UGANDA – Modern Group of Companies, a diversified organization in Uganda, has broken ground for the construction of Kidera Sugar Limited in Buyende district, Eastern Uganda.
set to cost over US$30m, the new factory will be put under production of refined sugar, targeting both the local and international marketS.
Refined sugar is majorly used in production of soft drinks, baked goods, confectionaries, pharmaceuticals, among other uses, with Uganda’s current demand ranging from 78,000 metric tons to 90,000 metric tons annually against local production of less than 60,000 metric tonnes.
Establishment of the factory will enable the manufacturers to obtain the industrial sugar cheaply and timely, as it will cut on the long delivery time witnessed with imports.
It will also enable the country to save close to US$50 million annually spent on importing the commodity from other countries.
In addition, the refined sugar will have a ready market throughout East Africa whose demand for industrial sugar is 150,000 metric tons.
Once finalized by early 2024, the factory is set to create 13,000 jobs and avail direct market for sugarcane farmers in the area.
Director general of Uganda Investment Authority (UIA), Robert Mukiza said, “I am happy to announce that this is one of the largest investments we have licensed in the past few years.
“With this establishment coming in place, the local communities will benefit immensely as far as employment opportunities are concerned. This is not something small and we will give you full support to ensure that this is actualized.”
In line with the government’s Buy Uganda, Build Uganda agenda, the country has been registering increased investment in the food industry especially in the sugar sector.
Earlier in May, Sarrai Group, a conglomerate of diverse and inter-related agro-manufacturing companies across East and Southern Africa, inaugurated its new sugar refinery factory in Kiryandongo district, Western Uganda.
The new Kiryandongo Crest Sugar factory, seats on 13,000 acres of land with a processing sugar capacity of 4000 tonnes per day.
The plant, constructed at a cost of US$15m, has a production capacity of 60,000 metric tons of industrial white sugar annually, consuming about 70,000 metric tons of mill brown sugar as raw material.
With this factory, KSL has strengthened its presence in the Ugandan sugar market, where it is the second largest player with 30% of sales behind Kakira Sugar Works.
The new refinery is an addition to the miller’s sugar factory, with a capacity of 120,000MT per annum, served by an expanded cane area of 39,000 hectares from both nucleus and out-growers.