Madhvani Group: Hrishikesa Madhvani Shares his Assessment of the Sugar Industry in Uganda
Hrishikesa Madhvani, Managing Director of Madhvani Group, one of the largest diversified private-sector groups in East Africa, shares his assessment of the sugar industry in Uganda.
Hrishikesa Madhvani, Managing Director of Madhvani Group, one of the largest diversified private-sector groups in East Africa, shares his assessment of the sugar industry in Uganda.
“Our link to the sugar industry goes back a long time. We started to grow sugar in the 1930s as a family. Before that, we were in agriculture in the coffee sector. As a family, we have seen the sugar industry grow from its grassroots all the way up to the 1970s. Unfortunately, the disruption caused by Idi Amin had a rather disastrous effect on the sugar industry then, completely destroying it together with the country’s economy as a whole. In the space of ten short years, the entire country was ground to a standstill. Remarkably, after the departure of Idi Amin, Uganda flourished once again and economic growth and stability was brought back. Particularly at the beginning of the 90s, we were very lucky to have leadership that understood the power of free markets and the private sector. So, there was a very positive emphasis on private sector investment which restored confidence in the country and brought about the economic growth that was so desperately needed. That also had a positive effect for us. We saw a growth in the sugar industry and sugar consumption into what it is today. The sugar industry is still trying to keep up with local demand. There is not enough sugar produced in Uganda. It is very expensive to import sugar by road and to a small extent by rail 1000 km from the sea through Kenya passing the border. In that respect, we are fairly insulated from global sugar fluctuations, but not entirely. The sugar price does go up and down and the sugar industry today has about three dominant players. We are proud to say that we are the largest player. There are also a lot of newer, smaller entrants into the market”, says Hrishikesa Madhvani.
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