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Will Madhivani''s Amuru Sugar Complex answer Northern Uganda economic misery?
Will Madhivani''s Amuru Sugar Complex answer Northern Uganda''s economic misery...?
SOON or later the Madhivani
Group of Companies in Uganda will be unveiling a US $60million (shs110 billion) for the people in Northern Uganda for the establishment of a sugar complex in Amuru district. Amuru is one of the new districts in Uganda curved off from Gulu. The proposal was recently (July 26) put before the Acholi Parliamentary group by the sugar gurus. While receiving the proposal, the chairperson of the group Hon. Okello Okello said they would welcome any investor because the north has been left behind for 21 years and can not wait.
The North, mainly the Acholi people have suffered the Lord''s Resistance Army rebel activities for the last two decades. The Madhivanis while surveying the suitable site, zeroed on Amuru district because of its low population, the climatic conditions, source of water (from the Nile) and soil suitability for sugar cane.
The Joint Managing Director of Madhivani group Mr. Mayur Madhivani says Uganda can not wait on establishing another sugar factory to counter the project high demand in the near future. "Many things have flourished in Busoga as a result of Kakira Sugar factory and we want to see the same in Amuru", he told the legislators.
He said Kakira gives out shs1.3 billion to out grower farmers in Busoga area every month. He said Uganda desperately needs another sugar industry to counter the local and international demand adding that it was imperative to have support from all stakeholders. According to plans, Amuru will be another world of its own like in Kakira Sugar Works. Kakira has its own schools, hospital, bank, places of workshop, and best road network both on tarmac and marrum. With a workforce of 7500 employees at Kakira, the Madhivanis are assuring the people that the same will be reciprocated in Amuru. The project components include 40,000 ha of land for the nucleus estate and for out growers'' scheme. Of this land, the sugarcane out growers will be allocated 10,000 ha.
The plan according to the proposal handed the lawmakers from the North is to develop 1,000 sugarcane out growers each with 10ha and access roads, housing and facilities in out grower village. It is further proposed that out of the 10ha of land, out growers will be required to use two for growing food crops. Fast growing timber trees to be planted on farm boundaries. Mayor said the Company will provide services on credit that include agricultural equipment for land clearing, ploughing, harrowing and furrowing and extension services among others.
Deductions for the services will be made over 3 crop payments. It will however be incumbent to the out grower to provide labour for planting, crop maintenance, weeding and harvesting. In the first phase, the sugar factory will be put up with the capacity of 2,500 Tons Cane Crushing per day, co-generation plant to generate steam and electricity for own use. Others will include the factory and out growers infrastructure. At least 1000 housing units, schools, hospital and religious facilities will be in place.
Costs
Madhivani group will seek government assistance to identify development agency funding of US $25 million for out grower scheme. Each out grower will pay rent for the 10ha of land, housing actual costs for children''s education and medical treatment. Mayur further said each out grower''s net monthly income will be shs340, 800 per month and the scheme will provide employment to 1,000 farmer families.
He said the scheme has a multiplier effect as out growers will provide employment to cane cutters, private transporters will get guaranteed income from cane transport and the out grower village will provide essential community services.
"What we want is the land and support from all stakeholders. The funds required to start thein place", Mr. Mayur told the Acholi legislators.
Aswa County MP Reagan Okumu said politicians from the North were searching for investors for the region ravaged by the war for the last 21 years adding that the success of Amuru Sugar Complex will reduce the gap between the rich and poor.
After those many years of war suffering, will the people of Northen Uganda gain a smail from the Amuru Sugar Complex?Write your abstract here.
Published: August 11, 2007
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