Politics 14 May 2026 Daily Monitor (Uganda)
Shs700 Billion Invested, Yet Atiak Sugar Factory Remains Non-Operational
Economists and legislators are questioning the continued government funding of the Atiak Sugar Factory, which has reportedly received over Shs700 billion without producing any sugar. Critics label the project a "bottomless pit" and urge the government to abandon it and redirect funds to more productive ventures. Source: https://www.monitor.co.ug/uganda/news/national/atiak-sugar-another-bottomless-pit-or-shs700b-in-no-sugar-5460006
The Atiak Sugar project, a significant public-private initiative championed by President Museveni for the economic development of the Acholi sub-region, is facing intense scrutiny from both economists and Members of Parliament. Critics have labeled the venture a “bottomless pit” due to the substantial taxpayer funds invested, exceeding Shs710 billion, with no tangible sugar production to show for it.
Economic experts are warning the government against further investment, citing the project’s apparent inability to yield results. Julius Mukunda, the executive director of the Civil Society Budget Advocacy Group (CSBAG), believes the project was flawed from its inception and reiterates that public funds will continue to be wasted unless the government acknowledges this. He advocates for abandoning the project and reallocating the funds to functioning initiatives.
This criticism comes in the wake of Parliament approving an additional Shs37.9 billion for the factory as part of a controversial supplementary budget. Leader of Opposition Joel Ssenyonyi expressed concerns that Parliament might become a “conduit to approve funds that facilitate idle projects.” He highlighted his visit to the factory, noting its non-operational status despite consistent annual appropriations.
While the government, through the State Minister for Industries David Bahati, defends Atiak Sugar as a viable investment and promises sugar production to commence in September 2026, Ssenyonyi remains skeptical. He questions the government’s stake in the private entity and the repeated unfulfilled promises regarding production timelines.
Atiak Sugar Factory, owned by Horyal Investments Holding Company Limited, was established in 2013 but later ran into financial difficulties, leading to a government bailout. Despite the over Shs700 billion investment, questions persist regarding the government’s 40% ownership compared to the proprietor’s 60% stake, particularly given the vast difference in capital injection.
Plans are underway by some returning lawmakers to push for a select committee to investigate the Atiak Sugar deals and the circumstances surrounding the allocation of billions of shillings. The opposition also calls for improved oversight and accountability in managing public funds within such entities, including clarifying the government’s equity status and ensuring transparent operations.