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Why Atiak Sugar Project is not firing on all cylinders.

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Photo Credit: Daily Monitor.

Ms Amina Hershi, the chief executive officer of Horyal Investment Ltd, displays some of  the bags of sugar produced at Atyak Sugar Factory in Amuru District recently.

Atiak Sugar Limited is battling an acute shortage of sugarcane to supply the multi-billion sugar factory located in Atiak Sub-county, Amuru District. The vast bulk of its sugarcane plantations in both Amuru and Lamwo districts were ravaged by suspected arson attacks from alleged aggrieved members of two separate outgrowers societies.

The Atiak Sugar Project is still being spoken of in the present tense. It is essentially a public-private-community partnership between the National Agriculture Advisory Services (Naads), participating farmer cooperatives and respective local governments of Amuru, Lamwo and Horyal Investment Holdings Ltd.

The first bags of sugar from Horyal Investment Ltd’s multi-billion investment in the post-conflict north hit the streets of Gulu City once President Museveni commissioned the factory on October 22, 2020. The factory was initially meant to provide a ready market for the sugarcane outgrowers in the region where sugar production has already begun.

Under the partnership, the community under Atiak Outgrowers and Gem-pachilo Cooperative Societies are to plant cane on the land and weed the plantations. Once the cane is ready, the plantation—apportioned to the outgrowers by Naads—would be harvested and sold to the factory.

At its inception, the project targeted to cover 13,841 acres at the main plantation at Atiak in Amuru District. An expansion of 15,000 acres was, however, later made in Ayu-alali, Palabek Kal Sub-county, Lamwo District, in 2020. A further expansion of 31,159 acres is planned and is being established in Palabek-ogili, Lamwo District, bringing the total acreage to 60,000.

In September 2020, before its commissioning, Ms Amina Hershi, the chief executive officer of Horyal Investment Ltd, told a delegation of government officials that 3,000 acres of sugarcane were ready for supply to the factory to begin its maiden production. This section of the plantation belonged to Gem Pachilo and Atiak Outgrowers Cooperative Societies, she revealed, adding, “…we also now produce 6 MWh of electricity to the national grid, which is generated through biogas from the bi-products of the cane.”

At this point, the plant was, according to Ms Hershi, only waiting for calibration by the International Organisation for Standardisation to ensure the quality, safety, and efficiency of products, services, and systems.

Two years later, however, Saturday Monitor has learnt that simultaneous incidents of fire outbreaks that ravaged hundreds of hectares of the plantation appear to cast a dark shadow on the potential of the factory.

Outgrowers and the factory’s management accounts have indicated that since 2017, wildfires have gutted hundreds of hectares of the sugar plantation in the dry season. The burnt portions were usually canes that were nearing harvest or ready for harvest. We also understand that the portions burnt by the fire were always those owned by the outgrowers. These were not insured against fire, damages, or any other risks.

Late last month, the proprietors of the factory said sugar production had been suspended after cane supply to the factory hit rock bottom. According to the company, the suspension comes in the aftermath of wildfires that have in previous months destroyed the sugarcane plantation.

Mr Mahmood Abdi Ahmed, the company’s director for plantation and agriculture, told Saturday Monitor that production had drastically slowed down. He, however, hastened to add that operations haven’t been suspended as a result of the acute shortage of canes.

“The biggest challenge we have had is the gaps in our structural planning relating to the sugarcane production, and this failure is blamed on all of us the stakeholders,” Mr Mahmood said in an interview, adding, “The land (customary) ownership setup in the Acholi area has served a really big disadvantage to sugarcane growing because you don’t see people growing sugarcane on subsistence basis as we see in other regions producing sugar.”

According to him, in areas such as Busoga and Bunyoro sub-regions, “you find people growing sugarcane everywhere because the land is not communally owned and individuals decide on their own whether to grow sugarcane. But the communal ownership disfavours this, and this is one challenge we did not foresee.”

He also said the lack of associated amenities such as roads and urban trading centres where interested labour (workers) can reside has exacerbated things.

“The road infrastructure in communities here is still poor to boost sugarcane production,” he said, adding, “Even if communities grew these canes, the road networks are still underdeveloped to ease transportation of the canes.”

 The company also lacks the infrastructure and human resources to deploy in sugarcane production. For example, Atiak Town Council or Elegu Town Council— the nearest trading centre—is 25km away from the factory, making transportation of the labour force over the distance a huge daily burden.

A fortnight ago, Ms Hersi told the media that the factory was temporarily suspending operations. According to her, the factory’s biggest problem was the lack of canes to supply the plant to produce sugar. She was, however, quick to add that the plantation would resume production once canes in Ayu-alali plantation in Palabek-kal Sub-county, Lamwo District, mature between July and August.

Sabotage galore

Ms Joyce Laker, the chairperson of Atiak Outgrowers Cooperative Society, however recently revealed that they were disappointed that Naads refused to pay their members.

During a public gathering at the factory, Ms Laker described the wildfires that swept across the plantations as deliberate sabotage. She also called for the government’s intervention after revealing that discontented cooperative members have openly threatened to continue burning down the sugar plantation until their grievances are settled.

“I will say it without shame…,” she stated. “…there are issues which the government has to come in and settle because at one point, in a meeting, some people said if these issues are not resolved, the sugarcane will continue getting burnt down.”

The longstanding dispute between the sugarcane outgrowers and the management of the sugar factory did not only delay the commencement of sugar production. Saturday Monitor also understands that the dispute has reportedly caused persistent and deliberate burning of the canes.

Ms Laker said the finger of blame can also be pointed elsewhere.

She referred specifically to the 2017 incident when Naads cut down more than 160 acres of sugarcane plantations belonging to Atiak Outgrowers and Gem-pachilo cooperative societies.

Saturday Monitor has established that the outgrowers are yet to be paid. We have also established that there are several instances of tension between the outgrowers, Horyal Investment Ltd and Naads over royalties and accumulated payments for canes cut and served to the factory.

Before President Museveni launched the factory in October 2020, the farm could not initialise sugar production for nearly eight months. This was due to the failure of the government to compensate two cooperatives for the sugarcane supplied to the factory.

Ms Grace Kwiyocwiny, the State Minister for Northern Uganda, told Saturday Monitor that roundtable talks between the leadership of the factory and the cooperative members are in the offing.

“We should protect all the little developments that are coming up in our region because all developments are supported by communities,” she said, adding, “I want to … come and meet with the leaders of the community because of the sugar [cane] that is continuously burning down.”

Earlier in March, when this newspaper visited the facility, the factory remained closed to production due to supply chain issues (shortage of cane). A perfect storm—including the pandemic, suspected arson attacks and insufficient production of canes by plantations in both Amuru and Lamwo districts—has contrived to create supply chain problems.

No respite from the east

In January 2021, Horyal Investment Ltd started sourcing its cane from the Busoga Sub-region. Sugarcane farmers in Busoga Sub-region, under the Greater Busoga Sugarcane Farmers’ Union (GBSGU), last month signed a memorandum of understanding with Atiak Sugar Factory to supply cane for six months. Under the arrangement, the government shall intervene by subsidising the transport costs and also avail fueled trucks to ferry the cane.

Inside sources have, however, told Saturday Monitor that the arrangement looks to have fallen flat on its face. The cost the investor incurred in transporting a truckload of canes is six times higher than what it paid for canes alone. A source who did not want to be named said while a truckload of canes fetched approximately Shs200,000, it costs between Shs800,000 to Shs1m to transport the consignment.

“They failed to sustain that arrangement because it was very expensive and the company realised it was sinking in losses to that effect; although the costs were being shared between the investor and Naads,” our source revealed.

Mr Michael Lakony, the Amuru District chairperson, fears that the suspension of the sugar production will destroy livelihoods in the sub-region.

“Hundreds of workers, including young men and women from the district here have been rendered jobless,” he told us in an interview, adding, “If the company wants to gain from the factory, it should get serious other than politicking.”

Mr Lakony added that because the government was allegedly not serious about streamlining the impasse and ensuring that Horyal Investments Ltd respects its terms in dealing with the outgrowers, the investor could continue grappling with suspicious fires.

“The plantations keep getting burnt because it is owned by no one and that means nobody cares, and if nobody cares, no one takes interest in taking care of it, including the neighbours because benefits in terms of payments to the out-growers are not being met,” he said.

Mechanisation drive

To address the challenge of labour deficiency and lack of funds to establish low-cost housing facilities in the factory to accommodate workers, Mr Mahmood said they are moving towards mechanising production.

“We don’t have the financing to build accommodation facilities to house thousands of workers who we would need to work on the plantation daily,” he told Saturday Monitor, adding, “Instead, we are strategising to focus on mechanising our production using the limited resources at our disposal now.”

He further revealed that they have procured a new fleet of sugarcane planters, weeders and harvesters due to arrive at the back-end of this year.

“The machines, we believe, are more efficient and can do much more work compared to human labour and that will solve the puzzle,” he noted.

Although Mr Mahmood did not disclose the source of the funding, in a separate interview, Mr Lakony—the Amuru LC5 chairperson—said the company had been granted a Shs108 billion bailout by the government for mechanising production.

“We had a meeting with the management as a district and also shareholders and the latest update is that the government has allocated Shs108 billion to the company through UDC [Uganda Development Corporation],” Mr Lakony said, adding, “The plan is to leave rudimental and turn to mechanised production. Instead of using human labour, they want to use machines.”

A fraction of the same funds will also be used to establish an irrigation system on River Unyama that cuts through the sugar plantation to help in irrigating the canes during the dry season when immature and young canes dry and die out, Mr Lakony added.

Saturday Monitor understands the Shs108 billion is the same funding thrown out by Parliament’s Budget Committee last November. This was after the investor made a supplementary budget request to finance production. The request tabled by junior Trade minister David Bahati, and backed by the UDC’s top brass, failed to convince the lawmakers, who in turn sent them away.

The MPs declined to endorse Ms Hersi’s request to the government, reasoning that there was a need for proof that her investment was making a substantial contribution to the economy. The MPs instead demanded a forensic audit into how she has spent more than Shs120 billion received from the government. Similar financial requests were made by the Atiak Sugar leadership to the 10th Parliament, but most of them were rejected, although it later emerged that they were, nevertheless, granted.

Some of the fire incidents at Atiak Sugar project

In 2016, a fire caused an estimated loss of Shs150m after it gutted 150 acres of sugarcane plantation at the factory.

In December 2018, another mysterious fire destroyed an estimated 250 acres of sugarcane at the facility.

An estimated 600 acres of sugarcane at the plantation was then burnt down in February 2019.

And in January 2021, a fire that lasted for nearly a week destroyed nearly 60 percent of the plantation after the police fire brigade fought it with little success.

Eventually, more than 600 acres of sugarcane estimated at Shs3 billion were reported to have been destroyed in the fire.

In fact, that fire in January of 2021 was the worst to ever hit the plantation. The police attributed the rapid spread of the fire to narrow fire lines that do not allow fire trucks to move in fast.

Enter January of 2022, a similar fire burnt down an estimated 3,500 acres of the sugarcane plantation.

According to Mr David Ongom Mudong, the Aswa River Region police spokesperson, the fire razed down 14 huts belonging to a Uganda People’s Defence Forces (UPDF) detachment. The soldiers, who were supposed to stand as sentinels at the plantation, watched helplessly as 250 acres were burnt down.

Background

About the factory

Atiak Sugar Factory, located at Gem Village in Pachilo Parish in Atiak Sub-county in Amuru District, is jointly owned by the Uganda and Horyal Investment Holdings Company Ltd. The latter belongs to Ms Hersi.

The factory—located 17kms north of Atiak off the Gulu-Nimule Road—is the first major investment in the region.

Lawmakers have, however, continued to question why the government’s stakes in it have remained significantly low compared to that of Horyal Investments despite the huge capital portfolio injected in the past years into the venture.

Last September, Parliament’s Committee on Trade questioned why the government—the lowest shareholder in Atiak Sugar Limited—continues to invest the most money in the factory.

The government’s shareholding in the plant has remained static at 40 percent despite an injection of more than Shs120 billion.

In May 2018, when the government injected Shs20 billion, its shareholding stood at 10 percent. In the same year, it injected another Shs45 billion—raising its shares to 32 percent.

The committee also questioned the circumstances under which Naads contracted the company to clear, plant, and harvest sugar cane valued at Shs54 billion instead of working directly with the outgrowers.

Source: Daily Monitor

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COP16 in Riyadh: World Leaders Commit $12.15B to Combat Land Degradation and Drought

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The 16th Conference of the Parties (COP16) to the United Nations Convention to Combat Desertification (UNCCD) has concluded in Riyadh, marking the largest and most inclusive conference in the organization’s history.

With over 20,000 participants, including global leaders, scientists, private sector representatives, and civil society groups, the conference laid out bold strategies to address land degradation, drought, and desertification.

The highlight of the conference was the announcement of the Riyadh Global Drought Resilience Partnership, which secured $12.15 billion in pledges to support drought-affected regions in 80 vulnerable countries, including Uganda.

This funding aims to strengthen food security, promote sustainable land management, and protect ecosystems from the growing impacts of climate change.

For Uganda, where over 40% of the population relies on agriculture, this commitment offers hope for combating the devastating effects of prolonged droughts in the cattle corridor and other semi-arid regions.

In a move to enhance global preparedness for droughts, COP16 launched an AI-powered Drought Observatory, a groundbreaking tool designed to provide real-time data and predictive analysis.

Uganda, with its ongoing challenges in monitoring and responding to climate impacts, stands to benefit immensely from this technology, which will enable the government to anticipate and respond effectively to severe drought conditions.

This could mitigate the recurring food insecurity and water scarcity issues faced by communities in Karamoja and other drought-prone areas.

H.E. Abdulrahman Abdulmohsen AlFadley, COP16 President, in his closing remarks, stated:

“This session marks a turning point in raising awareness and strengthening efforts to restore land and build resilience. The Riyadh Declaration sends a clear message: the time for decisive action is now.”

For Uganda, this turning point is critical as the country battles desertification in key ecosystems like the cattle corridor and Lake Kyoga basin, which threaten biodiversity, agriculture, and livelihoods.

With only 6% of land restoration funding currently coming from private sources, COP16 introduced the Business for Land initiative to increase private sector engagement in land restoration.

Over 400 companies participated in discussions on sustainable finance, environmental, social, and governance (ESG) practices, and strategies to mobilize private investment for land restoration projects.

Uganda, which has already seen successful private-sector participation in conservation projects such as carbon trading and reforestation in areas like Mabira Forest, could tap into this global momentum to attract more investments for land restoration initiatives.

To promote inclusivity, COP16 placed women and youth at the forefront of the fight against land degradation. Key outcomes included:

The launch of youth-led initiatives to drive grassroots climate action.

Adoption of gender-responsive policies to ensure equitable participation in land restoration efforts.

For Uganda, these measures are especially relevant.

The country has a youthful population and strong women-led grassroots organizations that are already leading efforts to promote climate resilience through tree planting and sustainable farming practices.

The resolutions adopted at COP16 provide a framework for scaling up these local efforts while ensuring inclusivity and equitable representation.

Scientific data presented at COP16 painted a dire picture of the planet’s land resources:

77.6% of Earth’s land is drier today than it was 30 years ago.

40.6% of the planet is now classified as drylands, threatening ecosystems, food security, and livelihoods.

For Uganda, this data underscores the urgent need for action.

With parts of the country already facing desertification and reduced rainfall patterns, the findings highlight the importance of restoring degraded lands like Nakasongola and tackling deforestation in critical areas such as Mount Elgon.

As COP16 wraps up, attention now shifts to COP17, which will take place in Mongolia.

Delegates will continue discussions on establishing a global drought regime, building on the momentum and progress achieved in Riyadh.

For Uganda, the outcomes of COP16 represent a pivotal moment.

The historic commitments, technological innovations, and inclusive policies offer the country an opportunity to address its growing environmental challenges.

If implemented effectively, these resolutions could help Uganda restore its degraded lands, safeguard livelihoods, and build resilience against future climate shocks, positioning the country as a leader in sustainable land management in Africa.

Source: nilepost.co.ug

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Church of Uganda’s call to end land grabbing is timely and re-enforces earlier calls to investigate quack investors and their agents fueling the problem.

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By Witness Radio team.

The Church of Uganda has called for the government to intervene immediately to address the escalating issue of land grabbing in Uganda.

The Archbishop of the Church of Uganda, Rt, made the urgent appeal. Rev. Steven Kazimba Mugalu, during an event in Wamala Village, Nansana Municipality, Wakiso District, on Saturday, December 7. He urged the government to take responsibility for protecting its citizens’ rights, particularly the right to own and occupy land, by strengthening laws and regulations governing land ownership and use.

The Archbishop noted that local communities are being forcibly removed from their land without receiving compensation or alternative sources of income. In many cases, Ugandan communities face eviction or compulsory land acquisition under the guise of developmental projects, leaving many marginalized.

Bwowe Ismael’s case is an example. He is a father of 20 and a person with a disability (PWD) living in Bethlehem in the Kyotera district. In an interview with Witness Radio, he revealed that his land was forcefully taken when he demanded fair compensation for it, which is affected by the East African crude oil pipeline project (EACOP). He shared that the State authorities intimidated, arrested, and charged him with false offenses, such as aggravated robbery, accusing him of sabotaging the government project.

“This is a loss for the entire nation, not just the impacted individuals and families,” the Archbishop said. He added,” We implore the government to set up an open and transparent procedure for acquiring land and to guarantee that all people and communities impacted by land grabbing receive just compensation.”

The Church of Uganda’s call for government intervention on land grabbing comes less than a month after Witness Radio released a shocking report on land evictions in Uganda. The report revealed that nearly four land evictions are reported weekly, affecting approximately 15,126 people and threatening 5,060.12 hectares of land nationwide. It further estimated that 2,160 Ugandans face evictions daily to make way for investments, with 723 hectares of land at risk of being seized daily.

The Witness Radio report “Forced Land Evictions in Uganda” covered 90 land eviction cases over six months from January to June 2024, affecting at least 363,021 Ugandans and putting over 121,000 hectares of land at risk of land grabs.

Evictions have not only disrupted people’s lives but have also contributed to increased food insecurity in Uganda, violence, and, in many cases, death and the criminalization of those who resist or face eviction. According to the report, corporate entities such as Agilis Partners Ltd, Great Seasons Ltd, East African Crude Oil Pipeline (EACOP), New Forest Company (NFC), and Formosa Ltd, along with the impunity of government officials, wealthy individuals, multinational corporations, and influential figures, including Army Generals, are the leading perpetrators.

The report further highlighted that local and foreign investors were involved in 67 cases, government agencies in 12, and tribal and family land conflicts in 11 cases.

Poor people are often the primary targets and most affected by land grabbing as those behind these evictions hold significant power. During the same period, Witness Radio documented 65 attacks on land and environmental defenders (LEDs) and climate activists who were challenging illegal land evictions and corporate environmental harm in Uganda.  Most (37) evictions were enforced by armed gangs on behalf of evictors, with 25 cases by Uganda police. In contrast, 5 cases involved the participation of some soldiers of the Uganda Army, whereas 4 cases involved private security companies.

Kazimba’s call for government intervention echoes Witness Radio’s report, which also emphasized the urgent need for government action to address the land-grabbing crisis, respect human rights, uphold the rule of law, ensure compliance with directives on land evictions issued by relevant authorities, and closely monitor their implementation.

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Three-quarters of Earth’s land became permanently drier in last three decades: UN

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