“In addition to doubling our contribution to economic growth, the expansion will create 2000 permanent and 2440 contracted employment opportunities, as well as 10-15MW of electricity generated from renewable fuel available for the Tanzanian grid through a suitable Power Purchase Agreement (PPA) with TANESCO”

29 November 2021: Dodoma — Kilombero Sugar Company Limited (KSCL), in which Illovo Sugar Africa holds 75% of the shareholding and the Government of the United Republic of Tanzania 25%, is set to begin its expansion project which will double the company's contribution to the economic growth from the current 340 billion shillings to an estimated 700 billion shillings per year.

The expansion project that will require an initial new investment of more than 550 billion shillings, includes a new facility that will double the company's sugar processing capacity and reduce sugar shortages in the country through its “Bwana Sukari” brand. This is among the company’s strategies in achieving its vision of reducing the country's reliance on imported products by ensuring self-sufficiency in sugar by 2025.

"The expansion project will raise sugar production from 126,000 tons to 271,000 tons per year thus helping the government to save about seventy million dollars in foreign exchange in sugar imports," says Ephraim Mafuru, Group Head of Sales for Illovo Sugar Africa, while speaking as a panelist at the 20th Conference of Financial Institutions in Dodoma.

The conference themed “Tanzania economy: Recovery from Covid-19 pandemic and beyond” took place at the Jakaya Kikwete Convention Centre from 25 to 26 November, 2021 and was inaugurated by the President of the United Republic of Tanzania, Hon. Samia Hassan Suluhu. It brought together stakeholders to discuss economic growth during and beyond the Covid-19 crisis, with discussions centered on the role of digitalization, digital currencies, as well as the role of government, financial institutions, and private sector in economic recovery. 

"Kilombero Sugar Company is committed to supporting the government's efforts in economic recovery beyond Covid-19. In addition to doubling our contribution to economic growth, the expansion will create 2,000 permanent and 2,440 contracted employment opportunities, as well as producing 10-15MW of electricity generated from renewable fuel available for the Tanzanian grid through a suitable Power Purchase Agreement (PPA) with TANESCO." He stated.

Mr. Mafuru added that the expansion is expected to increase the amount of sugar cane sourced from growers by nearly an additional 1 million tons per year from the current 600,000 tons per year by 2026/27 thus stimulating the development of the agricultural sector and further improvements in development infrastructure and social services in surrounding communities. 

''The advent of COVID-19 has caused major disruptions in economies worldwide. The new facility will therefore be a key enabler in supporting the government's economic recovery strategy, specifically through participation of the private sector in industrialization. We aim to continue contributing to the livelihoods of the communities around us and to the country’s economic growth by increasing growers’ revenue, increasing government’s tax revenues, reducing foreign exchange spending on imports, while creating long-term value for all our stakeholders,” said Mafuru..

 The expansion project is projected to take 25 months to complete, with an estimated completion date of July 2023. The expansion project will benefit a variety of industries, including construction, agriculture, manufacturing, and logistics.

Contact:

Name: Joseph Rugaimukamu

Mobile no: +255 784 386 483

Email address: JRugaimukamu@illovo.co.za

Notes to editors:

• The expansion project was approved by the board in May 2021, and is aligned to the Government’s National Development Agenda which calls for sugar self-sufficiency in the country by 2025. In wake of Covid-19 and post-pandemic economic recovery, the project will have direct impact to the country’s economic recovery.
• Kilombero Sugar Company has made significant investments in the business over the past 20 years, totalling more than $166 million. This has involved various cane and sugar production expansions and the commissioning of a state-of-the-art distillery currently supplying 12 million litres of high-quality alcohol to the local beverage industry.
• Illovo Sugar Africa, which itself is wholly-owned by Associated British Foods in the United Kingdom, holds 75% of the issued share capital in the Kilombero Sugar Company, with the balance of shares (25%) held by the Government of the United Republic of Tanzania. Kilombero is situated in the Morogoro region in the centre/south of the country. It comprises two adjacent agricultural estates and sugar factories, Msolwa and Ruembe, situated on either side of the Great Ruaha River and linked by a low-level bridge. It produces direct consumption brown sugar under the ‘Bwana Sukari’ brand name, which is marketed and distributed by the company.