Kampala: Revival of Lira Spinning Mills is seen as a key driver for economic growth in the Lango sub-region, as highlighted by Oyam County North Member of Parliament, Hon. Eunice Otuko. She emphasized the significance of this initiative in promoting agro-industrialisation, creating employment opportunities, adding value to local products, and stimulating regional economic growth.
According to African Press Organization, Eunice Otuko addressed the Committee on Tourism, Trade and Industry, stressing that the dormancy of Lira Spinning Mills over the past 40 years has adversely affected employment and deprived cotton farmers of a stable and valuable domestic market. The mill, once a thriving entity in Lango, was initially established to process Ugandan-grown cotton, but farmers now face limited opportunities for value addition.
Eunice Otuko noted that revitalizing the spinning mill could provide employment to up to 7,000 unemployed youth and women in Lira City and nearby districts. Moreover, the revival aligns with the Buy Uganda, Build Uganda (BUBU) framework, enhancing domestic production capacity in light of the new restrictions on second-hand clothing imports under the External Trade (Amendment) Act, 2026.
The legislation imposes a 30 percent environmental levy on imported second-hand clothing. Otuko shared insights from an engagement with the Uganda Investment Authority, revealing that the government requires US$58 million to establish a modern spinning mill through government recapitalisation or a public-private partnership.
A comprehensive assessment of the Lira Spinning Mills' current status and investment needs is necessary, Otuko proposed, suggesting mobilization of funds through the Uganda Development Corporation in alignment with public finance laws. The committee members expressed support, recognizing the potential for economic transformation for Ugandans.
Hon. Abraham Isamat from Kapir County highlighted the historical reliance on cotton production in the Teso sub-region, lamenting the lack of value-addition facilities, which has slowed sector progress. He pointed out the potential for cotton cultivation in Northern Uganda, given the availability of vast land.
Sironko District Woman Representative, Hon. Asha Mafabi, emphasized that the cotton mill's development should be complemented with food production initiatives to benefit locals through agriculture for both sustenance and commercial purposes. The committee is reviewing the proposal following a motion presented by Eunice Otuko in July 2026.