economy 3 September 2026 Parliament of Uganda
Lira Spinning Mills Revival Critical for Lango's Economic Growth, Says MP Otuko
The dormant Lira Spinning Mills has been identified as a crucial asset for Lango's economic resurgence, with Member of Parliament Hon. Eunice Otuko advocating for its revival to boost agro-industrialization, create jobs, and add value to cotton. The mill's inactivity for 40 years has hampered cotton farmers and deprived the region of economic opportunities. Source: https://www.parliament.go.ug/index.php/news/4601/revival-lira-spinning-mills-key-economic-growth-region
Member of Parliament for Oyam County North, Hon. Eunice Otuko, has emphasized the pivotal role the Lira Spinning Mills could play in revitalizing the Lango sub-region’s economy. Speaking before the Committee on Tourism, Trade and Industry, Otuko highlighted that the mill’s revival is essential for promoting agro-industrialization, generating employment, and enabling value addition to cotton.
For the past four decades, the Lira Spinning Mills has remained inactive, a situation Otuko described as detrimental to productive employment and the cotton farming sector. She noted that cotton farmers in Northern and Eastern Uganda currently sell their produce with minimal value addition, missing out on significant economic benefits.
The revival of the mill is seen as a vital step towards absorbing an estimated 7,000 unemployed youth and women in Lira City and surrounding districts. Furthermore, it aligns with the Buy Uganda, Build Uganda (BUBU) framework by bolstering domestic production capacity. This could support the recently enacted External Trade (Amendment) Act, 2026, which imposes a 30 percent environmental levy on imported second-hand clothing.
According to discussions with the Uganda Investment Authority, an estimated US$58 million is required to establish a modern, integrated spinning mill. Otuko proposed that this funding could be secured through government recapitalization or a public-private partnership, potentially managed by the Uganda Development Corporation.
Committee members expressed support for the proposal, recognizing its potential to accelerate economic participation. Hon. Abraham Isamat pointed out the stalled progress in the Teso sub-region’s cotton sector due to a lack of value-addition facilities. Other representatives, like Hon. Asha Mafabi, suggested complementing the mill’s development with agricultural initiatives to ensure broader community benefits.
The committee is now considering Otuko’s proposal, which was initially tabled in the House in July 2026.
Source: Parliament of Uganda