DODOMA: Tanzania’s President Samia Suluhu Hassan has reaffirmed the government’s support for private investment in the sugar industry as the country seeks to expand domestic production and reduce imports.
Samia made the remarks during a meeting in Dodoma with Paul Kenward, chief executive of ABF Sugar, a subsidiary of the British multinational Associated British Foods.
The company has invested more than 900 billion Tanzanian shillings (about $350 million) in Tanzania’s sugar sector and plans further expansion in irrigation, energy generation and ethanol production.
According to a statement from the presidency, a new sugar processing facility being developed by the company is expected to begin commercial production in June following trial operations.
Once operational, the project is projected to raise annual sugar production capacity from around 126,000 tonnes to about 271,000 tonnes, helping Tanzania move closer to self-sufficiency in sugar.
The expansion is also expected to increase the number of out-grower farmers supplying cane to the factory from roughly 8,000 to about 16,000 farmers.
In addition to sugar production, the project will generate about 10 megawatts of electricity for the national grid and expand ethanol manufacturing for industrial use.
ABF Sugar holds a 75% stake in Kilombero Sugar Company, with the Tanzanian government owning the remaining 25%.
Tanzania has been encouraging private investment in agriculture and agro-processing as part of its broader industrialisation strategy and efforts to reduce reliance on imported food products.