President Yoweri Kaguta Museveni has announced that the government will purchase the Mayuge Sugar Factory for Busoga sugarcane farmers.
The President made the announcement on Wednesday August 6, 2025, while meeting sugarcane growers, millers, and sugar manufacturers from across Uganda at Kityerera State Lodge, Mayuge.
The move is in fulfilment of the government’s pledge to build a sugarcane processing plant for Busoga sugarcane farmers.
During the meeting, the farmers gave the government a green light to go into purchase negotiations with the sugar factory.
The new ownership model is expected to restore fairness in the sugar industry and ensure that profits return directly to the farmers.
“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 resounding “Yes!” from the farmers.
“Okay, we shall negotiate with them and buy it for you,” the President assured.
The meeting brought together key stakeholders from Uganda’s major sugarcane growing regions — Busoga, Buganda, Western, and Northern Uganda — and is part of President Museveni’s wider agenda to reform the agro-industrial sector and uplift communities from poverty.
In the same meeting, President Museveni revealed that the cabinet will decide the fate of CN Sugar Ltd and Shakti Sugar limited which were closed due operational issues. He said the issue should be handled next week on Monday.
On the other hand, President Museveni directed the Minister for Trade, Industry and Cooperatives, Hon. Francis Mwebesa, to ensure the long-awaited Sugar Council is established in accordance with the Sugarcane (Amendment) Act, 2023, passed by Parliament in April, 2025. He ordered that the names of the council members should be confirmed by next week.
The council is expected to regulate the industry and represent the interests of growers and millers alike.
The council will consist of a chairperson, four representatives of sugarcane out-growers, four from sugar millers, and Permanent Secretaries from the Ministries of Agriculture, Finance, and Trade.
During the same meeting, Mr. Budugo Isa, Chairperson of the Uganda National Association of Sugarcane Growers, expressed concern over the continued deduction of a 5% levy from farmers delivering sugarcane to factories, a cost management charge that was supposed to be scrapped under the new law.
“We had hope in this council, but the Ministry of Trade is taking too long to implement it,” Mr. Budugo lamented.
President Museveni responded firmly, directing that the charge should stop and urged the sugar manufacturers to reject sugarcane deliveries that are mixed with husks and tops, which degrade processing efficiency.
“Can we now agree? Reject the unclean sugarcane,” President Museveni said. “And the 5% charge must stop.”
