Oyam County North Member of Parliament, Hon. Eunice Otuko says the revival of Lira Spinning Mills is key for the promotion of agro-industrialisation, creation of employment, value addition and stimulating economic growth in Lango.
Appearing before the Committee on Tourism, Trade and Industry on Thursday, 03 September 2026, Eunice Otuko said the dormancy of Lira Spinning Mills for the last 40 years has negatively impacted productive employment and deprived cotton farmers of a stable domestic and high-value market.
“The once thriving giant of Lango sub-region was established as a strategic national asset designed to consume Ugandan grown cotton. However, cotton farmers across Northern and Eastern Uganda now sell their cotton with little to no-value addition,” Eunice Otuko said.
Eunice Otuko added that revitalisation of the spinning mill is a vital economic necessity to absorb up to 7,000 unemployed youth and women in Lira City and neighbouring districts.
“Reviving Lira Spinning Mills will directly promote the Buy Uganda, Build Uganda (BUBU) framework, by providing the domestic production capacity required to operationalise the second-hand clothes import restrictions under the newly enacted External Trade (Amendment) Act, 2026,” she said.
The law imposes a 30 per cent environmental levy on imported second-hand clothing and worn articles.
She stated that an engagement with Uganda Investment Authority revealed that government will require US$58 million to establish a fully integrated, modern spinning mill under structured government recapitalisation or a public-private partnership model.
“Government needs to undertake a comprehensive technical, financial, legal, and commercial assessment of Lira Spinning Mills to establish its current structural status and investment requirements. The required financing can be mobilised through Uganda Development Corporation in strict compliance with public finance laws,” she proposed.
Committee members welcomed the proposal noting that it will accelerate the move into the money economy for many Ugandans.
Hon. Abraham Isamat (NRM, Kapir County) said Teso sub-region previously relied on cotton production but added that, lack of factories to support value-addition has slowed the progress of the sector.
“We still have ginneries where cotton can be stored, but government is concentrating more on coffee production which has taken time to be embraced in Teso. There is also vast land in Northern Uganda and if this idea is processed, they will swing into cotton growing,” Isamat said.
Sironko District Woman Representative, Hon. Asha Mafabi proposed that development of the cotton mill in Lira should be complimented with food production, saying locals in the region will benefit from agriculture for food and commercial production.
The committee is considering the proposal following a motion tabled in the House by Eunice Otuko on July 2026.
Distributed by APO Group on behalf of Parliament of the Republic of Uganda.
