Uganda’s President Yoweri Kaguta Museveni has signed into law the Sugarcane (Amendment) Bill, 2023, calling on stakeholders in the sugar industry to work together to avoid collapse.
“If you don’t want to kill this industry, you should all cooperate,” Mr Museveni said. “Because if you don’t, the sugar factories will collapse — and once they do, even new farmers will have nowhere to sell.”
The president made the remarks during a signing ceremony attended by top government officials, Members of Parliament from sugar-growing regions, and representatives of sugarcane growers’ associations.
Key Changes in the Law
The amendment — passed by Parliament last month following extensive consultations — revises the governance of Uganda’s sugar sector, particularly in regions such as Buganda, Busoga, Bunyoro, and Acholi.
A new Sugar Industry Stakeholders Council will now oversee regulation, composed of a majority of farmer representatives, millers, and officials from key ministries including Trade, Agriculture, and Finance.
The chairperson of the council will rotate between representatives of farmers and millers every two years — a move designed to promote balance and prevent dominance by any one group.
“The rationale is to give farmers a stronger voice and ensure the council reflects all interests,” explained Trade Minister Francis Mwebesa, who briefed the president on the reforms.
A Sugar Development Fund will also be established to finance the council’s operations. The fund will be financed through contributions from sugar millers and outgrowers, in a 70:30 ratio.
Sharing the Profits
In a key breakthrough, millers will now be required to share revenue from sugar by-products — including ethanol and electricity — with farmers.
President Museveni welcomed this, saying it recognises the full value of sugarcane. “Processors get more from cane than just sugar,” he said. “This formula is fair. I can now sign the law.”
A Caution on Land Use
The president also warned against encouraging smallholders with under four acres of land to grow sugarcane. He advised instead they follow Uganda’s 4-acre model for mixed farming — recommending crops like coffee, fruits, food crops, and rearing animals such as poultry and pigs.
Political Consensus
Deputy Speaker Thomas Tayebwa praised the president for insisting on consensus before Parliament passed the law.
“When we had contention in Parliament, I called you, and you advised that we do not proceed until there was agreement,” he said.
The signing ceremony was witnessed by senior government leaders including Third Deputy Prime Minister Rukia Nakadama, Minister for the Presidency Babirye Milly Babalanda, State Minister for Industry David Bahati, and MPs and farmer leaders from sugar-growing areas.
