Kilombero Sugar Company, a subsidiary of Illovo Sugar Africa, is planning to build a new factory as it increases acreage of farms under its operation in Morogoro region, Tanzania.
The company is also targeting to increase sugar production from 126,000 tonnes to 250,000 tonnes per year. The new factory is expected to process 2.5 million tonnes of sugar cane from the current 1.2 million tonnes.
Sugar in Tanzania comes from four companies -- Kilombero Sugar (KSC), Mtibwa, Kagera and TPC, a unit of Mauritius sugar producer Alteo. The four produce 320,000 tonnes of sugar per year, leaving an estimated gap of 100,000 tonnes.
According to KSC executive director Guy Williams, the new sugar factory is banking on the company's investment in sugarcane farming under its special programme to attract outgrowers.
"We are looking to support the government's industrialisation drive and ensure that Tanzania produces sugar that will meet domestic consumption needs," Mr Williams said.
The Minister for Agriculture, Livestock and Fisheries, Charles Tizeba, had advised Illovo Sugar to expand sugar production to fill the deficit of 200,000 tonnes. Illovo Sugar is the biggest producer of sugar in Tanzania.
Tanzania's Prisons Department partnered with the National Social Security Fund and the PPF Pension Fund to revive Mbigiri sugar factory and Mkulazi sugar farm in Morogoro region, aiming to produce 30,000 tonnes of sugar per year.
Tanzania aims to raise sugar production by about 31 per cent over the next four years. The country imports industrial sugar from Brazil, Thailand and other southeast Asian countries.
The government had set aside 294,000 hectares to be allocated to companies looking to develop sugarcane plantations. Companies from Oman have been invited to invest in sugar production in Tanzania.