TPC Limited has unveiled a major investment of $52 million (Sh130 billion) aimed at transforming Tanzania’s sugar industry by upgrading the sugarcane value chain and expanding into ethanol and technical alcohol production, reports The Citizen.
The announcement was made yesterday by TPC Chief Executive Officer Jaffari Ally, ahead of today’s foundation stone ceremony in Arusha Chini, Moshi District. Ally said the project marks a shift from selling raw molasses to processing it into multiple products that will create jobs, increase government revenue, and strengthen the economy through industrial output, alternative energy, and locally sourced raw materials.
Construction of the new facility is 30 per cent complete, with 70 per cent of the required materials already delivered. The project is expected to be completed by December 2026. Once finished, it is set to raise farmer productivity, boost company income, and enhance national earnings.
After commissioning, TPC will produce 16.3 million litres of Extra Neutral Alcohol (ethanol) each year, positioning it among the country’s largest distilleries. The company will also manufacture 400,000 litres of technical alcohol annually for use in energy-saving cooking stoves, helping reduce reliance on firewood and charcoal.
Ally added that the plant will generate 8,000 tonnes of potassium fertiliser from molasses by-products, suitable for chemical-free farming, along with 400,000 litres of carbon dioxide for industrial applications, particularly in beverage factories.
The project also features a new power plant capable of producing six megawatts of electricity, increasing TPC’s supply to TANESCO from the current 2–3 MW to 7 MW. According to Ally, this expansion will boost employment, tax revenue, and support the government’s goals for clean energy and industrial development.
The foundation stone will be laid by the Kilimanjaro Regional Commissioner, marking 25 years of cooperation between the Tanzanian government and Sukari Investment Limited under a public-private partnership. Registrar of the Treasury Nehemia Mchechu is expected to highlight the achievements of this long-standing collaboration.
TPC workers’ representative Bilali Mchomvu said the new plant will raise production levels, improve competitiveness, and create around 1,800 jobs, benefiting young people and nearby communities. He noted that as the company’s profits grow, salaries and employment opportunities will also rise.
Former Moshi Urban MP Priscus Tarimo welcomed the investment, describing it as a forward-looking model for Tanzania’s industrial sector. He said domestic production of fertiliser and alcohol will reduce import dependence, save foreign exchange, increase tax revenue, and offer affordable inputs for farmers.
Since 2000, when the government sold 75 per cent of its TPC shares to Sukari Investment, sugar production has increased from 36,000 tonnes to 120,000 tonnes a year. Government revenue from the company has risen from Sh2 billion to Sh97 billion, while sugarcane yield has improved—from 66 tonnes per hectare to 150 tonnes—making TPC one of Africa’s most productive plantations and among the top three globally.
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