- Tanzania Sugar -Output increases.
- New factory lancering to bridge the demand gap.
- President Samia insists on sustainability in the sector.
The Tanzania sugar industry experiences growth, where production is approaching that self-supply is approaching, but there is still a gap between domestic demand and production. According to the sector authorities, the annual sugar question of the country is more than 600,000 tons, while production is approaching, but it is still not entirely there.
“The government has a goal to increase production by the end of 2025 to 756,000 tons to meet both local and industrial needs and for export,” reads a press release that is shared during a recent opening of another sugar factory.
The factory lancering was honored by President Samia Suluhu Hassan, who officially opened the multi-billionaire Sugar Factory in the Mbigiri estate in the Kilosa district, the Morogoro region.
In her comments about Tanzania’s Sugar industry, the president admitted that there is what she described as ‘historical failures of factories run by the government’, adding that there is a need for ‘careful management to ensure the success and sustainability of the factory’.
President Samia called on the project manager to supervise the “diligent and responsible manner, and caused strict compliance with factory policy, laws and regulations.”
“This project must be sustainable … ignore all external interference and maintain our standards. Flexibility is crucial, but the integrity of the factory is paramount for the benefit of the nation,” the president ordered.
Moreover, she warned; “If this project fails, you will fail. Success is yours to share,” said President Samia who quoted former Ethiopian leader Meles Zenawi. “It is important for the factory to guarantee safety in the workplace by offering protective equipment and health insurance for all employees,” the president advised.
She also insisted on planting trees to protect the environment both inside and outside the factory.
Mkulazi Sugar Factory is the result of strategic partnership between the National Social Security Fund (NSSF) and the Prisons Corporation Sole (PCS). Together, the two funds have formed the Mkulazi Holding Company Limited (MHCL) with important investments in sugar production in an attempt to expand the Tanzania sugar industry.
The company is mainly owned by the National Savings Scheme, NSSF, which has a 96 percent interest, while PCS has the remaining 4 percent, explains the press release.
According to the Repo, Mkulazi Sugar Factory has an annual production objective of 50,000 tons. Unlike sugar production, Mkulazi wants to produce bioethanol, particle boards and pulp.
“We have to work together to guarantee its success. It is crucial for national production and must work regardless of any changes. If a factory in the government, it should not be influenced by fluctuations of the private sector,” the president maintained.
“We experienced a small sugar shortage when heavy rainfall took place at the beginning of this year and sugar was potted, so that the prices shot up. With such factories, regardless of the weather, we can ensure a steady offer without conflicts,” the president added.
With reference to bottlenecks of investments, President Samia promised that the government would revise the loan limit policy for local investors, which is currently impeding domestic investments.
For his part, MHCL CEO Selestine said some that Mkulazi Sugar Factory could produce 50,000 tons annually, including brown sugar for household consumption and refined industrial sugar.
“The factory can also generate 15 megawatt electricity, with 7 megawatts that are used internally and 8 megawatts on the national schedule,” detailed.
“We agree with Tanesco, signed all contracts and completed the construction of the power transmission line to MSAMVU station,” he revealed.
According to the CEO, the construction of the factory started in July 2021 and was completed in November 2023. “The production officially started in July of this year after three months of tests. The factory can produce 200 to 300 tons of sugar per day,” he has further detailed.
He said that the company has sugar cane plantations for 4,856 hectares, with 3,600 hectares dedicated to reed cultivation and he said so far, 3,380 hectares have been cultivated.
What is more, “the factory sources of sugar cane of 304 out growers in Mbigiri, where 900 hectares are cultivated, which can produce 30,754 tonnes of sugar cane, to buy by the factory in the 2024/2025 season,” he described.
For his part, Minister of State, the office of the Prime Minister (labor, youth, employment and people with disabilities), Ridhiwani Kikwete remembered that President Samia authorized the construction of the factory shortly after her inauguration.
He said that the government financed the project and allowed the PCs to deliver land for the investment. “This construction has contributed to reducing the unemployment of youth, with 92 percent of the 2,176 formal and more than 7,000 informal jobs created in the factory, all occupied by Tanzanian youth under 45,” Kikwete revealed.
Secreting Kikwete, Minister of Agriculture Hussein Bashe said that the Sugar Board of Tanzania (SBT) is currently re -seeing regulations to protect the factory and reduce the import of 50,000 tons of industrial sugar.
“The regulations will be ready by June next year,” detailed.
To finish it, said Industry and Trade Minister Dr. Selemani Jafo that the new factory complements on existing Planta in Kilombero, Kagera, Mtibwa and Bagamoyo, and together they will considerably stimulate Tanzania sugar production.
According to him, this expansion is expected to meet the national demand of 802,000 tons, consisting of 250,000 tons for industrial use and 552,000 tons for household consumption.
In particular, leading sugar producers in Tanzania with capacity in brackets are the Kilombero Sugar Company Limited (116,495 tons), Tanganyika Planting Company Limited. (101,226), Kagera Sugar Limited (50.207), Mtibwa Sugar Estates Limited, Production figures not available.
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Overview of the Sugar Industry Tanzania Sugaria
The production of the sugar of Tanzania is increasing, with the aim of achieving 756,000 tons by the end of 2025 this according to the Ministry of Agriculture. The government is actively involved in stimulating industry and has set up various initiatives, including the renewal of existing factories and encouraging farmers to cultivate more stick.
According to the Ministry of Agriculture, Tanzania, while production is increasing, is still on importing to meet the growing domestic demand.
Large sugar producers in Tanzania include Kilombero Sugar Company, Tanganyika Planting Company (TPC), Kagera Sugar, Mtibwa Sugar Estates and Bagamoyo Sugar Factory and now the Mkulazi factory is set.
In particular, with the growing demand, the Tanzania sugar industry attracts new investments, with projects such as the investment of $ 240 million in Kilombero Sugar Company to expand its production capacity.
“The general goal is to reach self -supply in sugar production and possibly to become an exporter,” President Samia said recently.
However, challenges remain. The Tanzania sugar industry stands for challenges such as fluctuating prices, there are also increasing concern about fair competition and the need to guarantee a consistent range of affordable sugar.
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