PM Nabbanja Orders Immediate Licensing of CN Sugar Factory in Namayingo

Prime Minister Robinah Nabbanja has intervened to expedite the licensing of CN Sugar Company, instructing the Ministry of Trade and Industry to issue a production license immediately. This action aims to resolve a three-year impasse that has prevented the sugar processing factory in Namayingo District from commencing operations.

The directive came after President Yoweri Museveni tasked the Prime Minister to ensure the company’s launch. The issue was discussed in a meeting attended by Ministers of State for Trade and Industry, Sanjay Tanna and David Bahati, respectively.

CN Sugar was authorized by the government in 2022 to establish the factory and has since invested in machinery and secured land for its nucleus estate. However, the company’s proprietors stated they have been awaiting the production license, facing significant delays and financial losses. A representative for CN Sugar noted, “We have invested heavily and we have our own nucleus estate. We have been waiting for a licence for three years, which has delayed our operations and caused us losses.”

The local leadership in Namayingo District welcomed the Prime Minister’s intervention, emphasizing the potential for job creation and a stable market for local sugarcane farmers. The District Chairperson expressed, “Our people need jobs and our farmers need market. We thank the Prime Minister for intervening.”

Minister Tanna explained the delay stemmed from the ministry’s enforcement of a policy requiring sugar millers to possess their own nucleus estate, aiming to prevent the poaching of sugarcane from other factories. Minister Bahati assured compliance with the Prime Minister’s directive, while also committing to ensure adherence to regulations and prevent conflicts over sugarcane sourcing in the Busoga sub-region.

PM Nabbanja stressed that the investor had met the prerequisite of establishing their own plantation and had waited sufficiently long. She reiterated the directive for immediate licensing to facilitate production and employment. However, representatives from Bugiri Sugar Company also present voiced concerns, requesting strict conditions on CN Sugar’s license to prevent them from acquiring sugarcane from Bugiri’s registered out-growers.

In response, Prime Minister Nabbanja stated that the Ministry of Trade would establish clear guidelines to manage sugarcane sharing among millers and mitigate potential disputes within the region.

Source: Nile Post