TADB upbeat to support sugar production

TANZANIA Agricultural Development Bank (TADB) financing to the sugar sub sector will help in realising the country’s ambitious target of becoming self-sufficient in sugar production.

The TADB’s Board Chairman Mr Ishmael Kasekwa said during their visits to the green field of Bagamoyo Sugar Limited at the weekend that the initiative will reduce and in the long-run stop sugar imports.

“The TADB financial support to the sugar industry will ultimately save the country from sugar import dependency, attain self-sufficiency and produce a surplus for exports,” he said.

He said through the financial support from TADB, the green field of Bagamoyo Sugar Limited has started by adding up 18,000 tonnes of sugar into the local market in its first year of production which commenced in June this year thus gradually cutting down the 30,000 tonnes of sugar gap that the country is currently facing.

The TADB’s Board of Directors said during their visits to the factory in Bagamoyo, Coast Region that the board was impressed by the pace of the implementation of the project and the achievement it had registered.

“Our multi-billion-shilling support to Bagamoyo Sugar is very much in-line with our mandate which is to promote sugar self-sufficiency and security.

We are very confident that this new player is going to significantly contribute to solving the sugar gap crisis which has been facing the country for many years,” he said.

The Firm’s Deputy Chief Executive Officer, Mr Said Nassor told TADB board members that the project which kicked off in 2018 was going as scheduled adding that in phase one of the implementation the factory will produce a total of 30,000 tonnes of sugar.

“Everything is going as scheduled. We started our commercial production in June this year and so far we have already produced a total of 14,000 tonnes and by the end of the season, we will hit 18,000 tonnes. In phase one of this project, the plan is to produce 30,000 tonnes of sugar by 2023,” he said.

He further elaborated that the main objective of the project was not only reducing dependence on sugar imports and attaining self-sufficiency but also producing surplus sugar for export.

The deputy CEO expressed his appreciation to TABD for the multi-billion-shilling financial support that the bank directed into the project adding that it could be hard to achieve the milestone achieved if it was not for the bank’s support.

According to the Sugar Board of Tanzania, the country’s demand for sugar currently sits at 645,000 tonnes per year, whereas 440,000 tonnes is consumed in normal households while the remaining 205,000 tonnes is utilised in industries.

For the 2020/2021 season, a total of 46,000 tonnes of sugar was imported, while 50,010 tonnes were also imported for the 2021/2022 season respectively.

According to the Sugar Board, import projections for the 2022/23 season are estimated at 30,000 tonnes which is a drastic decline in anticipating the contribution that Bagamoyo Sugar will make to the market this season.

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