- Samia optimistic transformative investments will fix recurring shortage
MOROGORO: THE government has assured citizens that the ongoing expansion projects of sugar factories in the country will significantly contribute to self-sufficiency upon their full operations.
Speaking during the foundation laying ceremony of Kilombero Sugar Company’s factory expansion project in Morogoro Region yesterday, President Dr Samia Suluhu Hassan expressed her optimism at the transformative investment to address recurring sugar shortage.
The shortage has in most cases forced the country to import the product and spending a lot of foreign currency that could otherwise be spent on other activities.
“The expansion of this factory has overarching gains including safeguarding our foreign currency, which could be spent for importation of sugars to address its shortage. The transformative investments also assure us of realising sugar self-sufficiency,” she said.
Adding “With all the ongoing expansions combined by next year they can considerably contain the sugar gap.”
President Samia lauded the board and management of the Kilombero Sugar Company’s decision of undertaking the expansion project in bid to increasing sugar production from the current 127,000 tonnes to about 272,000 tonnes.
She noted that the Kilombero Sugar Company’s expansion project worth 292 million US dollar (about 800bn/-) as of today has reached 83 per cent to completion.
She said the project is scheduled to be completed in June 2025 in which, she accepted the invitation formerly made by the Kilombero Sugar Company’s Board Chairman, Ambassador Ami Mpungwe for inaugurating the new plant.
She said similar expansion projects are also taking place in other sugar producing firms in the country including Mkulazi Holding Company, Mtibwa Sugar Estates, saying all together target at ensuring Tanzania attains self-sugar sufficiency.
Dr Samia said such transformative expansion projects will substantially save foreign currencies which could be spent to import sugar in circumstance of shortage.
Hence, she directed the Minister for Agriculture, Mr Hussein Bashe and the Minister for Industry and Trade, Dr Selemani Jafo to continue creating favourable environment for growth of local sugar industries in the country, saying she was confident that they can do better to contain the sugar gap.
More significantly, she said the sugar firms can play critical role on production of Ethanol for clean cooking, bolstering the transition to greener energy.
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Earlier, Kilombero Sugar Company’s Board Chairman, Amb Mpungwe said the expansion project which kicked off in 2021 aligns with the sixth phase government’s improvement of business environment including policies which win investors’ trust to diversify production.
He commended President Dr Samia for gracing the foundation laying ceremony, saying her presence at the event underlined the government’s unwavering commitment on uplifting local industries in the sugar sub-sector.
For his part, Treasury Registrar, Mr Nehemia Mchechu said that the Kilombero Sugar Company’s expansion project after being operational can produce 50 per cent of the country’s sugar demand.
He noted that the company is owned by the government by 25 per cent and 75 per cent by the Illovo Sugar Africa Group, a private owner.
Mr Mchechu said presently the company provides over 4,500 direct jobs and 25,000 indirect ones, hinting that the expansion is going to generate new employment opportunities.
According to him, so far the ongoing expansion has cost a total of 194 million US dollar (about 470bn/-).
In another development, President Samia visited the Ifakara Substation worth over 20bn/- meant at strengthening availability of electricity in three districts namely Kilombero, Ulanga and Malinyi.
