Trade, Industry and Cooperatives Minister Amelia Kyambadde has hailed her ministry for the high rate at which the sugar industry in Uganda is growing.
While presenting a ministerial statement to parliament on Tuesday, Kyambadde said the sugar industry is one of the fastest growing industries in Uganda contributing over Shs290 billion in taxes in 2016/17 and employing over 60,000 Ugandans directly and indirectly.
According to Amelia, the Industry also produces over 100 megawatts of electricity from bagasse of which over 40megawatts is supplied to the national grid.
However, she noted that the taxes and the power generated have reduced of recent. “Currently, there are 30 licensed sugar mills in the country although only 11 are in operation while the rest are at different stages of development,” she said.
She further revealed that over the last 10 years sugar production has been increasing by nearly 12 per cent annually making Uganda the only sugar surplus producing country in East Africa Kenya produced 327,000 metric turns against page of demand of over 800,000 metric turns in 2017, Tanzania had a shortage of over 200,000 metric turns and Rwanda a shortage of 70,000 metric turns
The Minister also explained the hike in sugar prices last year which hit a maximum of Shs8 500 per kilo in some parts of the Country.
“The hiked prices were as a result of prolonged drought that stretched for a period of nine months from early 2016, increased regional demand of Uganda’s sugar especially in Kenya and Rwanda and increased cost of sugar cane from Shs85, 000 in 2016 to Shs175, 000 in 2017, she explained.
She also said her ministry has confirmed with Uganda Revenue Authority that there is no direct importation of duty free sugar, no dumping of sugar and smuggling which is mainly done by boda bodas through our porous borders and who repackaged in branded bags of Kakira, Kinyara and Lugazi sugar making it difficult for URA to seize.
According to Kyambadde, operations by seized over 55 metric turns of illicit sugar from July to December 2017.
“Sugar millers have stock piled over 0,000 metric tons of sugar as shown below, company sugar stock (MT) as at 12 02 2018 Kakira Sugar 13,712 Kinyara Sugar 22,099 SCOUL Lugazi 8,05 Mayuge Sugar ,000 GM Sugar 2,000 Kaliro Sugar,” she said.
She said smuggling of duty free sugar has not only hurt the sugar industry but also the out growers of sugarcane whose livelihoods entirely depend on supply of sugarcane to the factories, affected electricity generation and shall eventually affect other industries that depend on by products of sugar cane such as distillers of spirits, other beverages, bakeries and animal feed industries
She noted that to bring this current situation under control the government has agreed to undertake operation to curtail smuggling of sugar across borders commencing this week and allow controlled export of sugar to the regional market.
She revealed that she is contacting her colleague from Tanzania to have 25,000 metric turns of sugar exported to Tanzania and also formally contacting Kenyan colleague express our concern to the flow of sugar from across our common borders.

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Beverage giant Coca-Cola has announced an expansion of their product line with the official launch of Fuze Tea – a unique blend of tea extract and fruit flavors created through a fusion of tea, fruit, herbs and other natural ingredients.

Launched at the Coca-Cola bottling plant in Namanve, the preservative-free beverage comes in two flavors – Peach and Apple & Lemon Grass.

According to Coca-Cola Uganda Brand Manager, Miriam Limo, consumers’ tastes have evolved and so has Coca-Cola’s offerings and the launch of Fuze Tea is testament to the company’s innovation agenda.

“We recognize that our consumers’ have diverse tastes and preferences, and the launch of Fuze Tea gives us a unique opportunity to give our consumers a refreshing beverage to enjoy as they go about their busy schedules. This brand promises to deliver a unique great tasting refreshment with the benefits of tea,” Ms Limo said.

Following the launch of Fuze Tea, Coca-Cola will hold a series of activations with the aim of creating awareness and availing an opportunity for consumers to sample and purchase the refreshing drink.

“We shall set up Fuze Tea booths at universities, workplaces and malls to give our on-the-go consumers an opportunity to interact with the refreshing beverage,” stated Coca-Cola’s Marketing Manager Maggie Kigozi.

During the breakfast launch, media and staff were invited to sample the different Fuze Tea flavors and learn more about their ingredients.

Fuze Tea is currently available in 52 countries worldwide and is currently launching in 37 other countries across Europe. In East Africa, Uganda is the first country to launch Fuze Tea, with rollouts expected to follow in other markets.

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The Bank of Uganda (BoU) has reduced the Central Bank Rate (CBR) by 50 basis points to 9.0 percent. The band on the CBR will be maintained at +/-3 percentage points and the margin on the rediscount rate at 4 percentage points on the CBR, the bank says.

‘Given the objective of keeping inflation close to the target and the estimated spare capacity in the economy, a cautious easing of monetary policy is warranted to further boost private sector credit growth and to strengthen the economic growth momentum’, the Governor Bank of Uganda, Professor Emmanuel Tumusiime-Mutebile, wrote in the Monetary Policy Statement for February 2018 issued to the press in Kampala.

Further, Prof. Mutebile said the Bank has consequently reduced the rediscount rate and the bank rate to 13.0 percent and 14.0 percent, respectively.

Mutebile said there are indicators of a revival in private investment activity as reflected by the recovery of Foreign Direct Investment, which grew by 18.5 percent in 2017 compared to a decline of 30.5 percent in 2016. He added that shilling credit extended by 10.8 percent in December 2017 compared to 7.9 percent in December 2016.

There was also an increase of imports of raw materials and capital goods, which grew by 17.4 percent in 2017 compared to a decline of 21.1 percent in 2016.

‘These developments, coupled with an improving global economic outlook, could strengthen domestic economic activity,’ he noted.

Economic growth for Financial Year 2017/18 is now projected in the range of 5.0-5.5 percent, a positive payoff for the current stimulatory monetary policy,” he said.

Prof. Mutebile said non-performing loans as a percentage of gross loans have declined from a peak of 10.5 percent in December 2016 to 5.6 percent in December 2017, which he said should support credit extension.

However, he said that although public investment programmes could substantially raise output and be self-financing in the long run, ‘transitional challenges of funding these investments can be formidable, and may crowd out private sector borrowing, thus delaying the growth benefits of public investment’.

According to Prof. Mutebile, in the next five years, economic growth is projected to average 6.3 percent, boosted by public investments, increasing growth in consumption, and improved agricultural productivity.

There are nonetheless downside risks to this outlook, he says adding that  the growth of private sector credit remains below historic levels and that the cost of credit remains relatively high for micro and small loans while the cost to ‘corporates’ have declined.

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