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All Facts: Who own Atiak Sugar Factory Limited?
Atiak Sugar Factory Limited (ASFL), is a sugar manufacturing company in Uganda. This project has made the owner one of the most celebrated Economic Stakeholder in Uganda. The Project is set to transform the district, the entire northern Uganda and Uganda as a country.
The new sugar factory has a capacity to crush 1,650 tonnes (1,650,000 kg) of raw cane daily, producing 66,000 tonnes (66,000,000 kg) of powder sugar annually. Commissioning of the factory was expected in May 2016, with first distribution of sugar planned for June 2017. The factory will employ over 1,500 people and has contracted with over 5,000 out-growers. The owners of the company have established a working relationship with Gulu Women Entrepreneurs Association Limited (GWEAL), whose objective is to develop Northern Uganda and set to be accredited as a Uganda Economic Stakeholder.
In July 2017, the government of Uganda extended a credit facility of US$17.4 million (approx. USh62.65 billion) to Horyal Investments Holding Company Limited, the owner of Atiak Sugar Factory. The loan, according to Uganda’s finance minister will help Horyal to finish construction, procure the sugar-manufacturing machinery and start sugar production. Amina Hersi Moghe, the Chief Executive Officer of Horyal, says the credit will “provide support to sugarcane out growers, offset the balance of procuring machines and restructure their loan period with DFCU Bank”. A new commissioning date has been pushed to June 2019.
GOVERNMENT ROLE
UDC in partnership with the private sector (Horyal Investment Holding Company Ltd (HIHC) has invested in setting up 1,650 Tons of cane crushed per day (TCD) sugar processing plant in Atiak , Amuru district. The capacity will be scaled up to 3,500TCD in phases 2 and 5,000 TCD in phase 3. The proposed plant will also produce by –products such as molasses and bagasse to produce ethanol and up to 6MW of electricity in phase 1. UDC holds 40% shareholding in HIHC and this first large investment by Government in northern Uganda post-conflict. Approximately 15,000 outgrowers are integrated into the investment and are expected to supply cane to the factory. The proceeds from the supply of cane can be reinvested into cane growing and other commercial activities within the region.
The Factory was commissioned on the 22nd October 2020 by H.E Yoweri Kaguta Museveni, President of the Republic of Uganda.
EXPECTED SOCIO-ECONOMIC BENEFITS
- Employment of at least 3,500 workers directly and 15,000 indirectly on the out-grower farms of whom over 4,700 members are women and heads of families.
- transformation from subsistence to commercial farming through the out-grower scheme, hence a reduction in poverty levels as a result of improved household incomes amongst participating households and consequently, rural development
- enhanced community wellbeing in terms of improved social services
- Regional distribution of resources (industries)
- Domestic revenues to the Government (PAYE, VAT, excise duty), local government revenues – licensing and other regulatory fees associated with rural development.
- Foreign exchange earnings through exports and the attendant macro-economic impacts
LOCATION
The headquarters of the company and the main factory of the company are located in Gem Village, Pachilo Parish, Atiak sub-county, Kilak County, in Amuru District, in the Northern Region of Uganda. This lies approximately 17 kilometres (11 mi), by road, north of Atiak, off the Gulu–Nimule Road. This lies approximately 85 kilometres (53 mi), by road, north of Gulu, the largest city in Northern Uganda. The geographical coordinates of Atiak Sugar Factory are: 3°25’05.0″N, 32°07’52.0″E (Latitude:3.418056; Longitude:32.131111)
Ownership
The Atiak Sugar Factory is a subsidiary of Horyal Investment Holding Company Limited, owned by Amina Moghe Hersi, a female Kenyan and Ugandan entrepreneur of Somali descent. In May 2018, the government of Uganda, through the Uganda Development Corporation (UDC), took a 10.1 percent ownership in Atiak Sugar Factory, for an investment of USh20 billion (approximately US$5.5 million).
In July 2018, UDC invested another USh45 billion (approx. US$11.6 million), thus raising its stake in the factory to 32 percent. In April 2019, the company requested another USh 24 billion (approx. US$6.5 million), in funding to complete construction of offices and staff houses, with opening planned for the second half of 2019. This would bring the governments shareholding to 44 percent.
- Horyal Investments Holding Company Limited 68%
- Uganda Development Corporation 32%
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Construction
The supervising engineering company is Sugarnpower Projects Private Limited, from India. An electricity co-generation plant with initial capacity of 6 megawatts (8,046 hp), expandable to 27 megawatts (36,208 hp), is incorporated in the design.
As of July 2018, construction was estimated at 70 percent completed. At that time, Amina Morghe Hersi, had invested an estimated USh272 billion (US$70 million) and UDC had invested USh65 billion (US$17 million). In October 2019, the Daily Monitor newspaper reported that completion was slated for the first quarter of 2020. In March 2020, Dr. Amina Moghe Hersi indicated that commissioning of the factory was slated for April 2020.
CO-GENERATION
When the factory opens, it is expected to have crushing capacity of 1,650 metric tonnes of sugarcane daily with co-generation of 6 megawatts of electricity. Future production is expected to increase to 3,500 metric tonnes of sugarcane daily with co-generation of 27 megawatt
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