Refurbished factories to raise sugar production in Tanzania

Sugar production in Tanzania could rise by four per cent in the 2009/2010 crop season due to expansion of many factories. 

Mathew Kombe, director general of the Tanzania Sugar Board, said in Dar es Salaam last week that the country could produce 290,000 tonnes of sugar, compared with 279,851 tonnes, this season. 

Mr Kombe said most of the produce in the 2008/2009 season was consumed locally while the rest was exported to the region.  

He said the increasing acreage under sugar cane, and better yield per hectare, would raise output of the crop.  

There are four main sugar companies in Tanzania: Mtibwa, Kagera, Kilombero and the Moshi-based TPC. 

The four have a total production capacity of 400,000 tonnes annually. The country also has smaller factories like Manyara, which produces 2,000 tonnes annually.

Statistics from the Ministry of Industry, Trade and Marketing, say about 40,000 hectares are under sugarcane. The industry employs over 40,000 people directly.

The Sugar Board said it was surveying land in the east of the country and plans to add 8,000 hectares, set up a factory and enlist another 8,000 hectares from out growers later.

The country will invite investors for a greenfield investment once the encroachment, valuation and processing of title deeds are complete.

The sugar sector is also examining possibilities of generating electricity for sale to the state-run Tanzania Electric Supply Company.

Some factories already produce power, but for their own consumption.  

Among the impediments the sector faces is illegal importation to cover the annual shortfall of about 100,000 tonnes.

The sugar is smuggled through the country’s porous borders and possibly through the ports.

In the just ended season, there was enough illegal sugar in the market to fill the sugar deficit.

Swedish biofuels firm Sekab, which wants to set up a 100 million litre a year plant, had started a seedling field, but other investment plans are on hold for now.