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KAMPALA, Uganda (Dow Jones)—Uganda’s president Tuesday accused opposition politicians and environmental activists of hampering sugar expansion projects and denying the country a chance to industrialize its economy.
Yoweri Museveni made the remarks while addressing National Resistance Movement party delegates at the state house in Entebbe.
"Madhavani’s sugar project in Amuri district is being frustrated by the opposition, they have also frustrated the expansion of Sugar Corp. of Uganda Ltd.," he said, adding environmentalists had delayed the construction of Bujagali power station, plunging the country into a power crisis.
Museveni said the government won’t tolerate economic saboteurs and remains committed to industrialization.
The Madhavani Group owns Kakira Sugar Works Ltd., Uganda’s largest producer. The company has been trying to acquire up to 40,000 hectares of land in Amuri district to set up a second plant, but the project - slated to kick off last year - remains behind schedule due to delays in land acquisitions. Local politicians have accused the company of trying to grab communal land for the project.
In 2007, Sugar Corp. of Uganda Ltd., or SCOUL, unsuccessfully tried to expand its plantation in a nearby forest reserve following violent protests by environmental activists. SCOUL, which wants to double output and reduce costs of production, is yet to find alternative land.
Uganda’s sugar production is seen at 350,000 metric tons next year, compared with around 230,000 tons last year.