Uganda PM Approves Clearing of
Rainforest for Sugarcane Plantation

TIM COCKS / Reuters 21mar2007

s	In Africa

KAMPALA — Uganda's prime minister has approved a plan for thousands of hectares of a rainforest nature reserve to be replaced by a sugarcane plantation, the state-owned New Vision daily said on Wednesday.

Government officials told Reuters they were not aware of Prime Minister Apolo Nsibambi's decision to give part of Mabira Forest — one of the east African country's last remaining patches of natural forest — to a local sugar company.

The government's own paper cited a letter from Nsibambi to Environment Minister Maria Mutagamba.

"I direct you to bring a Cabinet paper seeking permission to degazette part of Mabira for sugarcane growing," the paper quoted the letter dated March 1 as saying.

Last year, President Yoweri Museveni ordered a study into the possibility of axing 7,000 hectares (17,000 acres) or nearly a third of Mabira Forest, which has been a nature reserve since 1932, to expand the sugar estate of the private Mehta Group.

The proposal outraged some parliamentarians and residents. They said the environmental costs of razing the forest would far exceed the economic benefits of the plantation.

Environmentalists say destroying Mabira could have grave ecological consequences, sparking soil erosion, drying up rivers and rainfall, and removing a buffer against pollution of Lake Victoria.

They say it would also threaten monkeys and nine species found only in Mabira and surrounding forests — the Tit Hylia bird, six butterflies, a moth and the ajua shrub, used to treat malaria.

Nsibambi and Mutagamba were unavailable for comment on Wednesday's report. Mutagamba's deputy, State Minister for Water Jennifer Namuyangu, said she was unaware of the move.

Once a cabinet paper is prepared, cabinet can quickly approve a plan and then hand it over to parliament for a vote.

"Once it has reached the level of the prime minister writing letters to the environment minister, it is de facto that cabinet has approved it," New Vision political correspondent, Geresom Musamali, told Reuters.

Mehta Group regional director Suresh Sharma said the company could not yet comment.

Last year, the head of the National Forest Authority (NFA), Olav Bjella, resigned on Museveni's request over his refusal to grant a licence for Kenyan palm oil company Bidco to remove a rainforest on an island in Lake Victoria.

The new NFA boss Baguma Isoke told Reuters he had no authority to block land giveaways which were up to parliament.

source: 21mar2007

About the Mehta Group

From Mehta Group website

Aged thirteen and armed with little more than dreams, a spirit of adventure and a determination to succeed, the founder, Nanji Kalidas Mehta left his native land in a country vessel, bound for the distant shores of Africa. The year was 1900 and the unit of currency used for trading with the local tribes was Cowrie Shells!

From such humble but dramatic origins has sprung The Mehta Group.

Today, controlling assets in excess of US $350 million and with over 15,000 employees worldwide, The Mehta Group is a multinational, multi-activity enterprise with a global presence spanning four continents viz. Asia, Europe, North America and Africa.

source: http://www.mehtagroup.com/thegroup.htm 21mar2007

HISTORY OF THE GROUP

1900-1930 Development of industries in Uganda: tea plantation, ginnery, sugarcane plantation, sugar factory.

1930-1940 Having established in East Africa, beginning of operations in India. Textile mill and ginning factory set up in Porbandar(Gujarat) and trading company in Bombay.

1950-1960 Cement plant (Saurashtra Cement Limited) established in 1956 70s & 80s This decade represents a great turning point in the history of the Group:

1972 Expulsion of Asians by Idi Amin in 1972 Consultancy wing in India and plastics unit set up in Canada Expansion of Group in terms of size, value and geographical spread.

1979: Recalled to Uganda

80s & 90s Active period for Agrima Consultancy wing - consultancy to Ethiopia, Cameroon, Sudan, Burundi, Nigeria and in Asia to Nepal,Sri Lanka and Myanmar. Rehabilitation of all Ugandan companies. 2nd cement plant put up - Gujarat Sidhee Cement Limited, formerly Cement Corporation of Gujarat Limited

90s -00s Successful foray into the field of finance and banking with the establishment of Transafrica Assurance Company Limited. Modernisation and expansion of cement plants in India.

source: http://www.mehtagroup.com/history.htm 21mar2007

The Sugar Corporation of Uganda Limited plays a key role in the development of the Ugandan economy. It is one of the leading quality producers of Sugar, which is an essential commodity. The corporation gainfully employs more than 7300 people directly and is amongst the largest employers in East Africa.

The Company's complex at Lugazi, spread across nearly 10,000 hectares, is one of the "showpiece" projects of East Africa. A totally integrated unit that grows sugarcane, manufactures white sugar, and converts the molasses byproduct into industrial alcohol. The corporation owns and operates the only distillery in Uganda.

The Company’s employee welfare measures are exemplary. A large, well-planned and constructed township provides its employees with not just housing, but power, drinking water, a hospital, schools and a dairy. Regular in-house training programs are conducted to upgrade skills and selected employees are sent for higher training to leading institutions in Uganda, as well as overseas. The company believes that it is involved in a "mission" in Uganda to help accelerate the nation's economic development. And towards this end, it is now involved in a variety of new efforts.

One, of course, is the ongoing process of improving the productivity of the Lugazi sugar plant. But, beyond this, the company is involved in a variety of diversification moves. Of these, the most innovative and successful has been the floriculture project. The company grows five hectares of roses under scientific greenhouse conditions. It also grows jasmines and tuberoses for the European and West Asian markets. Other corporate diversification moves are in the areas of horticulture - producing vanilla and essential oils for exports - as well as particle board manufacture, potable alcohol manufacture, seed farming, agribusiness and co-generation of power. Through all these efforts, the company seeks to help the country by earning vital foreign exchange, and meeting the growing demand at home.

source: http://www.mehtagroup.com/sugar.htm 21mar2007