ijara, who earns over UGX 1 billion a year from just 2.5 acres through poultry and zero-grazing dairy farming. “Ijara sells 310 eggs a day and 320 liters of milk daily,” the President noted.
President Museveni also advised against cotton farming for smallholders, citing low returns, and suggested it should be left to large-scale farms and institutions to support the textile sector.
To further support sugarcane growers, Museveni pledged a revolving fund to help farmers access fertilizers and improve productivity.
Budugo welcomed the announcement and thanked the President for halting the 5% deduction, promising fertilizer support, and defending the use of sugarcane tops as livestock feed.
The Third Deputy Prime Minister, Rukia Nakadama Isanga, thanked the President and affirmed Busoga’s support ahead of the 2026 elections.
“This time, the Basoga want to campaign for you themselves,” she said. “They don’t want outsiders coming in to speak for you without understanding our local issues.”
Hajji Idi Isabirye, Bunya South MP and Chairperson of the Busoga Parliamentary Caucus, also praised the President for addressing issues affecting the region, including cane pricing and swamp reclamation.
The meeting was attended by Members of Parliament, government officials, and leaders from sugar-growing regions across Uganda.
