Kinyara Sugar Works Ltd in Masindi District is among the three sugar millers in Uganda to benefit from exporting sugar to neighbouring Tanzania.
This follows President Yoweri Museveni assenting to the Sugar Act, 2020 as final deliberations are being made for the country to export its surplus sugar prior to the end of May this year.
Uganda will export 20,000 metric tonnes of her first consignment after Mr Museveni assented to the Bill on Tuesday, April 24, 2020, according to the presidential press secretary, Ms Linda Nabusayi.
Kinyara Sugar Works Ltd owned by Kenyan-based Rai Group will contribute to the export with other two sugar manufacturers including Kakira Sugar Ltd owned by the Madhvani Group and the Sugar Corporation of Uganda Ltd (SCOUL) owned by the Mehta Group.
This has opened up markets for the three millers to sell off their surplus sugar to the East African nation.
“The sugar industry of Uganda will be exporting 20,000 metric tonnes of brown sugar to the United Republic of Tanzania by the end of May 2020. This is the first consignment which has opened up market opportunities for the Ugandan sugar millers who have surplus production,” part of the statement read.
Uganda is the only East African Community (EAC) member state that produces excess sugar for export with its surplus estimated at more than 100,000 tonnes by the end of 2018.
A Bloomberg report indicated that in 2017, Uganda approximately produced 365,452 tonnes of sugar against an annual consumption of 360,000 tonnes.
According to Ms Nabusayi, on Monday, Mr Museveni reportedly interfaced with Tanzanian representatives led by the Managing Director of Kagera Sugar Limited, Mr Seif Ally Seif in a meeting that was also attended by Trade Minister, Ms Amelia Kyambadde.
While in the meeting, President Museveni hailed his Tanzanian counterpart, Mr John Pombe Magufuli, for the deal. He said this would strengthen the EAC.
“Everything here can grow easily except that we have been lagging behind because of politics of identity and primitive farming methods based on a subsistence way of life. With some sensitisation, Ugandans are waking up and so we are able to have surplus,” Mr Museveni is quoted to have said.
Ms Kyambadde said Port Bell to Mwanza will be the transportation medium since it is safer and cheaper.
She added that Uganda has a good sugar market with a surplus of 48,000 metric tonnes that will help Tanzania to overcome her sugar shortage.
“Our sugar industry comprises of 11 functional sugar mills producing 510,000 metric tonnes and sufficient for export. During COVID-19, the prices of sugar have remained stable at less than Shs4, 000 per kilogramme although there was some hoarding and panic shopping at the beginning of the virus outbreak,” the minister said.