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List of Boxes Box 1: Out-growers production and earnings with SCOUL 20 Box 2: SCOUL sets terms to abandon Mabira CFR 23 Box 3: SCOUL Sugar Corporation Press release summarised 27 Box 4: Kabaka Land Offer Not a Donation – Govt 27 Box5: Land Resource values 28 xii The Economic Valuation of the Proposed Degazettement of Mabira CFR | 2011
1.0. INTRODUCTION 1.1. BACKGROUND The Government of Uganda received and tabled for discussion a proposal to expand sugar production by the Sugar Corporation of Uganda Limited (SCOUL) in 2007. The key elements of the proposal were to expand the acreage under sugar cane by the corporation by 7,100 hactares within the Mabira Central Forest Reserve. The proposed expansion would however have to be preceded by the degazettement of the affected area to pave way for private use by the Sugar Corporation of Uganda Limited. The proposal sparked off a lot of controversy, with the key contentions centred on the clear need to conserve biodiversity and the permanent forest estate, notwithstanding the equally important need to expand sugar production to benefit from the large local, regional and international sugar commodity market. Mabira Central Forest Reserve was gazetted as a central forest reserve in 1900 under the famous Buganda agreement between the British Colonizers and the Buganda Kingdom. The reserve is found in Buikwe and Mukono Districts in Central Uganda and covers an area of 306 Km 2 across an altitudinal range of 1070 – 1340 m above sea level. The forest reserve is currently the largest natural high forest in the Lake Victoria crescent. The Sugar Corporation of Uganda Limited on the other hand is a limited liability company jointly owned by the Mehta Family (76%) and the Government of Uganda (24%). Increased sugar production by the corporation should therefore, in theory benefit both the Mehta Family as majority shareholders and Ugandans as minority shareholders. The converse is also true that a degradation to the value of SCOUL affects both the Mehta family and Ugandans. The Sugar Corporation of Uganda Limited argues and as published in the press (The Monitor Newspaper, 2007; New Vision News Paper, 2007; East African News Paper, 2007): that the allocation of an additional 7,186 ha out of Mabira Central Forest Reserve will: 1. Increase sugar production and save foreign exchange of US$ 20 – 25m per annum. 2. Enable the generation of an additional 1-12 MW of electricity which can be supplied to the national grid and onward to a number of industries in and around Lugazi Town. 3. Create an additional 3,500 jobs with an annual earning of Shs 3 billion. 4. Lead to the development of additional infrastructure investments (schools, houses, dispensaries) worth Shs. 3.5 billion; 5. Require the development of 300 km of road in the newly allotted areas, an investment of Shs. The Economic Valuation of the Proposed Degazettement of Mabira CFR | 2011 1 2bn. 6. Generate additional taxes in the form of value added tax (VAT), Excise Duty, pay as you earn (PAYE) and import duty in the range of Shs. 11.5m (per year). 7. Enable the production of ethyl alcohol which can be blended with petrol to the extent of 10-15%, to form gasohol, an alternative vehicle fuel. 8. Commit SCOUL and the Government of Uganda not to develop any more areas near the banks of River Nile and the shores of Lake Victoria and hence preserve the ecology of the rest of Mabira CFR. 9. Commit SCOUL to participate in tree planting on those areas which are not suitable for sugarcane production.
Page 1: THE ECONOMIC VALUATION OF THE PROPO
Page 4 and 5: THE ECONOMIC VALUATION OF THE PROPO
Page 6 and 7: ACRONYMS AND ABBREVIATIONS SCOUL Su
Page 8 and 9: for in the National Forestry and Tr
Page 10 and 11: 5.0. THE CONSERVATION OPTION 31 5.1
Page 14 and 15: The pro-conservation groups who are
Page 16 and 17: Figure 1: Map of Mabira CFR showing
Page 18 and 19: The Economic Valuation of the Propo
Page 20 and 21: which include schist’s, phyllites
Page 22 and 23: Wattled Starling(Creatophora cinere
Page 24 and 25: Restricted-range butterflies record
Page 26 and 27: The demand for sugar has also been
Page 28 and 29: Table 7: Projected sugarcane produc
Page 32 and 33: 4.2. THE VALUE OF THE SUGAR SECTOR
Page 34 and 35: 4.3. COST OF PRODUCTION AND THE DET
Page 36 and 37: additional sugarcane they need from
Page 38 and 39: Table 11: Estimate sugar estate lan
Page 40 and 41: ) Opportunity of SCOUL leasing land
Page 42 and 43: then the government goes ahead and
Page 44 and 45: expected from the environment (Lett
Page 46 and 47: Table 15: Example of links between
Page 48 and 49: PVB = PVC = Where: 36 ∑ = t n t =
Page 50 and 51: Table 16: Value of Growing Stock Cl
Page 52 and 53: ased on household livelihoods. Bush
Page 54 and 55: 12,078 per annum by the number of h
Page 56 and 57: part of the area proposed for degaz
Page 60 and 61: to mature. Subsequently, conservati
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REFERENCES Adger, N., Brown, K., Ca
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Multinational enterprises in the pl
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Primates of Africa. The IUCN Red Da
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Edinburgh University, Scotland. Sim
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ANNEXES ANNEX 1 BIODIVERSITY DATA T
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Family Species Family Species Rutac
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Family Species Family Species Morac
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Table A2: Species list of birds rec
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Britton No. Species Common Name 467
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Table A3: Species list of Mammals (
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Table A4: Amphibians of Mabira Fore
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Tirumala petiverana African Blue Ti
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ANNEX 2 INVENTORY DATA Table III Ma
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Fig AI Icut id nonsimu sperurbitiac
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