Deal #4166

Uganda
Created at
2013-11-01
Last update
2024-04-17
Last full update
2024-04-17

Land area

Intended size
40 000 ha
Size under contract (leased or purchased area)
  • [2008, current] 10000 ha
Comment on land area
This land, spanning 10,000 hectares, encompasses several villages including Kololo, Omee, Pailyec, Lwak Obito, Lujoro, and Bana within Lakang sub-county, Amuru district.Sometime before 2010, the Madhvani Group applied to lease 40,000 acres (63 sq mi) in Amuru District to establish a commercial sugar plantation and a factory.It was planned that the sugar estate would sit on 40,000 hectares. 20,000 hectares would be a nucleus estate for the factory and the remaining acreage would be leased out to sugarcane outgrowers

Intention of investment

Intention of investment
  • [2008, current] Food crops (10000 ha)
Comment on intention of investment
Production of sugarcane

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
  • [2008, current] 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
  • [2017] Project not started
  • [2017] Startup phase (no production)
  • [2020, current] Startup phase (no production)
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. In 2017, the government acquired the land through a survey and provided compensation to the original landowners. This was intended to facilitate the establishment of a sugarcane plantation and a sugar factory by Madhvani Sugar Factory. However, no developmental activities have taken place on the land since then, rendering it unused and susceptible to occupation

Contract farming

Contract farming
Yes
On leased / purchased
Yes
On leased area/farmers/households
  • [current] 20000 ha 10000
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.