Sugar boom as ‘The 2Ks’ resume production

CHRISTOPHER MAJALIWA in Dodoma

Minister of Industry, Trade and Investment Mr Charles Mwijage

TANZANIANS have been assured of sufficient sugar as Kagera Sugar Limited (KSL) resumed production on Monday while the Kilombero Sugar Company Limited is expected to commence operation today.

Kagera Sugar produces 250 tonnes of the sweetener per day while Kilombero, in full swing, will be producing 600 tonnes daily, the Minister for Trade, Industry and Investment, Mr Charles Mwijage, has confirmed. He made the assurance in the House on Monday evening when debating the budget estimates for the Ministry of Lands, Housing and Human Settlements Development.

Daily demand for sugar stands at 1,200 tonnes, according to Mr Mwijage. He said that over 10,000 tonnes of commodity consignment, which arrived early this month, is currently being distributed to various parts of the country.

Mr Mwijage directed sugar dealers to report to the regional and district commissioners on the distribution’s progress in a move aimed at finding out if the traders were selling the sweetener to the retail outlets as per government’s directives.

He was responding to Mr Abdallah Mtolea (Temeke-CUF), who claimed that the price of sugar in many parts of the country has surpassed the ceiling, urging the government to issue a statement on sugar availability in the country.

Mr Mwijage noted that the government was taking a number of initiatives, including facilitating domestic companies to increase production to ensure that the country has sufficient sugar supply.

He informed the House that KSL was eyeing increased production in the near future -- from the current 60,000 tonnes to 120,000 tonnes per annum. The current annual demand of the commodity is 420,000 tonnes while local factories are able to produce only 320,000 tonnes.

The minister also revealed that an investor from Oman is also set to enter into a contract with KSL, in which about 300,000 tonnes of sugar are expected to be produced from the joint venture.

According to Mr Mwijage, a foreign investor has also landed in the newly-formed Songwe Region and is set to start a sugarcane plantation. It is expected that 120,000 tonnes of sugarcane will be harvested. He noted that the Tanzania Investment Centre (TIC) has allocated 500,900 acres of land for agricultural activities, including sugarcane plantation, during 2016/17.