Finance minister Matia Kasaija has revealed that government is in advanced stages of advancing a loan of US$ 12.5 Million (about 45 billion shillings) to Dr. Hersi Amina Morghe, the Kenyan investor who is building a multi-billion shillings sugar factory in Atiak Sub County in Amuru district.
Minister Kasaija explained that government came in to rescue Dr. Hersi Amina Morghe after she failed to clear huge loans she had borrowed from Crane Bank which was taken over by Bank of Uganda and sold to DfCu.
Kasaija said Dr Amina had surrendered some of her assets as collaterals to the banks but had failed to clear the loans.
Speaking at Gem village, Atiak Sub County in Amuru district on Friday, the finance Minister said the government is supporting Amina to clear her loans, procure equipment and machines for the sugar works factory and support outgrowers.
There are already 4,750 outgrowers with 14,000 acres of sugar plantation in Atiak. Kasaija said the government had sold off its share in Kinyara Sugar Works Limited and will advance US$ 5.2 Million (about 23 billion Uganda shillings) to support outgrowers at Atiak Sugar.
Some of the needed money to be disbursed to Amina, the finance minister said, will come from NUSAF3 and NAADs.
Amina,54, is a Kenyan of Somali origin thanked the government for coming to her rescue and compared President Museveni to ‘‘God’’.
The sugar investor revealed that once her factory starts production it will boost the economy.
Amina has twice pushed forward the date when the factory will start full production as works stalled due to financial challenges that almost lead to the auctioning of her factory.
The factory is set to be launched in June 2018.
Trading under her Horyal Investment Holding Company Limited, the company has 15,000 acres of land for the sugarcane growing in Pacilo, Atiak Sub County in Amuru.
Anthony Akol, the Member of Parliament (MP) for Kilak North County welcomed the government plan to rescue the factory from financial stress.
MP Akol who is also the shadow Minister of Finance explained that once the factory starts full production, it will widen government’s tax base and contribute towards achieving middle income status by 2020.
Akol, however warned that tax payers’ money should not be abused by those in high offices in the name of supporting investing.
1 Comment
Whya call her an Investor when all we are seeing is Money Laundering. I front a company, I grab land, use it as collateral to borrow money then default. Cry to presidential half brother and half Somali Saleh and BOOM money flows from tax payers. Africa do not need such “INVESTORS”. This is a recipe for poverty. There was drought all over Uganda, how much sugar was used to feed the hungry?
Who are the shareholders here?
17,000 acres is too large for a mere factory. Let us do the calculus. What would such a factory need to break even (Cash flow and years to recover costs of Fixed Assets invested) and start making profits. Now Al shabbab are imported into the furthest reaches of the villages – why did we go into Somalia again?