Atiak Sugar Factory
A Ugandan sugar manufacturing company and agricultural-development project serving northern Uganda.
Last updated August 25, 2026
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Overview
Atiak Sugar Factory, formally Atiak Sugar Factory Limited and also known as Atiak Sugar Limited, is a sugar manufacturing company in northern Uganda. Its factory and headquarters are in Gem Village, Pachilo Parish, Atiak sub-county, within Kilak County of Amuru District. The site is approximately 17 kilometres north of Atiak town and about 69 kilometres north of Gulu, the principal urban centre of northern Uganda. The project was established to develop commercial sugar production in a region where agricultural recovery and employment creation have been important economic priorities. Its operating model combines factory processing with sugarcane cultivation and an out-grower network. The company was reported to have contracted more than 5,000 cane growers, while planned factory and agricultural activities were expected to create more than 1,500 jobs. Atiak has also worked with the Gulu Women Entrepreneurs Association Limited, reflecting an intended connection between the factory project and wider enterprise development in northern Uganda. The factory was designed to crush approximately 1,650 tonnes of raw sugarcane per day and produce about 66,000 tonnes of refined sugar annually. Its industrial design also includes a bagasse-based electricity co-generation facility, initially planned at 6 megawatts with a possible expansion to 27 megawatts. A later development target contemplated increasing cane-crushing capacity to approximately 3,500 tonnes per day. Sugarnpower Projects Private Limited of India was identified as the supervising engineering company. Construction and commissioning experienced repeated delays. Initial expectations placed commissioning in 2016, with sugar distribution planned for 2017. In 2017, the Ugandan government extended a credit facility of US$17.4 million to Horyal Investments Holding Company Limited, the project's owner, to assist with construction completion, machinery procurement, support for cane out-growers, and restructuring of existing financing. Completion estimates subsequently moved through 2019 and 2020. Construction was reported to be about 70 percent complete in July 2018, and commercial production was reported as expected to begin in August 2020. Ownership has included both private and state participation. Horyal Investment Holding Company Limited is associated with Kenyan entrepreneur Amina Moghe Hersi. Uganda Development Corporation, the state investment vehicle, acquired a 10.1 percent interest in May 2018 after investing USh20 billion, and its stake was reported to have risen to 32 percent after a further USh45 billion investment in July 2018. A request for an additional USh24 billion in 2019 would have increased the government's shareholding to 44 percent. Ugandan media later reported in September 2023 that Horyal held 51 percent and Uganda Development Corporation held 49 percent. Production was temporarily halted in March 2022 because the factory lacked sufficient sugarcane supplies. Reports indicated that the interruption could extend until late 2024 or 2025 while additional cane was developed. Proposed recovery measures included irrigation, mechanization, land preparation, planting, weeding, harvesting, and cane collection. Uganda's Parliament approved USh108 billion during the 2022/2023 financial year for irrigation infrastructure and machinery intended to strengthen the agricultural supply base. The available reference material does not establish whether the factory has since resumed sustained commercial production, so its current operating status remains uncertain.
History
Atiak Sugar Factory is a northern Ugandan agro-industrial project developed to manufacture sugar from locally grown sugarcane. The enterprise is located in Gem Village, in Atiak sub-county of Amuru District, a region north of Gulu. Its location places the factory within a broader effort to expand industrial activity, agricultural markets, and employment in northern Uganda. The project was planned around an integrated supply model. In addition to operating a sugar mill, the company was expected to cultivate cane and purchase cane from a substantial out-grower base. More than 5,000 out-growers were reported as having contracts or relationships with the project, while employment projections exceeded 1,500 positions. The company also established a working relationship with the Gulu Women Entrepreneurs Association Limited, linking the factory to local enterprise-development objectives. Engineering and construction were supervised by Sugarnpower Projects Private Limited of India. The proposed facility was designed to crush 1,650 tonnes of raw cane per day and produce approximately 66,000 tonnes of powdered sugar annually. The design incorporated electricity co-generation using industrial by-products, with an initial generating capacity of 6 megawatts and a possible future capacity of 27 megawatts. Longer-term plans also contemplated increasing daily cane-crushing capacity to 3,500 tonnes. The commissioning schedule changed several times. An initial commissioning expectation was associated with 2016, followed by a plan to distribute the first sugar in 2017. In July 2017, the Ugandan government provided a US$17.4 million credit facility to Horyal Investments Holding Company Limited. The facility was intended to help finish construction, acquire machinery, assist sugarcane out-growers, and restructure debt obligations with DFCU Bank. The expected commissioning date was subsequently moved to 2019. Construction remained incomplete during 2018. In July of that year, the project was described as approximately 70 percent complete. Reported investment at that point included approximately USh272 billion from Amina Moghe Hersi and USh65 billion from Uganda Development Corporation. In 2019, the company sought additional government support for offices and staff housing, with completion and opening discussed for the second half of that year. Further reports in 2019 and 2020 placed completion in the first quarter of 2020 and commissioning in April 2020, while a July 2020 report indicated that commercial production might begin in August. State participation developed alongside construction. Uganda Development Corporation acquired 10.1 percent of Atiak Sugar Factory in May 2018 through a USh20 billion investment. A further reported USh45 billion investment in July 2018 raised the corporation's interest to 32 percent. In 2019, the company requested another USh24 billion, which would have increased the government's share to 44 percent. By September 2023, Ugandan media reported a 51 percent holding for Horyal Investments and a 49 percent holding for Uganda Development Corporation. The project's major operational difficulty has been the availability of sugarcane. In March 2022, the factory temporarily stopped sugar production because its cane supply was inadequate. Although the interruption was initially characterized as temporary, subsequent projections suggested that a meaningful restart could depend on cane production improvements extending into late 2024 or 2025. Proposed measures included irrigation and mechanization across land clearing, planting, weeding, harvesting, and collection. Parliament approved USh108 billion in the 2022/2023 financial year for these purposes. The supplied references do not confirm whether those measures restored continuous commercial production, leaving the company's present operating status uncertain.
- 2023
Irrigation and mechanization program funded
[1]Parliament approved USh108 billion for irrigation, machinery, and mechanized cane-farming activities intended to strengthen future production.
- 2022
Production suspended over cane shortages
[1]Sugar production was temporarily halted because the factory did not have enough sugarcane to maintain operations.
- 2020
Commercial production target
[1]Commercial production was reported as targeted for August 2020 after several revisions to the commissioning schedule.
- 2018
State investment reaches 32 percent
[1]After a second reported investment, Uganda Development Corporation's ownership stake rose from 10.1 percent to 32 percent.
- 2017
Government credit support
[1]Uganda extended a US$17.4 million credit facility to Horyal Investments to support construction completion, machinery procurement, out-growers, and financial restructuring.
- 2016
Initial commissioning target
[1]The factory was initially expected to be commissioned in 2016, with first sugar distribution later planned for 2017.
Products and positioning
A northern Ugandan agro-industrial project combining sugar manufacturing, contracted smallholder cane production, regional employment, and planned electricity co-generation.
Sugar
Refined powdered sugar
The factory's principal planned output is refined powdered sugar made by crushing and processing locally supplied sugarcane. The designed facility was reported to have annual output capacity of approximately 66,000 tonnes, subject to adequate cane supply and operating continuity.
Energy co-generation
Bagasse-based electricity
The factory design includes an electricity co-generation plant using material generated during sugar processing. Initial planned capacity was 6 megawatts, with an expansion path to 27 megawatts. The references describe this as a planned capability rather than confirming sustained generation.
Agricultural processing
Sugarcane processing services
Atiak's operating model depends on receiving and crushing sugarcane from company-linked farms and contracted out-growers. The planned daily crushing capacity was 1,650 tonnes, with a longer-term expansion objective of 3,500 tonnes per day.
Marketing campaigns
- Out-grower development program
Northern Uganda
The company developed a contracted sugarcane out-grower network reported to include more than 5,000 farmers, intended to provide raw material for the mill while creating a market for agricultural production.
Outcome. The program was not sufficient to prevent a cane-supply-related production halt in 2022; later irrigation and mechanization measures were proposed.
- Women-led enterprise development partnership
Northern Uganda
Atiak established a working relationship with Gulu Women Entrepreneurs Association Limited as part of the project's wider regional-development and enterprise objectives.
Brand decisions
2022
Shift toward irrigation and mechanized cane productionStrategyBackground
The factory suspended production because its available supply of sugarcane was insufficient.
Action taken
The recovery plan emphasized irrigation and mechanization of land clearing, planting, weeding, harvesting, and cane collection.
Aftermath
Parliament approved funding during the 2022/2023 financial year, but the supplied references do not confirm whether continuous production resumed.
Approved agricultural recovery funding. USh108 billion (2022/2023 financial year)
2018
Increase state ownership through Uganda Development CorporationM&ABackground
The government sought a larger participation in the factory project during the construction phase.
Action taken
Uganda Development Corporation made additional investment reported to have increased its stake to 32 percent.
Aftermath
A later 2019 funding request could have raised the government's interest to 44 percent, while 2023 media reports described a 49 percent state stake.
Additional Uganda Development Corporation investment. 10.1 percent ownership → 32 percent ownership (July 2018)
2017
Use government-backed financing to complete the factoryStrategyBackground
Construction and machinery procurement were incomplete, while the project also needed to support cane growers and manage existing financing obligations.
Action taken
The government extended a US$17.4 million credit facility to Horyal Investments Holding Company Limited.
Aftermath
Commissioning expectations were revised to June 2019, but subsequent reports show that completion continued to be delayed.
Government credit facility. US$17.4 million (July 2017)
Sources1 sources
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