Uganda's Sugar Journey: From Scarcity to Regional Supplier

A stark contrast exists between Uganda’s past sugar scarcity and its present status as a regional supplier. In 1988, a memory etched in the minds of elders like Mr. Muhmad Ofwono, Ugandans were reportedly caned for begging former Kenyan President Daniel Arap Moi for sugar, a commodity that was both scarce and prohibitively expensive locally, costing Shs2,000 per kilogramme in major towns.

This shortage was largely attributed to the collapse of major sugar factories, such as Kakira, Lugazi, and Kinyara, following the expulsion of Asians in 1972. The resulting deficit in basic commodities forced many Ugandans into smuggling, a practice known as “magendo.” However, the economic landscape has dramatically shifted.

Today, Uganda produces over 800,000 metric tonnes of sugar annually, a significant increase attributed to the expansion of established producers like Kakira Sugar Works, Sugar Corporation of Uganda Ltd (Scoul), and Kinyara Sugar Works, alongside new factories across several districts. This expansion has not only met domestic demand but created a substantial surplus for export.

Kenya, once a source of relief for Ugandan sugar consumers, now faces its own production challenges, with major sugar companies struggling. This has created an opportunity for Uganda, which now supplies a significant amount of sugar to the Kenyan market. Traders at the Busia border report daily truckloads of sugar heading into Kenya, where prices remain higher than in Uganda.

While recent changes in Kenya’s Finance Act have impacted formal exports, Uganda continues to seek markets in Rwanda, the Democratic Republic of Congo, and South Sudan. Observers view this turnaround as a testament to Uganda’s economic recovery, driven by political stability and increased investment in the manufacturing sector.

Source: Daily Monitor (Uganda)