Kinyara Sugar Works
Encyclopedia
Kinyara Sugar Works, whose complete name is Kinyara Sugar Works Limited (KSWL) is a sugar
manufacturer in Uganda
.
, Western Uganda
. Kinyara lies approximately 15 kilometres (9.3 mi), by road, west of Masindi
, the nearest large town. This location lies approximately 230 kilometres (142.9 mi), by road, northwest of Kampala
, the capital of Uganda and the largest city in that country. The coordinates of Kinyara Sugar Works Limited are:+1° 38' 7.80"N, +31° 36' 19.80"E (Latitude:1.635500; Longitude:31.605500). In addition to the factories at Kinyara, the company maintains a corporate office in Kampala
and warehouses, in Kampala and Masindi
.
in Uganda
, producing an estimated 110,000 metric tonnes annually, accounting for approximately 31% of national output. Kakira Sugar Works
, located in Kakira
, Jinja District
, is the nation's largest sugar producer, accounting for approximately 47% of national output. Sugar Corporation of Uganda Limited
(SCOUL), located in Lugazi
, Buikwe District
, produces about 60,000 metric tonnes, about 17% of national output. Uganda's fourth-largest sugar producer is Sango Bay Estates Limited
, producing 15,000 metric tonnes annually, accounting for about 5% of total ouutput in Uganda in 2011. The estimated 350,000 metric tonnes of sugar produced by the four leading sugar manufacturers in Uganda is marketed to the Eastern African countries of Burundi
, Democratic Republic of the Congo
, Kenya
, Rwanda
, South Sudan
, Tanzania
and Uganda
.
in Masindi District
. During the political and economic turmoil in Uganda in the 1970s and 1980s, Kinyara was adversely affected and production of sugar ceased. In the 1990s, as part of revitalization efforts, the government sold 51% shareholding in Kinyara Sugar Works Limited to the Rai Group, a Mauritius
-based investment group. KSWL has recovered and the Ugandan government is planning to divest the remaining 49% it ows in the enterprise, by floating its shares in an IPO
on the Uganda Securities Exchange
.
In September 2011, the Uganda government sold a further 19% shareholding in KSWL to the Rai Group for US$9.1 million in cash. The sales agreement calls for the Rai Group to float the 19% shareholding it has just acquired in an IPO
on the Uganda Securities Exchange after five years. Previous agreements call for the sale of the remaining 30% shareholding to the following entities: (a) 10% to the Omukama of Bunyoro
(b) 10% to the KSWL outgrowers and (c) 10% to the KSWL employees. That process is ongoing.
{| style="font-size:100%;"
|-
| width="100%" align="center" | Kinyara Sugar Works Stock Ownership
|- valign="top"
|
{| class="wikitable sortable" style="margin-left:auto;margin-right:auto"
! style="width:2em;" |Rank !!Name of Owner!!Percentage Ownership
|-
|1||Rai Group of Mauritius
||70.00
|-
|2||Government of Uganda||30.00
|-
| ||Total||100.00
|-
|}
, a 14.5MW bagasse-fired thermal electrical plant which is in the process of expanding popwer production capacity to 35MW by 2015.
Sugar
Sugar is a class of edible crystalline carbohydrates, mainly sucrose, lactose, and fructose, characterized by a sweet flavor.Sucrose in its refined form primarily comes from sugar cane and sugar beet...
manufacturer in Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
.
Location
The main factories of the company are located in the town of Kinyara, in Masindi DistrictMasindi District
Masindi District is a district in Western Uganda. Like many other Ugandan districts, it is named after its 'chief town' of Masindi, the location of the district headquarters. The region of the country in which the district is located is comparatively dry, but is fertile enough to support a...
, Western Uganda
Western Region, Uganda
Western Region is a region of Uganda. It is divided into the following districts:...
. Kinyara lies approximately 15 kilometres (9.3 mi), by road, west of Masindi
Masindi
Masindi is a town in Western Uganda, which lies on the road from Kampala to the Murchison Falls National Park. It is the 'chief town' of the Masindi District and the district headquarters are located there...
, the nearest large town. This location lies approximately 230 kilometres (142.9 mi), by road, northwest of Kampala
Kampala
Kampala is the largest city and capital of Uganda. The city is divided into five boroughs that oversee local planning: Kampala Central Division, Kawempe Division, Makindye Division, Nakawa Division and Lubaga Division. The city is coterminous with Kampala District.-History: of Buganda, had chosen...
, the capital of Uganda and the largest city in that country. The coordinates of Kinyara Sugar Works Limited are:+1° 38' 7.80"N, +31° 36' 19.80"E (Latitude:1.635500; Longitude:31.605500). In addition to the factories at Kinyara, the company maintains a corporate office in Kampala
Kampala
Kampala is the largest city and capital of Uganda. The city is divided into five boroughs that oversee local planning: Kampala Central Division, Kawempe Division, Makindye Division, Nakawa Division and Lubaga Division. The city is coterminous with Kampala District.-History: of Buganda, had chosen...
and warehouses, in Kampala and Masindi
Masindi
Masindi is a town in Western Uganda, which lies on the road from Kampala to the Murchison Falls National Park. It is the 'chief town' of the Masindi District and the district headquarters are located there...
.
Overview
KSWL is the second-largest manufacturer of sugarSugar
Sugar is a class of edible crystalline carbohydrates, mainly sucrose, lactose, and fructose, characterized by a sweet flavor.Sucrose in its refined form primarily comes from sugar cane and sugar beet...
in Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
, producing an estimated 110,000 metric tonnes annually, accounting for approximately 31% of national output. Kakira Sugar Works
Kakira Sugar Works
Kakira Sugar Works Limited, often referred to as Kakira Sugar Works , is a leading sugar manufacturer in Uganda.-Overview:Kakira Sugar Works is the largest manufacturer of sugar in Uganda, producing an estimated 165,000 metric tonnes annually, accounting for about 47% of the national output in 2011...
, located in Kakira
Kakira
Kakira is a town in Eastern Uganda. It is the location of the International headquarters of the Madhvani Group.-Location:Kakira is located in Jinja District, approximately east of downtown Jinja on the highway to Iganga...
, Jinja District
Jinja District
Jinja District is a district in Eastern Uganda. Like most Ugandan districts, it is named after its main municipal and commercial center, Jinja.-Location:...
, is the nation's largest sugar producer, accounting for approximately 47% of national output. Sugar Corporation of Uganda Limited
Sugar Corporation of Uganda Limited
-Overview:SCOUL is the third-largest manufacturer of sugar in Uganda, producing an estimated 60,000 metric tonnes annually, accounting for approximately 17% of national output. Kakira Sugar Works, in Kakira, Jinja District, is the largest sugar manufacturer in the country, accounting for...
(SCOUL), located in Lugazi
Lugazi
Lugazi is a town in Buikwe District, in Central Uganda. The town is also called Kawolo, and the two names are interchangeably used by the local inhabitants.-Location:...
, Buikwe District
Buikwe District
Buikwe District is a district in the Central Region of Uganda. It is named after its 'chief town', Buikwe, where the district headquarters are located.-Location:...
, produces about 60,000 metric tonnes, about 17% of national output. Uganda's fourth-largest sugar producer is Sango Bay Estates Limited
Sango Bay Estates Limited
Sango Bay Estates Limited , also Sango Bay Estates is a sugar manufacturer in Uganda.-Overview:SBEL sits on approximately of land. It is the fourth-largest manufacturer of sugar in Uganda, producing an estimated 15,000 metric tonnes annually in 2011, accounting for approximately 5% of national...
, producing 15,000 metric tonnes annually, accounting for about 5% of total ouutput in Uganda in 2011. The estimated 350,000 metric tonnes of sugar produced by the four leading sugar manufacturers in Uganda is marketed to the Eastern African countries of Burundi
Burundi
Burundi , officially the Republic of Burundi , is a landlocked country in the Great Lakes region of Eastern Africa bordered by Rwanda to the north, Tanzania to the east and south, and the Democratic Republic of the Congo to the west. Its capital is Bujumbura...
, Democratic Republic of the Congo
Democratic Republic of the Congo
The Democratic Republic of the Congo is a state located in Central Africa. It is the second largest country in Africa by area and the eleventh largest in the world...
, Kenya
Kenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...
, Rwanda
Rwanda
Rwanda or , officially the Republic of Rwanda , is a country in central and eastern Africa with a population of approximately 11.4 million . Rwanda is located a few degrees south of the Equator, and is bordered by Uganda, Tanzania, Burundi and the Democratic Republic of the Congo...
, South Sudan
South Sudan
South Sudan , officially the Republic of South Sudan, is a landlocked country located in the Sahel region of northeastern Africa. It is also part of the North Africa UN sub-region. Its current capital is Juba, which is also its largest city; the capital city is planned to be moved to the more...
, Tanzania
Tanzania
The United Republic of Tanzania is a country in East Africa bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The country's eastern borders lie on the Indian Ocean.Tanzania is a state...
and Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
.
History
In the late 1960's, the Government of Uganda, established a sugar plantantion and factory at Kinyara, just outside the town of MasindiMasindi
Masindi is a town in Western Uganda, which lies on the road from Kampala to the Murchison Falls National Park. It is the 'chief town' of the Masindi District and the district headquarters are located there...
in Masindi District
Masindi District
Masindi District is a district in Western Uganda. Like many other Ugandan districts, it is named after its 'chief town' of Masindi, the location of the district headquarters. The region of the country in which the district is located is comparatively dry, but is fertile enough to support a...
. During the political and economic turmoil in Uganda in the 1970s and 1980s, Kinyara was adversely affected and production of sugar ceased. In the 1990s, as part of revitalization efforts, the government sold 51% shareholding in Kinyara Sugar Works Limited to the Rai Group, a Mauritius
Mauritius
Mauritius , officially the Republic of Mauritius is an island nation off the southeast coast of the African continent in the southwest Indian Ocean, about east of Madagascar...
-based investment group. KSWL has recovered and the Ugandan government is planning to divest the remaining 49% it ows in the enterprise, by floating its shares in an IPO
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
on the Uganda Securities Exchange
Uganda Securities Exchange
The Uganda Securities Exchange is the principal stock exchange of Uganda. It was founded in June 1997. The USE is operated under the jurisdiction of Uganda's Capital Markets Authority, which in turn reports to the Bank of Uganda, Uganda's central bank.The exchange's doors opened to trading in...
.
In September 2011, the Uganda government sold a further 19% shareholding in KSWL to the Rai Group for US$9.1 million in cash. The sales agreement calls for the Rai Group to float the 19% shareholding it has just acquired in an IPO
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
on the Uganda Securities Exchange after five years. Previous agreements call for the sale of the remaining 30% shareholding to the following entities: (a) 10% to the Omukama of Bunyoro
Omukama of Bunyoro
Omukama of Bunyoro is the title given to rulers of the central African kingdom of Bunyoro-Kitara. The kingdom lasted as an independent state from the 16th to the 19th century. The Omukama of Bunyoro remains an important figure in Ugandan politics, especially among the Banyoro people of whom he...
(b) 10% to the KSWL outgrowers and (c) 10% to the KSWL employees. That process is ongoing.
Ownership
, the shareholding in KSWL is as illustrated in the table below:{| style="font-size:100%;"
|-
| width="100%" align="center" | Kinyara Sugar Works Stock Ownership
|- valign="top"
|
{| class="wikitable sortable" style="margin-left:auto;margin-right:auto"
! style="width:2em;" |Rank !!Name of Owner!!Percentage Ownership
|-
|1||Rai Group of Mauritius
Mauritius
Mauritius , officially the Republic of Mauritius is an island nation off the southeast coast of the African continent in the southwest Indian Ocean, about east of Madagascar...
||70.00
|-
|2||Government of Uganda||30.00
|-
| ||Total||100.00
|-
|}
Production outlook
In September 2011, the Rai Group, who own 70% of the company shares, signed commitments to (a) invest US$55 million in the factory within three years (b) increase production to at least 200,000 metric tonnes annually within the same time period and (c) use the baggase to generate 35MW of electricity, of which 22 MW will be sold to the national grid.Subsidiaries
Kinyara Sugar Works Limited is the 100% owner of Kinyara Power StationKinyara Power Station
Kinyara Power Station is a 14.5MW bagasse-fired thermal power plant located in the town of Kinyara in Masindi District, in Western Uganda.-Location:...
, a 14.5MW bagasse-fired thermal electrical plant which is in the process of expanding popwer production capacity to 35MW by 2015.
External links
- Website of Kinyara Sugar Works
- Uganda's Total Annual Sugar Production To Hit 350,000 Metric Tonnes In 2011
- Website of Uganda Sugar Cane Technologists’ Association (USCTA)
See also
- MasindiMasindiMasindi is a town in Western Uganda, which lies on the road from Kampala to the Murchison Falls National Park. It is the 'chief town' of the Masindi District and the district headquarters are located there...
- Masindi DistrictMasindi DistrictMasindi District is a district in Western Uganda. Like many other Ugandan districts, it is named after its 'chief town' of Masindi, the location of the district headquarters. The region of the country in which the district is located is comparatively dry, but is fertile enough to support a...
- Economy of UgandaEconomy of UgandaEndowed with significant natural resources, including ample fertile land, regular rainfall, and mineral deposits, it is thought that Uganda could feed the whole of Africa if it was commercially farmed. The economy of Uganda has great potential, and it appeared poised for rapid economic growth and...
- List of sugar manufacturers in Uganda
- List of power stations in Uganda