18 April 2016

Tanzania: Tobacco Processors Complain About Hiked Costs of Power Rationing

TANZANIA Tobacco Processors Limited (TTPL) has said power rationing adds more than 100m/- per month as power costs when they use generators in their industrial activities.

The company's Group Managing Director, Mark Mason, said frequent power outage hinders the development of most industries in the Country. He has requested the government to ensure there is availability of stable power in order to reduce running cost which is caused by the use of generator.

He said TTPL had to use generators which add on the cost of production by more than 100m/- per month. "When we use electricity power from the national grid we pay 173.3m/- per month but the company has to pay 300m/- in generator running costs per month during power rationing," he said.

Mr Mason said power rationing was a challenge to processing companies so the Government has to put efforts in assuring that we are getting reliable power at reasonable price.

He said there had been a high drop of tobacco purchased and processed whereby in 2014 his group bought 48,000 tonnes, while last year (2015) 33,000 tonnes were bought compared to this year's figure of less than 25,000 tonnes.

He said there were stringent requirements for compliance and mandatory long term sustainability programmes such as afforestation, good governance and these are the major challenges to overcome so as to qualify to be a supplier on the global market Tobacco is one of Tanzania's major cash crop with significant contribution to the national economic output, employment, and industrial raw materials.


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