Challenges of the Sugar Industry

Access to Regional Markets

Uganda is now one of the biggest sugar prodcucers in Africa. It also has the biggest Bagasse-Cogeneration plant of 51 MW and one of the biggest distilleries with an annual capacity of over 20M Ltrs (both at Kakira Sugar Limited). There are currently 11 companies in production, with three coming on this year and another five in the next three years. Uganda is now a sugar surplus producing country and is capable of supplying sugar to its neighbours especially those in E. African Community and Africa at large. With the above surplus, we still have challeges especially with Kenya & TZ that still subjects our sugar to tariffs and non tariff barriers making it impossible for us to export our sugar despite being in the same EA common market. Rwanda and TZ also continues to import free of tax sugar from outside East African Community instead of buying our locally manufactured sugar. Continued wars and lack of infrastructure in Southern Sudan and Eastern DRC interrupt our sugar exports to those regions.

Sugar Act and Regulatory body

The long awaited sugar bill was innated in April 2020, but has not been operationalized. This will create a sugar regulatory board that will regulae the sugar industry.

Biofuel Policy

There is no National Bio-fuel Policy in place and this has hindered investment in ethanol production.

Tarrif and Non-Tarrif Barriers

An explanation on this to be obtained from USMA secretariate.

Others to be mentioned

USMA Secretariate to mention more challenges.