Revival of Lira Spinning Mills Essential for Lango's Economic Growth

The dormant Lira Spinning Mills, once a cornerstone of the Lango sub-region’s economy, has been highlighted as a crucial asset for stimulating growth and development. According to Oyam County North Member of Parliament, Hon. Eunice Otuko, the mill’s inactivity for the past four decades has led to a significant decline in productive employment opportunities and denied local cotton farmers access to a stable, high-value domestic market.

Speaking before the Committee on Tourism, Trade and Industry, Hon. Otuko explained that the mill was originally established to process Ugandan-grown cotton. However, its closure has resulted in cotton farmers across Northern and Eastern Uganda selling their produce with minimal or no value addition.

Revitalizing the Lira Spinning Mills is seen as an economic imperative, capable of absorbing an estimated 7,000 unemployed youth and women in Lira City and surrounding districts. This revival would directly support the ‘Buy Uganda, Build Uganda’ (BUBU) initiative by providing the necessary domestic production capacity to enforce recent restrictions on second-hand clothing imports.

An engagement with the Uganda Investment Authority revealed that an estimated US$58 million is required to establish a modern, fully integrated spinning mill. This funding could be secured through government recapitalization or a public-private partnership, with the Uganda Development Corporation potentially facilitating the financing in compliance with public finance laws.

Committee members acknowledged the proposal’s potential to accelerate economic participation for many Ugandans. Other members noted the broader benefits, with Hon. Abraham Isamat suggesting that improved cotton processing could stimulate growth in regions like Teso, while Hon. Asha Mafabi proposed complementing the mill’s development with enhanced food production for local benefit.

Source: https://www.parliament.go.ug/news/4601/revival-lira-spinning-mills-key-economic-growth-region