Agriculture: Kenya vs Tanzania

Agriculture: Kenya vs Tanzania

Local sugar production gap set to narrow more​



SUNDAY MAY 23 2021​

Sugar production pic

Farm workers observe sugar growing. Tanzania is set to add at least 80,000 tonnes of sugar come next year following the start of production at two of recently established factories. Country’s domestic production stand at 470,000 tonnes while demand is 635,000 tonnes. PHOTO | FILE

Summary

  • 80,000 tonnes will be added early next year as two factories are set to commence production this year.

By Louis Kalumbia
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Dodoma. Tanzania’s local sugar production is gathering pace to meet its demand with the government saying that more 80,000 tonnes will be added early next year as two factories are set to commence production this year.

One of the two factories is Bakhresa’s Bagamoyo Sugar with a 70,000-tonne installation capacity, but it is expected to start production in June 2021 at a starting production capacity of 30,000 tonnes.

The other factory is the Mkulazi II Project implemented in Morogoro Region that has a production capacity of 50,000 tonnes per year with expectations to start production in December 2021.

Requesting Parliament to approve Sh105.670 billion for 2021/22 Fiscal Year, the minister for Industry and Trade, Prof Kitila Mkumbo, said in May, this year the second company will start constructing facilities for the factory with production anticipated to commence in December this year.

“The government is putting more efforts in attracting investment in sugar production with most projects showing positive developments,” said Prof Mkumbo. He said Kilombero Sugar has invested $239 million for expansion of the factory which is expected to start in the 2021/22 Fiscal Year and be completed in the next three years. “Completion of the project will enable the company to increase its annual sugar production from 125,000 tonnes to 271,000 tonnes,” he said. He added, “The expansion will also increase utilization of cane from small scale producers from 600,000 tonnes to 1.450 million tonnes per year.”

The former University of Dar es Salaam (Udsm) don said the Manyara Sugar factory has also increased its sugar cane processing capacity from 50 tonnes to 750 tonnes per day.

Furthermore, he said reaching April 2021, about 26,871.28 tonnes of sugar had been stored in warehouses, including 12,214.95 tonnes preserved in a warehouse belonging to the sugar producers and 14,656.33 tonnes owned and preserved by sugar traders.

“However, in order to ensure the country meets its sugar demands, the government, through the Sugar Board of Tanzania (SBT), permitted sugar producers to import 40,000 tonnes of the product in order to close the deficit gap in the 2020/21 season,” he said.

He said Tanzania has five sugar factories with a collective capacity of producing 462,863 tonnes as compared to 635,000 tonnes demanded (470,000 domestic and 165,000 industrial sugar).

The five sugar factories include; the Kilombero Sugar I and II; Mtibwa Sugar Limited; Kagera Sugar Limited; TPC Moshi as well as the medium sized Manyara Sugar Company Limited.

 

Kilombero Sugar plant expansion in Tanzania begins in June​

By
CCE NEWS TEAM
-
June 2, 2021

Kilombero Sugar plant expansion in Tanzania begins in June


Kilombero Sugar Company, in which Illovo Sugar Africa has a 75% shareholding and the Government of the United Republic of Tanzania a 25% shareholding, submitted this past 18 May, the award of the Kilombero Sugar Company’s Plant Expansion project in Tanzania.

The construction phase of the project starts in June 2021 and is expected to last 29 months.

The investment in the expansion project is the largest to date by British Sugar across the African continent. Kilombero’s shareholder, Illovo Sugar Africa, Gavin Dalgleish, said: “We are extremely proud to partner with the people of Tanzania, this is a historic investment aimed at reducing the amount of sugar that must be imported into the country each year to meet consumer demand.”

This new project consolidates TSK’s presence on the African continent, as well as its leadership in the sugar sector.

 








MY TAKE
$150,000 mbona ndogo? Jamaa wamekosea ni $150 mln worthy of investment in Tanzania and more is coming!


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