The Atiak Sugar Factory History and Development

The Atiak Sugar Factory has a rich history that dates back to 1957, when it was first established in northern Uganda. It was a major investment in the country's agricultural sector.

The factory was initially built to process sugarcane from local farmers, providing them with a market for their produce and creating employment opportunities in the region. It was a significant economic boost for the area.

The factory was constructed with state-of-the-art technology for its time, allowing it to produce high-quality sugar that met international standards. This helped establish Uganda as a major sugar producer in Africa.

The Atiak Sugar Factory has a rich history dating back to the 1960s. It was established to provide employment and economic opportunities to the local community.

The factory was initially set up as a joint venture between the Ugandan government and a private company. It began operations in 1964.

The factory's operations were focused on producing sugar from sugarcane, which was grown in the surrounding areas.

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The Atiak Sugar Factory has a massive production capacity, crushing 1,650 tonnes of raw sugar cane daily. This daily crush produces 66,000 tonnes of powder sugar annually.

The factory was initially expected to be commissioned in May 2016, with first sugar distribution planned for June 2017. Unfortunately, the commissioning date was pushed back to June 2019.

Over 1,500 people will be employed at the factory, making it a significant source of jobs in the region. The factory has also contracted with over 5,000 out-growers.

A key partnership has been established with Gulu Women Entrepreneurs Association Limited (GWEAL), which aims to develop Northern Uganda. This collaboration is a great example of a company giving back to the community.

In July 2017, the government of Uganda provided a credit facility of US$17.4 million to Horyal Investments Holding Company Limited, the owner of the factory. This loan will help the company finish construction, procure machinery, and start sugar production.

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Construction on the project was estimated to be 70 percent completed as of July 2018.

The supervising engineering company, Sugarnpower Projects Private Limited from India, was responsible for overseeing the construction process.

Amina Morghe Hersi had invested an estimated USh272 billion (US$70 million) in the project by July 2018.

UDC had invested USh65 billion (US$17 million) in the project by July 2018.

Completion of the project was initially slated for the first quarter of 2020, according to a report by the Daily Monitor newspaper in October 2019.

Commercial production was expected to start in August 2020, according to The Independent (Uganda) newspaper in July 2020.

Dr. Amina Moghe Hersi indicated in March 2020 that commissioning of the factory was slated for April 2020.

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Our company's headquarters and main factory are located in Gem Village, Pachilo Parish, Atiak sub-county, Kilak County, in Amuru District, in the Northern Region of Uganda.

It's situated approximately 17 kilometres north of Atiak Town.

Atiak Town itself is located about 69 kilometres north of Gulu, the largest city in Northern Uganda.

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Atiak Sugar Factory is a subsidiary of Horyal Investment Holding Company Limited, owned by Amina Moghe Hersi, a female Kenyan entrepreneur of Somali descent.

The government of Uganda has a significant stake in the factory, with the Uganda Development Corporation (UDC) initially taking a 10.1 percent ownership in May 2018 for an investment of USh20 billion (approximately US$5.5 million).

In July 2018, UDC invested another USh45 billion (approx. US$11.6 million), raising its stake in the factory to 32 percent. By April 2019, the government's shareholding had increased to 44 percent.

Here's a breakdown of the ownership structure of Atiak Sugar Limited as of September 2023:

The ownership structure of Atiak Sugar Limited has changed over time, with Horyal Investments Holding Company Limited initially holding a 68 percent stake in July 2018, which decreased to 56 percent by May 2019, and then to 51 percent by September 2023.

The Atiak Sugar Factory has faced a significant challenge in recent years, with a production halt in March 2022 due to inadequate cane supply.

The factory was projected to shut down for a short time, but current projections suggest it will likely resume production in 2025.

In 2022/2023, the Parliament of Uganda approved USh108 billion (approx. US$28.5 million) to establish an irrigation system and procure machinery to boost productivity.

This investment is expected to enable the factory to crush 1,650 tonnes of raw cane daily when production resumes in late 2024 or early 2025.

In March 2022, the Atiak Sugar Factory in Amuru District temporarily shut down sugar production due to inadequate cane supply.

The factory was projected to shut down for a short time, but current projections now point to 2025 when it's likely to resume production.

The Atiak Sugar Factory will rely on irrigation and mechanization to boost productivity when it resumes production in late 2024 or early 2025.

It's expected to be able to crush 1,650 tonnes of raw cane daily.

The Parliament of Uganda approved USh108 billion (approx. US$28.5 million) to establish an irrigation system and procure machinery during the 2022/2023 financial year.

This investment will help mechanize tasks such as land clearing, planting, weeding, harvesting, and collection of harvested cane.

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Co Generation is a key aspect of the factory's operations. The factory is expected to have a crushing capacity of 1,650 metric tonnes of sugarcane daily.

This capacity will also enable the co-generation of 6 megawatts of electricity. Future production plans are ambitious, aiming to increase the crushing capacity to 3,500 metric tonnes of sugarcane daily.

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