- Samia opens Mkulazi Sugar Factory
MOROGORO : PRESIDENT Samia Suluhu Hassan officially opened the multi-billion Mkulazi Sugar Factory at Mbigiri Estate in Kilosa District, Morogoro Region on Wednesday which is set to boost local production and ensure sustainability.
Admitting the historical failures of government-run factories, she stressed the need for meticulous management to ensure the factory’s success and emphasised the need for the project’s sustainability to benefit the nation.
President Samia instructed the project manager to oversee the project diligently and responsibly, ensuring strict adherence to factory policies, laws and regulations.
“This project must be sustainable,” she said. “Ignore any outside interference and uphold our standards. Flexibility is crucial, but the factory’s integrity is paramount for the nation’s benefit.”
President Samia echoed former Ethiopian leader Meles Zenawi’s accountability stance, telling the project manager, “If this project fails, you fail with it. Success is yours to share.”
A strategic partnership between the National Social Security Fund (NSSF) and the Prisons Corporation Sole (PCS) led to establishment of Mkulazi Holding Company Limited (MHCL) in September 2016 which is tasked with sugar production. The company is predominantly owned by NSSF, which holds a 96 per cent stake, while PCS owns the remaining 4 per cent.
Beyond sugar production, Mkulazi aims to produce bio-ethanol, particle boards and pulp. Their flagship sugar project has an annual production target of 50,000 metric tonnes.
“It is important for the factory to ensure workplace safety by providing protective gear and health insurance for all workers. You should also plant trees to protect the environment both inside and outside the factory.” President Samia said.
She added, “We need to work together to ensure its success. It is crucial for national production and must operate regardless of any changes. As a government-owned factory, it should not be affected by private sector fluctuations.”
President Samia further said that the government would review the loan limit policy for local investors, which currently hinders domestic investment.
“We experienced a minor sugar shortage when heavy rains occurred early this year and sugar was hoarded, causing prices to skyrocket. With factories like this, regardless of the weather, we can ensure a steady supply without conflicts,” she said.
MHCL CEO Selestine Some said the factory could produce 50,000 tonnes annually, including brown sugar for household consumption and refined industrial sugar.
The factory can also generate 15 megawatts of electricity, with 7 megawatts used internally and 8 megawatts supplied to the national grid.
“We have agreed with Tanesco, signed all contracts and completed the construction of the power transmission line to Msamvu substation,” he said.
Mr Some further said construction of the factory began in July 2021, completed in November 2023 and commenced official production in July this year after three months of trials. The factory can produce 200 to 300 tonnes of sugar per day. It also has sugarcane plantations covering 4,856 hectares, with 3,600 hectares dedicated to sugarcane cultivation. So far, 3,380 hectares have been cultivated.
“The factory sources sugarcane from 304 out growers in Mbigiri, cultivating 900 hectares, which can produce 30,754 tonnes of sugarcane, to be purchased by the factory in the 2024/2025 season,” he said.
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During her visit to Morogoro Region, President Samia also toured Mtibwa Sugar and Kilombero Sugar.
Minister for State, Prime Minister’s Office (Labour, Youth, Employment and Persons with Disability), Ridhiwani Kikwete, noted that President Samia authorised the factory’s construction shortly after her inauguration, allocating 344bn/- for the project and allowing the PCS to provide land for the investment.
“This construction has addressed youth unemployment, with 92 per cent of the 2,176 formal and over 7,000 informal jobs created at the factory occupied by Tanzanian youth under 45,” Kikwete stated.
Minister of Agriculture Hussein Bashe said the factory produces industrial sugar and the Sugar Board of Tanzania (SBT) is reviewing regulations to protect the factory and reduce the importation of 50,000 tonnes of industrial sugar. “By June next year, the regulations will be ready.”
Minister for Industry and Trade Dr. Selemani Jafo noted that the new factory, alongside existing facilities in Kilombero, Kagera, Mtibwa and Bagamoyo, will significantly boost Tanzania’s sugar production.
This expansion is expected to meet the national demand of 802,000 tonnes, comprising 250,000 tonnes for industrial use and 552,000 tonnes for household consumption, he said.