Kilombero Sugar Company has approved an Sh571.6 billion expansion project with an aim to double the production. Illovo Sugar Africa holds a 75 per cent stake and the government holds a 25 per cent stake in the company.
The expansion is planned in line with the Tanzania government to achieve self-sufficiency by 2025. The company aims to increase sugar production by 144000 tons annually to 271000 tons per year.
Gavin Dalgleish, Managing director, Illovo Sugar Africa said, “By increasing the sugar production and reducing sugar imports by 144000 tonnes, we expect that the government will save $71 million per year in foreign exchange.”
It is expected that the number of small-scale farmers sending cane to Kilombero will increase from the current 7500 to 14000 or 16000.
The expansion work is likely to be completed by July 2023. It includes the construction of additional sugar storage and packaging provisions and the setting up of an electricity generation plant. The power generated will be supplied to the national grid as well as used for the Kilombero manufacturing complex.