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State promises to protect local sugar industries

The government is committed to protect investors and sugar factories by creating a good environment of doing businesses

DODOMA: THE government is committed to protect investors and sugar factories by creating a good environment of investing and doing businesses while considering the welfare of majority Tanzanians.

Minister of State in the President’s Office (Planning and Investment), Professor Kitila Mkumbo told the National Assembly yesterday that the government is devoted to protect investments in the country and that a number of reforms have been made to achieve the goal.

The Minister was responding to some of the MPs concerns when winding up the debate on the National Development Plan 2024/25 in the House yesterday.

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He rubbished claims that the government was not doing enough to promote local sugar producers and that the measures taken aim at dwindling production and killing industries.

Prof Mkumbo said the government has invested heavily in the sector, saying so far 7.2bn/- has already been allocated for production of sugarcane seedlings that are distributed to sugarcane growers in various parts of the country.

He added that the government has also allocated 12.5bn/- for irrigation infrastructure in sugar cane farms in Kilimanjaro region.

He added that a feasibility study for irrigation project is being conducted in Kilombero, Morogoro region by an Ethiopian based company.

Prof Mkumbo informed the House that the government has also exempted 244bn/- tax on sugar factories across the country, purposely to enable them operate profitably and enable them to produce more sugar.

“The government has been doing all these to promote sugar production and protect our local factories, therefore it is very disturbing when a person accuses the government of weakening local producers, this is lacking the understanding of matters,” he noted.

He added that the investment on sugar industries is heavy and that the government value their importance in producing sugar and in contributing greatly to the country’s economic growth.

“The investment in sugar industries across the country is worth 4.2tri/-, this is a huge investment, therefore killing this business means the government is sabotaging itself, which is impossible,” said Prof Mkumbo.

He reiterated the government stand that it is committed to protect investors and production in the country.

Also Read: ‘NFRA’s plan to import sugar counterproductive’

However, he noted that the government will also stand firm to protect the citizens from being exploited and mistreated under the umbrella of free market policy.

He said: “Earlier, the government provided sugar importation licenses to local sugar producers, but last year we learnt our lesson after something went wrong, from that experience we have decided to come up with intervention measures to curb this problem in future,” he noted.

Prof Mkumbo told MPs that the government plan is to end the so called ‘sugar gap’.

On Monday, MPs overwhelmingly supported the government’s proposal to give the National Food Reserve Agency (NFRA) the authority to buy and store sugar to end recurrent price spikes.

Agriculture minister Hussein Bashe tabled the proposal last month when he presented his docket’s Sh1.249 trillion budget for 2024/25 in Parliament.

Since it required amendment of the law governing NFRA, the proposal is contained in the Finance Bill, 2024, which MPs debated last Monday.

Mr Bashe informed Parliament that the sugar factories entrusted with importing the sweetener to cover for the shortfall in local production did not fulfil their responsibilities effectively.

Prof Mkumbo said for any country to record economic growth, there must be a development plan.

He said in 1960s, the founding father of the nation, Mwalimu Julius Nyerere formed the planning and development department which operated under his office.

He said through development plans that have been tabled every financial year, the government has managed to record huge achievements in various sectors such as water, health, infrastructure, education, energy and many others.