Finance hails Kinyara Sugar for large production of refined sugar

The ministry of Finance has hailed Kinyara Sugar company for producing ample amounts of brown and refined (white sugar) required for the local and regional markets. 

This followed a tour of the factory in Masindi by Finance ministry officials led by Diana Nanono, head of the private sector development unit.

“We have visited the factory and learnt that you produce brown and light brown sugar and the white sugar used by beverage companies and confectionary industries, etc,” she emphasized.

The refinery commissioned by President Museveni in 2022 produces 75,000 metric tons of industrial white sugar annually. Industrial refined sugar is used to produce products like syrups, biscuits, sodas and alcohol.

Some manufacturers had complained of inadequate sugar in the local market and also questioned the increased prices of refined sugar.

However, Aldon Walukamba, the corporate communication manager of Kinyara Sugar, said, “We currently have over 5,000 metric tonnes of industrial refined sugar in stock. This high stock is despite our being able to supply all local users that have placed orders with us.”

“The same people claim that the cost of imported sugar is USD 860 per metric tonne compared to our price of USD 915 per metric tonne,” said Walukamba, “This amounts to a difference of 6.1% and can hardly be categorized as irregular.”

During the tour, Nanono said, “There has been a lot of discussion in the media on this aspect, but we have been able to see for ourselves.  We have seen the different tonnes of white sugar that have been piled in their stores, and we know that the government will make the right decision around this issue.”

She added, “We have come here to understand the business environment, challenges and how the government can make adequate policy interventions to resolve whatever issues they may be undergoing.”

Kinyara has since supported the government’s decision to put in place a policy measure imposing a 25 per cent duty on imported industrial refined sugar, a move protested by manufacturers of soft drinks and confectionaries.

“This will help protect the local production of industrial refined sugar. We finally have the correct policy framework in place that will allow us to access the local market and this policy will encourage more producers to also install industrial sugar refineries,” said Walukamba.

Walukamba noted that all finished products produced in Uganda benefit from minimum protection from imports of 25 per cent, while others have 35 per cent or even 60 per cent protection.

Nanono said the government launched the second National Strategy for Private Sector Development in December 2022, which largely coordinates all the private sector developments across the 20 NDPIII programmes where sugar, which is under the agroindustrialization programme, falls.

“As the ministry of Finance, we often engage with the private sector to understand the business environment challenges they are undergoing to be able to recommend adequate policy interventions by management,” said Nanono.

“We think that we will be able to engage management on this issue because it requires relevant regulation and proper enforcement. We think that this is something that the government needs to take up and address effectively to enable these companies to operate effectively,” said Nanono.

“We are going back to the office to report to management at the ministry of Finance and we hope that management can take the right measures and the right decisions to be able to improve the business environment generally in the sector.”