Kilombero sugar’s US$281.16M expansion to double production by mid-2025
TANZANIA – The Kilombero Sugar expansion project, backed by a Tsh 732 billion (US$281.16M) investment, is set to double production capacity by mid-2025.
The K4 Mills project in the Morogoro Region, now 95 percent complete, will significantly increase output and help reduce Tanzania’s sugar deficit.
Kilombero Sugar Managing Director Guy Williams told the Parliamentary Committee on Industry, Trade, Agriculture, and Livestock that the project will boost sugar production from 127,000 to 271,000 tonnes annually.
He emphasized that the expansion will create additional employment opportunities across the value chain, with 60 percent of the total sugarcane crushed at the K4 Mills coming from out-growers, while the remaining 40 percent will be sourced from the company’s estate farms.
Committee Chairman Deodatus Mwanyika said the government remains committed to fostering strategic investments that align with Tanzania’s Vision 2025 goals.
“This is a great example of a productive investment that will drive national economic growth and improve the livelihoods of sugarcane farmers while also addressing the sugar deficit in the country,” he said.
Mwanyika also commended Kilombero Sugar for strengthening the industrial and agricultural sectors through its expansion efforts.
Kilombero Sugar Chairman Amb. Ami Mpungwe described the investment as historic and a major milestone for the sugar industry in Eastern and Central Africa.
“This underscores our commitment as a business toward the country’s vision of self-sufficiency in sugar by 2025,” Mpungwe stated.
The project will also enhance energy production, supplying up to 10MW of electricity to the national grid.
Additionally, the production season will be reduced from 42 weeks to 32 weeks to optimize the rainfall period. Grower cane supply is expected to increase from 600,000 to 1,500,000 tonnes annually.
Tanzania, East Africa’s third-largest sugar producer, is striving to achieve self-sufficiency in sugar production by 2027.
Local production has risen significantly, reaching 460,200 tonnes in 2023, up from 300,000 tonnes in 2015. The government aims to further increase output to 706,000 tonnes annually by 2025-2026.
Efforts by local producers, including the Bagamoyo Sugar Factory, are also contributing to this goal. The factory’s expansion is expected to raise its annual output by 20,000 tonnes, bringing total production to 100,000 tonnes.
In January, Tanzania’s National Food Reserve Agency (NFRA) announced plans to begin sugar imports within two months following directives from the Sugar Board of Tanzania (SBT).
The imports aim to establish buffer stocks, stabilize supply, and prevent price fluctuations.
The NFRA plans to import at least 92,000 tonnes of sugar under regulatory supervision while also sourcing from domestic producers to ensure market stability.
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