Oyam North MP Hon Eunice Apio Otuko Makes Bold Case for Lira Spinning Mill Revival to Create Jobs.
By Okidi Patrick
Parliament: Oyam North Member of Parliament, Dr. Eunice Apio Otuko, has presented a compelling case for the revival of the long-dormant Lira Spinning Mill, arguing that the factory holds the key to unlocking jobs, boosting cotton farming and driving real agro-industrialisation in northern Uganda.
Appearing before the Parliamentary Committee on Tourism, Trade and Industry on Thursday, September 3, 2026, Dr. Otuko said the 40-year dormancy of what was once Lango’s industrial giant has cost the region productive employment and robbed cotton farmers of a reliable, high-value domestic market.
“The once thriving giant of the Lango sub-region has been reduced to a shell. Reviving it is not just about a building; it is about restoring livelihoods,” Dr. Otuko told the committee.
She said bringing the mill back to life would directly support the Buy Uganda, Build Uganda (BUBU) policy and make the newly enacted External Trade (Amendment) Act, 2026 workable. The Act imposes a 30 percent environmental levy on imported second-hand clothes and worn articles, a move aimed at promoting local textile production.
MP says Shs 214bn investment could transform Lango cotton economy
“Reviving Lira Spinning Mill will directly promote the BUBU framework by providing the domestic production capacity required to operationalise the second-hand clothes import restrictions,” Otuku added.
Meanwhile according to Dr. Otuko, engagements with the Uganda Investment Authority (UIA) indicate that government needs US$58 million (about Shs 214 billion) to establish a fully integrated, modern spinning mill through either direct recapitalisation or a public-private partnership.
Hon Otuku urged government to commission a comprehensive technical, financial, legal and commercial assessment to establish the current structural status of the mill and its exact investment needs.
“The required financing can be mobilised through the Uganda Development Corporation (UDC) in strict compliance with public finance laws,” she proposed.
The proposal has attracted support from across the political divide. Committee members said the revival would accelerate Uganda’s transition into a money economy.
MP. Abraham Isamat (NRM, Kapir County) said Teso, which once thrived on cotton, has suffered because of the lack of value-addition facilities.
“We still have ginneries where cotton can be stored, but government is concentrating more on coffee, which has taken time to be embraced in Teso. There is vast land in Northern Uganda and if this idea is processed, farmers will swing back into cotton growing,” Isamat said.
Sironko District Woman Representative, Hon. Asha Mafabi, said the Lira cotton project should be complemented with food production to ensure locals benefit from both commercial and food security agriculture.
The committee is now considering the proposal following a motion tabled by Dr. Otuko in July 2026, seeking government action to revive the factory.
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