Hoima Sugar Limited

{{Infobox company |

name = Hoima Sugar Limited|

logo = |

type = Private|

company_slogan = |

foundation = 2016|

location = Kiswaza, Hoima District, Uganda|

key_people = Sarbhjit Singh Rajima
Executive Director|

num_employees = 5,000+ (2016)|

revenue = |

assets = |

industry = Manufacture & Marketing of Sugar|

products = Sugar|

homepage = |

}}

Hoima Sugar Limited (HSL), also Hoima Sugar is a sugar manufacturer in Uganda, the third-largest economy in the East African Community and responsible for massive deforestation.{{cite web| url=https://www.theeastafrican.co.ke/business/Conservationists-kingdom-clash-over-Ugandan-forest/2560-5146220-yhjygpz/index.html |title=Trees or sugar? Conservationists, traditional kingdom clash over Ugandan forest |newspaper=The EastAfrican |date=5 June 2019 |access-date=5 June 2019 |author= Reuters | location=Nairobi}}

Location

The company headquarters and factory are located on an {{convert|8000|acre|km2}} estate in Kiswaza Village, Kiziranfumbi sub-county, Hoima District,{{cite web|url=http://capitalradio.co.ug/hoima-sugar-limited-expected-employ-5000-people/|title=Hoima Sugar Limited Expected To Employ Over 5,000 People |first=Moses |last=Kidandi|publisher=Capital Radio Uganda| location=Kampala| accessdate=24 June 2016|date=2 May 2016}} approximately {{convert|31|km|0}} southwest of Hoima, the nearest large city and location of the district headquarters.{{cite web|access-date=24 June 2016 |date=24 June 2016 |publisher=Globefeed.com |author=Globefeed.com | url=http://distancecalculator.globefeed.com/Uganda_Distance_Result.asp?fromplace=Kiswaza%20Primary%20School%2C%20Hoima%2C%20Western%20Region%2C%20Uganda&toplace=Hoima%2C%20Western%20Region%2C%20Uganda%2C&dt1=ChIJ1b5ehfmUZBcRK_ie9a6YNvI&dt2=ChIJJfeZtKfEZBcR7aOKo9_8RYc |title=Distance between Kiswaza Primary School, Hoima District, Western Region, Uganda and Hoima, Western Region, Uganda}} The sugar plantation was partially established on a large section of the Bugoma Forest, a critical habitat for the Uganda mangabey and home to an estimated 550 chimpanzees. The coordinates of the factory are 1°15'09.0"N, 31°11'36.0"E (Latitude:1.252490; Longitude:31.193326).{{google maps|access-date=24 June 2016 |url=https://www.google.com/maps/place/1%C2%B015'09.0%22N+31%C2%B011'36.0%22E/@1.2491556,31.1885254,973m/data=!3m1!1e3!4m5!3m4!1s0x0:0x0!8m2!3d1.25249!4d31.193326 |title=Location of Hoima Sugar Limited}}

Social and environmental concerns

= Forced evictions =

In 2013, Hoima Sugar Limited forcibly evicted approximately 6,000 individuals from 1,300 acres in Kijayo, Buhaguzi County, Kikuube District, to establish a sugar plantation. These evictions displaced indigenous communities, including the Bakiga, Banyoro, and some Alur people, leaving them without compensation and forcing them into internally displaced persons' camps.[https://www.albertinewatchdog.org/2019/03/29/the-500-households-evicted-by-hoima-sugar-company-limited-are-helpless/ The 500 households evicted by Hoima Sugar Limited are helpless], Albertine Watchdog, March 2019

Despite legal actions taken by the affected individuals seeking compensation for lost property and human rights violations, many continue to live in poor conditions without adequate support. As of 2019, reports indicated that some residents received as little as 30,000 Ugandan Shillings (approximately USD 8) per acre as compensation, which is insufficient for resettlement.

The evictions have led to significant humanitarian challenges, including lack of access to clean water, healthcare, and education. The displaced families reside in makeshift shelters with inadequate sanitation, contributing to health issues such as malnutrition and disease outbreaks.[https://www.albertinewatchdog.org/2019/05/22/the-community-in-kijayo-evicted-by-hoima-sugar-limited-drinking-polluted-water/ The community in Kijayo evicted by Hoima Sugar Limited drinking polluted water], Albertine Watchdog, May 2019

In 2017, allegations emerged that local police forces were complicit in the forced evictions. Hoima District Police Commander Bernard Akankwasa was accused of deploying officers to assist Hoima Sugar Limited in expelling families from their land, despite a 2014 court order prohibiting such actions. Reports indicate that during these evictions, an infant died due to excessive use of force by the police.[https://observer.ug/news/police-boss-in-trouble-over-illegal-evictions/ Police boss in trouble over illegal evictions], The Observer, September 2017

These events have drawn criticism from human rights organizations, highlighting the ongoing struggles of displaced communities in Uganda due to large-scale agribusiness operations.[https://www.hlrn.org/violation.php?id=p21paKg= Hoima Sugar Ltd], Housing and Land Rights Network

= Deforestation =

File:Bugoma_forest.png, showing the area deforested by Hoima Sugar Limited for sugarcane plantation (2020–2023).]]

Between 2020 and 2023, approximately {{units|57|u=km2}} (14% of its original area) of the Bugoma Forest was degazetted by the National Environment Management Authority (NEMA) and cleared for sugarcane plantations by Hoima Sugar Limited.[https://www.pmldaily.com/news/2023/04/ugandas-158sq-bugoma-forest-succumbs-to-sugar-factory-agriculture.html Uganda's 158sq Bugoma forest succumbs to sugar factory, agriculture], PML Daily, April 2023[https://www.globalforestwatch.org/map/ Global Forest Watch]

In August 2020, NEMA granted an Environmental and Social Impact Assessment (ESIA) certificate to Hoima Sugar Limited for a project that included a sugarcane plantation, an eco-tourism site, and an urban center.[https://banksandbiodiversity.org/case_study/hoima-sugar-limiteds-sugarcane-plantation-in-ugandas-bugoma-forest/ Hoima Sugar Limited's sugarcane plantation in Uganda's Bugoma Forest], Banks and Biodiversity, 2023 However, subsequent inspections revealed that the company had violated the approval conditions by deforesting protected areas and sites designated for eco-tourism. In September 2022, NEMA ordered Hoima Sugar Limited to halt further deforestation in these areas and to restore the degraded sections of Bugoma Forest.[https://www.newvision.co.ug/category/news/hoima-sugar-ordered-to-restore-depleted-part-144476 Hoima Sugar ordered to restore depleted part of Bugoma Forest], New Vision, September 2022

The deforestation of Bugoma Forest has had significant environmental impacts, including the loss of habitat for approximately 500 chimpanzees and other endangered species. Additionally, it has disrupted the livelihoods of local communities that rely on the forest for resources.[https://news.mongabay.com/2020/11/uganda-environment-authority-greenlights-clearing-of-bugoma-forest/ Uganda environment authority greenlights clearing of Bugoma Forest], Mongabay, November 2020

Environmental organizations and civil society groups have condemned NEMA's decision and Hoima Sugar Limited's activities, arguing that the destruction of Bugoma Forest for sugarcane cultivation poses serious threats to biodiversity and contributes to climate change.[https://www.business-humanrights.org/en/latest-news/uganda-environment-appeal-granting-forest-reserve-to-hoima-sugar-say-move-will-exacerbate-climate-change/ Uganda: Environmental appeal against granting Bugoma Forest Reserve to Hoima Sugar], Business & Human Rights Resource Centre, 2023

Overview

The company is a medium-sized sugar manufacturer, established in 2016, with production capacity of 1,500 metric tonnes daily. The factory had signed up 450 out-growers as at May 2016, with that number expected to grow to 2,000 by 2017. The total work force at the company is projected to grow to 5,000, once all systems are operational. A thermal power co-generation facility is planned. The total investment is calculated at US$42 million.{{cite web|

url=http://www.statehouse.go.ug/media/news/2016/05/02/president-calls-adoption-commercial-agriculture|title=President calls for adoption of commercial agriculture|date=2 May 2016 |author=Presidential Press Unit | publisher=Uganda State House |location=Entebbe|accessdate=24 June 2016}}

Ownership

The business is owned by Rai Holdings.{{cite web| url=http://ugandaradionetwork.com/story/president-museveni-launches-new-hoima-sugar-factory |title=President Museveni Launches New Hoima Sugar Factory| date=2 May 2016 |accessdate=24 June 2016| publisher=Uganda Radio Network |first=Fredrick |last=Kivabulaya |location=Kampala}} The family-owned group has a 70 percent shareholding in Kinyara Sugar Works in neighboring Masindi District and also owns West Kenya Sugar Limited, and Sukari Industries both in Kenya.{{cite web|author=Nation Reporter| url=http://www.nation.co.ke/business/Why-sugar-miller-Rai-is-set-to-be-on-many-lips/-/996/2682578/-/i6ykaf/-/index.html|title=Why sugar miller Rai is set to be on many lips|date=11 April 2015|accessdate=24 June 2016 |

newspaper=Daily Nation |location=Nairobi}}