NWOYA– Members of the Parliamentary Committee on Trade, Tourism and Industry have commended Bukona Agro Processors Ltd, a local factory in Nwoya district that is manufacturing cooking fuel out of cassava.
The MPs were excited that the factory is producing ethanol from cassava that will mainly be used for cooking, contributing to the reduction in the cutting of forests for charcoal and firewood collection.
“I am very happy with this kind of investment as an environmentalist because the future they are saving is invaluable. You look at environmental degradation going on by use of charcoal and we now have alternative energy; this is something we should support strongly,” said Bwamba County MP Richard Gafabusa.
Legislators were further impressed that the investor is making bio-stoves and pressure cookers that use ethanol as a source of energy for cooking.
The committee visited the company on June 18 2022 during its oversight visit to projects where government has made investments under the Uganda Development Corporation [UDC].
Government has invested Shs11.9 billion in Bukona Agro Processors Company representing a 40.5 percent shareholding.
MPs were however concerned that despite the demonstrable potential of the project, the factory runs on diesel when Nwoya district has a power substation with the capacity to run such a factory.
“What are you thinking to support this investment with billions of shillings and there is no power? What is difficult about extending power here to support production?” Asked Gafabusa.
Nwoya East County MP Charles Okello appealed to UDC to push government so that it connects the factory to the electricity line.
However, the committee members were not happy on learning that the factory contracted Nwoya farmers to plant cassava but did not buy it. The farmers allegedly abandoned the factory which is currently buying cassava from Kitgum, kilometers away.
“The failure of the factory to buy cassava caused problems even with our local leaders; the next time Bukona will go back to ask the same people to supply them cassava, they will not trust them,” said Okello.
The committee asked UDC to request the Operation Wealth Creation officials to motivate Nwoya farmers with seedlings so that they resume large-scale cassava farming to supply the factory.
UDC was also tasked to explain their basis for investing in a project that is a starter moreover without a steady source of raw materials amidst high costs of operations.
“We need to know what convinced you to support this project which we heard that it once collapsed in 2019. How did you reassess the project and how did you reach at this amount you are investing? Is there any benefit for government?” Omoro District Woman MP Catherine Lamwaka asked.
The Director Investment at UDC, Andrew Mugerwa assured the MPs of their commitment to connecting the factory to the national power grid. “We were aware there was no electricity but we made a covenant to make a follow-up on electricity and we shall report on this,” said Mugerwa.
The committee also visited Delight Nwoya Farm which UDC has earmarked for investment. The fruit farm which sits on 1700 acres of land is seeking about Shs 70 billion to start a fruit processing factory.
https://thecooperator.news/agago-commercial-farmers-excited-over-oil-factory-plans/
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