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Deal #4166

Location #1

Spatial accuracy level
Administrative region
Location
Kololo, Uganda

Target country
Uganda
Comment on location
Within the region of the Lakang and Kololo Village, Amuru district.

Location #2

Spatial accuracy level
Administrative region
Location
Lakang Community Primary School, Uganda

Target country
Uganda

Land area

Intended size (in ha)
40000
Size under contract (leased or purchased area, in ha)
[2008] 10000

Intention of investment

Intention of the investment
Biofuels, Industry

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
[2008] Concluded (Contract signed)
Comment on negotiation status
10000 ha were awarded for 49 years in 2008. Amuru district chairperson has apologized to the community for giving the land (10 000 hectares) to the company as the district was under the impression that it was public land. "Government is seeking to give at least 40,000 hectares of Land from Amuru district" to the company, "but since 2009, the Amuru Sugar Works project has dragged on with leaders demanding that the government enter into negotiation with the land owners". Government has been asked in 2014 to consult with landowners rather than the community members just surrendering their land to the company. Negotiations for the additional 30 000 hectares are on-going.

Implementation status

Implementation status
[2013] Project not started
Comment on implementation status
The project stalled at inception. Investment estimated at USD 100 million. Resistance was successful in delaying the project but state and capital have recently regrouped and are trying to revive the project through a new strategy.

Contract farming

Contract farming
Yes
On leased / purchased area
Yes
On leased / purchased area (in ha)
20000
Comment on contract farming
One report states that around 7000-10000 outgrower farmers would be incorporated into the project. The outgrowers would be housed in labour camps with 10 ha each: 8 ha under sugarcane and 2 ha for food crops. Outgrowers would eventually pay unspecified rents on the 10 ha and housing costs.

Contract #1

Contract date
2008-11-12
Duration of the agreement (in years)
49

Number of domestic jobs created

Jobs created (domestic)
Yes
Planned number of jobs (domestic)
7000
Comment on jobs created (domestic)
The plan was to employ around 7000-8000 people.

Operating company

Operating company
Comment on investment chain
Madhvani Group would supply equipment to clear, plough and furrow the land as well as distribute treated cane seeds and give technical advice on agricultural matters.

 

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Data source #1

Data source type
Media report
File
Date
2012-02-09
Comment on data source
All Africa- Uganda- Amuru Sugar Project will bring development to North

Data source #2

Data source type
Media report
File
Date
2012-02-12
Comment on data source
The Observer- Editorial: Amuru Sugar needs support

Data source #3

Data source type
Media report
File
Date
2012-05-06
Comment on data source
The Independent. "Museveni’s double standards?"

Data source #4

Data source type
Media report
File
Date
2012-05-21
Comment on data source
Acholi Times- The proposed Amuru Sugar Works; how a win-win situation can be achieved.

Data source #5

Data source type
Media report
File
Date
2013-05-10
Comment on data source
The Independent: Madhvani in Amuru will bring development to Acholi- prof Ogenga Latigo

Data source #6

Data source type
Media report
File
Date
2013-05-28
Comment on data source
Daily Monitor: "Amuru Youth Want to Meet Bigombe over Madhvani sugar project"

Data source #7

Data source type
Media report
File
Date
2014-07-20
Comment on data source
Sunday Monitor- Government free to develop any area say MP, pg 28

Data source #8

Data source type
Media report
File
Date
2014-05-26
Comment on data source
New Vision- Migereko assures Amuru on sugar project land, pg 38 of pdf, received from Martin

Data source #9

Data source type
Research Paper / Policy Report
File
Date
2015-04-28
Comment on data source
Giuliano Martiniello. Social struggles in Uganda's Acholiland: understanding responses and resistance to Amuru sugar works. The Journal of Peasant Studies, 42:3-4, 653-669

Data source #10

Data source type
Media report
File
Date
2015-08-20
Comment on data source
Farmland Grab- Agribusiness on rise in north Uganda region where rebels fought

Consultation of local community

Community consultation
Limited consultation
Comment on consultation of local community
consultation only in the beginning of the negotiations, President Museveni has also tried to convince the residents to give the land up for the project in 2012. The community is urged to form a committee to discuss this project with the government and Madhvani Group. The residents have been assured that the land will not be grabbed without community involvement. It appears that consultation with the community is increasing. The state was involved in violence and bribery in an effort to evict local inhabitants and secure land for the company. In January 2015, clan leaders and MPs were seen in Rakitura (President Museveni’s countryside residence) for the signing of an agreement to avail 10,000 ha of land to the investor in return for compensation to all affected members. Locals say investors should hold direct talks with landowners and farmers, instead of the government intervening.

How did the community react?

Community reaction
Rejection
Comment on community reaction
The community have responded to the project in several ways. Women from the Amuru District stripped naked in a protest against this project. Communities also attacked the Amuru Sugar Works caravan of surveyors and technicians. The President travelled twice to Amuru in the aftermath of the protest and in May 2012 in order to convince the people about the portrayed benefits of the project.

Displacement of people

Number of people actually displaced
20000
Comment on displacement of people
All family farmers, around the village of Lakang. The state was involved in violence and bribery in an effort to evict local inhabitants and secure land for the company.

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
promised: jobs, schools, hospitals, roads, but so far "no clear compensation roadmap" (see comment: "Museveni’s double standards?"). As a result of this project Amuru residents wanted to invade game reserves in the district for grazing and harvesting, some residents have already been evicted from the game park. Resistance was successful in delaying the project but state and capital have recently regrouped and are trying to revive the project through a new strategy. In January 2015, clan leaders and MPs were seen in Rakitura (President Museveni’s countryside residence) for the signing of an agreement to avail 10,000 ha of land to the investor in return for compensation to all affected members.

Promised benefits for local communities

Promised benefits for local communities
Health
Education
Roads
Other
Comment on promised benefits for local communities
Electricity

Former land owner (not by constitution)

Former land owner
Community
Comment on former land owner
The land was customarily owned by the people of Lamogi. Amuru leaders sought redress by taking the Amuru DLB to the Gulu High Court. They claimed that the land had been unlawfully allocated to Madhvani as it did not belong to the state. The first judgement in the High Court of Gulu in April 2008 declared the land to be customarily owned as hunting and growing grounds. In the second round of judgment at the High Court of Gulu in February 2012, Judge Musane, ruled that the land was not held under customary tenure.

Former land use

Former land use
Smallholder agriculture

Former land cover

Former land cover
Marginal land

Detailed crop, animal and mineral information

Crops area
Sugar Cane

In country processing of produce

In country processing of produce
Yes

Overall comment

Overall comment
Resistance from the local community was successful in delaying the project but state and capital have recently regrouped and are trying to revive the project through a new strategy. In January 2015, clan leaders and MPs were seen in Rakitura (President Museveni’s countryside residence) for the signing of an agreement to avail 10,000 ha of land to the investor in return for compensation to all affected community members.

Sept. 19, 2017, 4:55 p.m.

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Aug. 24, 2015, 2:31 p.m.

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Aug. 17, 2015, 4:10 p.m.

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Oct. 8, 2014, 10:47 a.m.

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Nov. 1, 2013, 6:31 p.m.

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