Atiak Sugar Factory

UDC in partnership with the private sector (Horyal Investment Holding Company Ltd (HIHC) has invested in setting up 1,650 Tons of cane crushed per day (TCD) sugar processing plant in Atiak , Amuru district. This is a shareholder loan and an equity financing investment. The capacity will be scaled up to 3,500TCD in phases 2 and 5,000 TCD in phase 3. The proposed plant will also produce by –products such as molasses and bagasse to produce ethanol and up to 6MW of electricity in phase 1. UDC holds 32% shareholding in HIHC and this first large investment by Government in northern Uganda post-conflict. Approximately 15,000 out growers are integrated into the investment and are expected to supply cane to the factory, this serves as an engine for development to support the livelihoods of vulnerable populations especially women in Northern Uganda. The proceeds from the supply of cane can be reinvested into cane growing and other commercial activities within the region.

The Factory was commissioned on the 22nd October 2020 by H.E Yoweri Kaguta Museveni, President of the Republic of Uganda.

 Socio-economic benefits

  1. Employment of at least 3,500 workers directly and 15,000 indirectly on the out-grower farms of whom over 4,700 members are women and heads of families.
  2. Uptake of local raw materials, the volume of sugarcane purchased by the factory has significantly increased from 6,647 tons in 2020 to 146,919 tons in 2021.
  3. Revenue generation, since commencement of commercial operations, the factory has produced and sold 11,902 tons of brown sugar. More than half (56.2%) of the sugar is sold within the country and the balance exported. As a bi-product, the company has produced and sold 8.577 tons of molasses. In total, the factory has so far generated UGX 23,283,666,000; about 94.5% of this income is from the sale of sugar, the main factory product.
  4. Transformation from subsistence to commercial farming through the out-grower scheme, hence a reduction in poverty levels as a result of improved household incomes amongst participating households and consequently, rural development
  5. Enhanced community wellbeing in terms of improved social services.
  6. Foreign exchange earnings through exports and the attendant macro-economic impacts.