Plans are underway to begin constructing the  $30m (sh114b)  Kidera Sugar Ltd in Buyende District, a factory that will manufacture industrial or refined sugar. 

Beverage manufacturers, bakeries, confectionaries, pharmaceuticals & other industrial white sugar consumers will purchase sugar from this local plant saving Uganda lots of money annually in foreign exchange. 

The state minister for trade, Harriet Ntabazi, along with officials from the Uganda Investment Authority officiated at the launch of the plant on Saturday in Buyende District. 

Robert Mukiza, the executive director at the Uganda Investment Authority, said the deal to set up the factory was initiated with Modern Group the Dubai 2020 Expo.  

Mukiza said the plant would help save Uganda $50m (sh188b) it has been losing through importing refined sugar. Uganda imports refined sugar that is used in factories for production of soft drinks, medicines, pharmaceuticals, jams, jellies, meats, chewing gum, dairy products, bakery products, cereals, liquid sugar, powdered sugar, candies, and powdered drink mixes. 

The company has promised to invest $30m in the project. Over 1,500 direct and 8000 indirect jobs expected to be created according to Ntabazi.  

Ntabazi said the refined sugar produced will lead to the production of many products in Uganda many of which had been imported. 

“This is the first investment of this kind in this district. We want more investors like these in quality investors who have both the business and finances to implement their projects,” Ntabazi said. 

The local demand for industrial sugar ranges between 78,000 metric tonnes to 90,000 metric tonnes annually according to the ministry of trade, industry and cooperatives. While the demand for industrial sugar stands at 150,000 metric tonnes in the East Africa region. 

The ministry of trade, industry and cooperatives has licensed six other companies to produce refined industrial sugar and are at different stages of implementation. They include Sugar Corporation of Uganda, Kinyara Sugar Ltd, GM Sugar Ltd, Mayuge Sugar Industries, Kamuli Sugar Ltd and Uganda Group of Industries Ltd.