Deal #1967

Location #1

Spatial accuracy level
Administrative region
Location
Kakira, Uganda

Target country
Uganda
Comment on location
Amuru

Land area

Intended size (in ha)
12000
Size under contract (leased or purchased area, in ha)
12000
Size in operation (production, in ha)
10000
Comment on land area
The nucleus estate expansion includes the development of a 1,200 hectares plantation in Butamira, a man-made reserve.

Intention of investment

Intention of investment
Biofuels, Food crops, Renewable Energy

Nature of the deal

Nature of the deal
Outright Purchase

Negotiation status

Negotiation status
[1985] Concluded (Contract signed)
Comment on negotiation status
The first 323 hectares were obtained in 1918. This Company was formed in 1985 as a Joint Venture between the Madhvani Group and the Government of Uganda to take over the assets of Madhvani Sugar Works Ltd., which was the Group's flagship prior to 1972. At the time of take-over in 1985, owing to the economic turmoil in the intervening years as well as inadequate management whilst under Government control, the factory was no longer in production and most of the nucleus estate had reverted to bush.

Implementation status

Implementation status
[1930] In operation (production)

Contract farming

Contract farming
Yes
Not on leased / purchased area (out-grower)
Yes
Not on leased / purchased area (out-grower, in ha)
25000
Not on leased / purchased farmers (out-grower)
8600
Comment on contract farming
The outgrowers supply 65% of the total sugarcane to the factory, 1.4 million tonnes of sugarcane is supplied to the factory from outgrowers. The company provides seedcane and agrochemicals as well as advice to the outgrowers

Number of total jobs created

Jobs created (total)
Yes
Current number of employees (total)
7500
Current number of daily/seasonal workers (total)
2000
Comment on jobs created (total)
Plus 4500 contract workers

Number of domestic jobs created

Jobs created (domestic)
Yes
Current number of employees (domestic)
7500
Current number of daily/seasonal workers (domestic)
2000
Comment on jobs created (domestic)
Plus 4500 contract workers

Operating company

Operating company

 

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Data source #1

Data source type
Research Paper / Policy Report
File

Data source #2

Data source type
Company sources
File

Data source #3

Data source type
Media report
File
Date
2001-08-14
Comment on data source
The Monitor Newspaper: Industry and Environment clash once again in Busoga

Data source #4

Data source type
Media report
File
Date
2014-03-27
Comment on data source
pg 22 and 23, New vision

How did the community react?

Community reaction
Rejection
Comment on community reaction
The local community objects to the clearing of man-made forest.

Promised benefits for local communities

Promised benefits for local communities
Health
Education
Other
Comment on promised benefits for local communities
The sugar plantation houses schools (eight primary schools, four nursery schools and one secondary school), a hospital, airfield, recreational facilities. The company also supports eight orphanages.

Detailed crop, animal and mineral information

Crops area
Sugar Cane

Use of produce

Has domestic use
Yes

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Sugar production, electricity (the company produces 52 megawatts) and bio-ethanol production- 2 million tonnes of sugarcane are supplied to the factory from the company estate and outgrowers, East Africa's leading sugar producer

Water extraction envisaged

Water extraction envisaged
Yes

Overall comment

Overall comment
Import of error check - Coordinator's overview comment: 0 Import of other remarks regarding the investment: Civil war of last 20 years has already displaced large numbers.land deal was taken to court due to allegations of fraud in leasing communal land to investors

Oct. 6, 2014, 1:16 p.m.

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Nov. 8, 2013, 9:14 a.m.

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May 9, 2013, 10:46 a.m.

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April 10, 2013, 10:48 a.m.

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Feb. 26, 2013, 8:48 p.m.

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Feb. 24, 2013, 8:41 p.m.

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Feb. 15, 2013, 5:03 p.m.

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