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Uganda Sugar
Uganda's once substantial sugar industry, which had
produced
152,000 tons in 1968, almost collapsed by the early 1980s.
By
1989 Uganda imported large amounts of sugar, despite local
industrial capacity that could easily satisfy domestic
demand.
Achieving local self-sufficiency by the year 1995 was the
major
government aim in rehabilitating this industry.
The two largest sugar processors were Kakira and Lugazi
estates, which by the late 1980s were joint government
ventures
with the Mehta and Madhvani families. The government
commissioned
the rehabilitation of these two estates in 1981, but the
spreading civil war delayed the projects. By mid-1986
,work on
the two estates resumed, and Lugazi resumed production in
1988.
The government, together with a number of African and Arab
donors, also commissioned the rehabilitation of the
Kinyala Sugar
Works, and this Masindi estate resumed production in 1989.
Rehabilitation of the Kakira estate, delayed by ownership
problems, was completed in 1990 at a cost of about US$70
million,
giving Uganda a refining capacity of at least 140,000 tons
per
year
(see Manufacturing
, this ch.).
Data as of December 1990
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