Madhvani Group Expands Its Sugar Capacity
World Business Journal talks to Mayur Madhvani, Joint Managing Director, Madhvani Group of Companies, about expanding its footprint into various investment areas and plans to establish a new sugar mill in the Northern Region as it ramps up its sugar cultivation and manufacturing capacity.
What are the group’s latest developments and investment initiatives?
We’re establishing a new sugar mill in Uganda’s northern region, expanding sugar cane cultivation and manufacturing. This joint venture with the Uganda Development Corporation (UDC) will see the government holding a 49% stake. The complex will cover 30,000 hectares, including a nucleus estate for out-grower farmers. It will feature a sugar mill, a cogeneration plant for electricity, and a distillery unit for alcohol production. Initial investment for the first two phases is estimated at $150m, rising to $225-250m at full capacity. This will generate 9000 direct jobs, employ over 3000 out-grower farmers, and support ancillary service providers. The project will boost local infrastructure and business opportunities while providing the government with tax revenue and bioethanol for petrol blending.
Within our construction business, we’re currently engaged in a $4-5m project to redevelop the Source of the Nile tourist attraction in Jinja for the Ministry of Tourism, Wildlife, and Antiquities. We’re also handling housing and concrete work for a central processing facility for TotalEnergies and China National Offshore Oil (CNOOC).
Plans are underway for a new paper mill with a 200-tonne daily capacity, with an estimated investment of $15-18 m.
This will include wastepaper and pulp recycling to produce export-quality paper. Given Uganda’s reliance on imported paper goods, this venture stands poised to address and alleviate substantial foreign exchange outflows.
How has the group navigated Uganda’s private investment landscape since its establishment?
We’re one of Uganda’s largest private sector groups, employing over 16,000 people. Since 1914, we’ve excelled in revitalising dormant companies, leading in various sectors. Our flagship enterprise, Kakira Sugar (KSL), emerged in 1985 from the revitalisation of Madhvani Sugar Works. Under our management, the Kakira Sugar Complex has flourished, with funding from the World Bank, the African Development Bank, and the Uganda Development Bank. We recently expanded our centre-pivot irrigation project to 9300 ha, one of the largest in Central Africa.
In which sectors does the group plan to expand?
We’re exploring the potential of green steel manufacturing, utilising Uganda’s top-tier iron ore to minimise carbon footprints. We’re expanding our bioethanol production output by establishing a new sugar factory in Amuru. This complements our Kakira facility, which supports petrol blending and emission reduction efforts vital for sustaining Uganda’s transportation sector. Efforts are also ongoing to enhance our Marasa Africa Lodges, aiming to maximise the country’s tourism appeal.