TPC Limited Keen to Support Economic Growth

Moshi based sugar manufacturing company TPC Limited has continued to be the key stakeholder that contribute and support the...

government endeavours to boost economic growth.

The company through various contributions including taxes, dividends, employment creation and sugar farm plantations has played significant role in improving people's living standards.

For example, last year paid 14.5bn/- dividend to the government being an increase from 13.5bn/- and 12bn/- paid 2017/18 and 2016/17 financial years, respectively.

The government owns 25 per cent stakes at the TPC Limited entered into partnership with Sukari Investment Limited (SIL) from Mauritius in the year 2000 that has 75 per cent shares. SIL is owned by two companies including Alteo Limited from Mauritius by 60 per cent and GQF Teros ya Re union by 40 per cent.

The TPC Corporate Affairs Executive officer, Jaffari Ally said recently that the sugar company is not only supporting the efforts to increase sugar production in the country but also one of top contributor of government revenue.

The current annual capacity of the sugar company 100,000 tonnes with plans underway to expand sugarcane farms to meet the target of producing 120,000 tonnes of sugar annually. The company produces sugar cane at an average of 140 tonnes per hectare, which is the highest rate in Africa and third in the world.

"The company's outstanding performance is a result of huge investment in sugarcane farms including modern irrigation and farming systems, high tech factory machines," he said. For example, the company makes use of high tech computer machines to apply fertilisers that help in putting accurate measure.

Mr Ally said the size of land cultivated is 8,000 hectares and 7,500 harvested and due to the modern farming technology applied, the company harvests over one million tonnes of sugarcane annually. Apart from seasonal rains available at an average between 600mm to 700mm the company forced to apply irrigation system by 100 per cent that guarantee high yields of sugarcane.

Sugarcane farming requires a minimum of 1,200mm of rainfall. TPC Limited is one of the top job creators that employs over 1,900 on a permanent basis and an additional 1,100 seasonal workers while also providing 1,000 jobs through outsourced services.

As one of the biggest tax payers in the country, TPC paid 70bn/- in the 2018/19 financial year compared to 66.6bn/- in 2017/18, 66.3bn/- in 2016/17 and 50.4bn/- in 2015/16.

This made the sugar producer to scoop three awards from the Tanzania Revenue Authority (TRA) as one of the best tax payers who comply with tax payment procedures. In the same vein, TPC paid has been paying various fees and charges to Moshi Municipal Council amounting to 576.3m/- in 2018/19, 504.2m/- in 2017/18, 459.2m/- in 2016/17 and 358.8m/- in 2015/16.

TPC Limited was established in the early 1930's by a company which was registered in Denmark in the name of Tanganyika Planting Company Limited and later registered in Tanzania as TPC Limited on June 29, 1973 and the shareholders remained the same, namely Meers A.P.Moller of Denmark.

Sugar cane was first harvested at Arusha Chini in lower Moshi area in 1936, during which 4,000 tonnes of sugar were produced and later production gradually increased every year reaching the highest level in 1974/75 crop season when 50,978 tonnes of sugar were produced.

In March 2000, Sugar Investment Company Limited, which is registered in Mauritius, purchased 75 per cent of shares of TPC Limited and became the majority shareholder of the company, while the government retained the remaining 25 per cent shares.

Located within the Pangani valley, sugar farming depends on various water sources by almost 60 per cent and the company has invested heavily on drilling deep wells that guarantee availability of water for irrigation throughout the year.

TPC also generate 17.5 megawatts of electricity using remains after sugarcanes are crushed sugar juice. The electricity is used to pump water from the deep wells for irrigation, for factory use and to the employees' residents. The remaining electricity generated of about 4 to 5 megawatts is transferred to the national grid.

The electricity generated at TPC is more than that from Hale and Nyumba ya Mungu hydroelectric dams. "The electricity generated from the remains of crushed sugarcane is environmental friendly compared to other sources," he noted.

Also the increased sugar factory productivity is linked with the good relations between the management and employees. The TPC and employees have signed better work environment at different times aimed at improving and maintaining positive work relations between them.

Apart from paying salaries to its employees, the company also has since 2007 being paying dividend totalling 17.5bn/- during the whole reference period. To support the government initiative to provide free education, TPC through its corporate social responsibility set aside 450m/- for sponsorship of students in secondary schools and higher learning institutions.

He said TPC has built two nursery schools, five primary schools and two secondary schools for its employees. It also provides transport, infrastructure, exercise books, food and school uniforms to the employees' children. Also the factory provides for free basic services to its employees including health, water, housing and education.