Will the Multi-Million Dollar Atiak Sugarcane Projects Benefit the People of Amuru?
Despite several talks by both investors and senior government officials that the multi-million-dollar sugar factory in Amuru District will spur development in northern Uganda, communities who are living in the area are however pessimistic. They are skeptical whether the sugar factory will have positive impact on their lives.
One of the projects, Atiak Sugar factory is owned by Dr. Hersi Amina Morghe, a Kenyan investor of Somali origin. The factory that is located on approximately 1,500 acres’ piece of land in Pacilo, Atiak Sub County in Amuru district and it is expected to produce around 50,000 metric tons of sugar on full production annually. Another sugar project will be will be implemented by Madhvani Group of Companies after government offered them 10,000-hectare piece of land in Lakang, Palyech parish in Amuru Sub County.
Combined, the two mega factories are expected to directly create around 10,000 jobs.
During Kabake Community Radio Programme recording at Abalokodi Trading Centre on July 21, 2019, residents say factory may not positively change their lives as it is being anticipated by both the government and investors. Kabake community radio Programme, which is recorded and aired on 102 Mega FM, one of the leading FM radio stations in Gulu district (northern Uganda) every Sunday between 10AM and 12noon is brought in partnership with Konrad Adenuer Foundation.
David Okot Obalo, one of the residents who contributed during Kabake Community Radio Programmme noted that the development has left several households without land.
“Building this factory here has brought a lot of enmity. Farmers are losing their land as the factory extends its boundaries. With time, we will become landless,’’ warns Obalo.
He adds that large forested areas have also been cleared to pave way for planting sugar canes.
According to Okema, hunting grounds and grazing areas have been replaced with sugarcane plantation.
Another resident, Justine Omony, says the funds that the government is injecting into the sugar canes project should have been used to support local developments in the area.
Jackline Anena agrees said “apart being deprived of land, the presence of the factory in the area is likely to lead to high rate of HIV infections”.
“There is a lot prostitution here. This risky sexual lifestyle could lead to high HIV infection rates,” notes Anena.
Other reasons why the residents are not happy the development in their area are; risk of famine, low pay, discrimination, poor working conditions and poverty.
However, Amos Olanya, one of the residents strongly disagree. Olanya said the factory will create job opportunities especially for the disadvantaged youth.
“The youth who never went to school for one reason or the other will get employment opportunities. The factory will also bring about development. For example, schools will be constructed here. This will greatly help our children,” notes Olanya. Olanya said he worked for a long time at Kakira Sugar Works Limited in Jinja, central Uganda before retiring in 2007.
Richard Okema, who is also in support of setting factory in the area agrees and said it has helped redundant youth to get employ and earn substantial amount of cash. Okema noted that before the factory was set up in the area, several youths were wasting a lot of valuable time drinking.
Out of 28 residents who contributed during the Kabake Community Radio Programme, 15 were in support while 13 said they do not see any positive that the factory will create on the lives of the locals.
Recently, the Kilak North County Member of Parliament (Amuru District), Anthony Akol said that sugarcanes out growers are likely to benefit from such investments. MP Akol explained that if government support such farmers financially, they are likely to be empowered and earn big from the investment.
Chairperson Atiak Sugarcane Out-growers Co-operative Society, Ms. Joyce Santa Laker, says currently, there are already 4,750 out-growers drawn from all the eight districts in Acholi and Adjumani district. Ms. Laker adds that she is hopeful that in the next two years, the number of their members will clock 10,000.
Addressing leaders from Acholi sub region in December last year, Dr. Amina, the Chief Executive Officer (CEO) of Horyal Investment Holding Company Limited revealed that the sugar factory will directly employ 1,500 local people once full production starts. “There are also future plans to build a university and a hospital on the 2,000 hectares of land where the sugar plantation and the factory sit”, according to Amina.
Finance Minister, Matia Kasiaja who visited Atiak Sugar recently said the investment will greatly improve on the livelihoods of local farmers especially in Acholi sub region which is coming out of war with a devastating effects on its population. The Minister also noted that government will not sit and see the investments fail to kick off and yet it creates jobs opportunities for the youth and revenue through taxation.
Report by James Owich, 102 Mega FM, Gulu
