Please note: you are viewing an old version of this deal. The current version can be found here: Deal #1967

Deal #1967 Version #87029

Uganda

Created at

2013-02-15

Last update

2022-06-01

Last full update

2022-04-01

Land area

Intended size

12 000 ha

Size under contract (leased or purchased area)

[current] 12000 ha

Size in operation (production)

[2022, current] 10975 ha

Comment on land area

The nucleus estate expansion includes the development of a 1,200 hectares plantation in Butamira, a man-made reserve. The shapefile derived indicates area in operation as 10975 ha.

Intention of investment

[current] Biomass for biofuels, Food crops, Renewable energy unspecified (12000 ha)

Nature of the deal

Outright purchase

Comment on nature of the deal

Land deal was allegedly taken to court due to allegations of fraud in leasing communal land to investors.

Negotiation status

[1985, current] 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

[1930] In operation (production)
[2022, current] In operation (production)

Contract farming

Yes

Not on leased / purchased (out-grower)

Yes

Not on leased area/farmers/households (out-grower)

[current] 25000 ha

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