DODOMA: PRESIDENT Samia Suluhu Hassan has reaffirmed the government commitment to supporting domestic sugar production and maintaining a stable and predictable investment atmosphere that encourage private sector’s participation in key economic sectors.
Dr Samia expressed the government readiness to supporting private investment yesterday during discussions with Group Chief Executive Officer of ABF Sugar, Mr Paul Kenward at the State House in Chamwino, Dodoma yesterday.
According to the statement released yesterday by the Directorate of Presidential Communications, President Samia stressed that partnerships between the government and investors remain essential in advancing Tanzania’s broader development priorities, including industrialisation, job creation, value addition to natural resources and improved livelihoods for rural communities.
President Samia welcomed the continued investment by ABF Sugar Group.
For his part, Mr Kenward informed the president that the group has already invested more than 900bn/- in Tanzania’s sugar industry and plans to continue expanding its investments, including additional commitments in irrigation infrastructure, energy generation and ethanol manufacturing.
He also said that their new sugar factory project is substantially complete, with commercial production expected to commence in June this year following successful trial operations.
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“Once operational, the project is expected to significantly increase domestic sugar production capacity and contribute to Tanzania’s goal of achieving self-sufficiency in sugar,” read the statement.
The expansion is projected to increase annual sugar production from approximately 126,000 tonnes to about 271,000 tonnes, while also expanding the number of out-grower farmers participating in the value chain from 8,000 to around 16,000 farmers.
In addition, the project will contribute to national energy supply through the generation of 10 megawatts of electricity to the national grid, while expanded ethanol production is expected to reduce imports and strengthen the local industrial value chain.
ABF Sugar is part of Associated British Foods Plc, a leading international ingredients and retail group listed on the London Stock Exchange (FTSE 100).
The sugar company has an annual turnover of approximately £3 billion (over 9tri/-) and operates 21 production facilities across nine countries, employing about 35,000 people globally.
In Tanzania, the group jointly owns Kilombero Sugar Company Limited, where it holds 75 per cent of the shares, with the government of Tanzania holding the remaining 25 per cent.
The group also holds 100 per cent ownership of lllovo Distillers Tanzania Limited (IDTL), the country’s largest producer of Extra Neutral Alcohal (EMA), located in Kilombero District. The meeting reaffirmed the shared commitment of the government and ABF Sugar to deepen cooperation in supporting the country’s industrial growth and economic transformation.
Mr Kenward was accompanied by senior executives, namely Ambassador Ami Mpungwe, Board Chairman of Kilombero Sugar Company Limited, Mr Guy Williams, Managing Director and CEQ of Kilombero Sugar Company Limited, and Mr Derick Stanley, Corporate Affairs Director of the company.
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