Why Tanzania–TPC partnership matters after 25 years of impact

DAR ES SALAAM: TWENTY-FIVE years ago, the government, through the Office of the Treasury Registrar (OTR), made a bold decision to privatise TPC Limited, transferring 75 per cent of its shares to Sukari Investment Limited under the Miwa Group of Mauritius while retaining 25 per cent.

The move was designed to unlock potential and create a platform where public oversight and private sector efficiency could work hand in hand to deliver sustainable progress.

Today, the results speak for themselves. From a struggling state-owned enterprise, TPC has grown into one of Africa’s leading sugar producers and a model of successful public–private partnership.

Within this context of strong performance, Treasury Registrar Mr Nehemiah Mchechu noted during the Silver Jubilee Gala on November 19th, 2025 that TPC’s growth reflects the broader impact of well-structured partnerships and the government’s commitment to driving industrial transformation.

To place TPC’s contribution in a national context, the Director General of the Sugar Board of Tanzania (SBT), Prof Kenneth Bengesi, told the Treasury Registrar’s Corner yesterday (Wednesday) that national sugar production for the 2024/2025 season stands at 453,382.56 tonnes.

Out of this, TPC contributes 112,855 tonnes—ranking third after Kagera Sugar (140,484.62 tonnes) and Kilombero Sugar (105,310 tonnes).

Other producers include Mtibwa Sugar Estate (51,082.89 tonnes), Mkulazi Holding Company (19,124.01 tonnes), Bagamoyo Sugar (16,556.89 tonnes), and Manyara Sugar The company has also earned national recognition, including the Presidential Trophy for Exemplary Performance and the Presidential Award for Environmental Conservation.

Building on this foundation of excellence, Mr Mchechu noted that the launch of construction for the TPC Distillery marks another significant milestone in the partnership’s progress.

“The new distillery will be a game-changer. It will diversify products, create new revenue streams, generate and save foreign exchange and strengthen Tanzania’s industrialisation agenda,” he underscored.

He added that this level of progress reflects the broader strength of the partnership, which has also delivered consistent financial returns to the Government.

TPC paid dividends for four consecutive years— from 2016 to 2019—leading all government minority investments during that period.

In 2023 alone, the government received a record 16.5bn/- in dividends. Beyond dividends, the company contributes approximately 74bn/- annually in taxes and levies, supporting public services and national development priorities.

The company directly and indirectly employs more than 4,000 Tanzanians, and its social investments in education, health and infrastructure have positively impacted communities across Kilimanjaro and beyond.

While Mr Mchechu represented the government’s oversight role, Kilimanjaro Regional Commissioner (RC) Nurdin Babu shared the regional perspective, acknowledging TPC’s contributions to local development.

“For decades, TPC has been more than a sugar company; it has served as a key partner of the government, a strong contributor to regional development, and an economic pillar in Kilimanjaro and Manyara Regions,” he said.

He went on to add: “Through TPC’s operations, the Moshi District Council’s Service Levy has increased from 45m/- to 650m/- annually, significantly improving service delivery.”

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RC Babu also highlighted the company’s community impact through Corporate Social Responsibility (CSR) initiatives.

“Through the FTK Foundation, TPC’s CSR budget has grown from 30m/- in 2005 to 1.4bn/- in 2025, enabling strategic investments in schools, health facilities and local infrastructure,” he asserted.

Adding: “The new distillery project will generate high-quality ethanol, fertiliser and clean energy, creating jobs, expanding revenues and boosting industrial competitiveness.”

TPC Distillery Limited is jointly owned by TPC Limited and the government of Tanzania, through the OTR, which together hold 85 per cent of the shares, while Isautier Drinks Africa owns the remaining 15 per cent.

This shareholding structure was deliberately designed to combine strong local anchor investment, government oversight and international technical expertise to drive competitiveness in the regional and global market.

Building on this partnership, Mr Stephane Isautier, TPC Board Chairman and CEO of the Miwa Group, said the entry of Isautier Drinks Africa with its 15 per cent stake enhances the distillery’s technical capacity and expands market opportunities.

“We are proud of what has been achieved, and we remain committed to advancing both business and social objectives hand in hand with the Government of Tanzania,” he said.

Adding: “Our investments over the past 25 years have been guided by a longterm commitment to operational excellence, sustainable growth and community empowerment.”

He went further to expound that the distillery project is a tangible expression of their ambition to diversify products, innovate responsibly and support Tanzania’s industrialisation goals.

Building on the shareholder and investment perspectives, TPC Limited CEO Mr Marius Jacobs brought the conversation to the operational front, highlighting how the partnership has shaped the company’s day-to-day performance and long-term competitiveness.

“Over the past 25 years, TPC has evolved into one of Africa’s most efficient sugar producers, thanks to the strong partnership with the government and strategic investors,” he said.

He noted that the newly launched distillery represents a major step in TPC’s growth journey.

“The new distillery allows us to diversify our product portfolio, expand renewable energy production and enhance the value of agricultural outputs, directly benefiting Tanzanian farmers.”

Mr Jacobs added that TPC’s vision extends beyond industrial output.

“Our commitment goes beyond business; through education, health and infrastructure projects, we aim to create lasting positive impacts for the communities hosting our operations,” he insisted.

His remarks underscored the company’s broader social and developmental footprint in the Kilimanjaro Region and across the country.

As these reflections showed throughout the Silver Jubilee Gala, the Tanzania– TPC partnership has grown into a strong example of how public oversight and private sector expertise can jointly advance national priorities.

●Prepared by Office of the Treasury Registrar.