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President Yoweri Kaguta Museveni has announced that the government will purchase the Mayuge Sugar Factory for Busoga sugarcane farmers.
The President made the announcement on Wednesday, August 6, 2025, while meeting sugarcane growers, millers, and sugar manufacturers from across Uganda at Kityerera State Lodge, Mayuge.
The move is in fulfilment of the government's pledge to build a sugarcane processing plant for Busoga sugarcane farmers.
During the meeting, the farmers gave the government a green light to go into purchase negotiations with the sugar factory. The new ownership model is expected to restore fairness in the sugar industry and ensure that profits return directly to the farmers.
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“I pledged to build a sugar factory for you. Recently, the people of Mayuge Sugar Factory came and wanted to sell it to me and give it to the poor people. Do you agree?” President Museveni asked, receiving a resounding “Yes!” from the farmers.
“Okay, we shall negotiate with them and buy it for you,” the President assured.
The meeting brought together key stakeholders from Uganda’s major sugarcane growing regions — Busoga, Buganda, Western, and Northern Uganda — and is part of President Museveni’s wider agenda to reform the agro-industrial sector and uplift communities from poverty.
President Yoweri Museveni met with Mayuge sugar farmers
President Yoweri Museveni met with Mayuge sugar farmers
Who should grow sugarcane?
The President gave a detailed economic analysis of sugarcane production, noting that the average returns — UGX 4 million per acre annually — are insufficient for families with small land holdings.
“Sugarcane should be grown by people with large chunks of land. Those with 2 acres will never get out of poverty with sugarcane, let’s be clear. You, the sugarcane growers, must agree on the minimum land size for one to engage in sugarcane farming,” Museveni said
He contrasted the income from sugarcane with alternative models, recommending the four-acre model for smallholder farmers. This includes growing food crops, coffee, pasture, and engaging in livestock, poultry, fish farming, or piggery.