Tanzanian Government calls on investors in sugar production

TANZANIA – The Government has called on local and foreign investors to invest in sugar production in Tanzania as it seeks to meet its demand of for local consumption and industrial use required to generate foreign exchange, reports Daily News.

The Deputy Minister for Agriculture Omar Mgumba said that the country has adequate resources required to meet production and a ready market considering that the country is a net sugar importer.

“We need 105,000 tonnes of sugar for domestic consumption and 155,000 tonnes of industrial sugar.

We have enough land in Rufiji – about 160, 000 hectares and also some good land in Musoma and Malagarasi in Kigoma and other regions that can be used in production,” he said.

He noted that apart from available land for sugar production, there was a reliable market for it, adding that the country has never had a processor that meet the country’s demand.

“We are told that our production cost is high.

In fact, this is similar to many countries, expect that in those countries many people sell it at a high price and export it at a low cost,” he added.

However, he warned that such a commercial approach was detrimental to the local industries highlighting that the government would create an enabling environment for investors interested in utilising the opportunity.

TPC Sugar Factory Chief Executive Office, Robert Baisac, said that he will consider utilising the opportunity through applying for other industrial sugar investments.

“As a factory, we can utilise this announced opportunity by the deputy minister on the production of industrial sugar.

This matter will be presented to the board of directors to see how it could be implemented,” he said.

According to Mr Baisac, the sugar factory produces more than 110,000 tonnes of sugar annually.

Tanzania’s local Production deficit has seen the country issue traders with permits allowing sugar imports from Uganda after a long standing ban.

The need of sugar in the country is estimated to be 670, 000 tonnes with domestic consumption taking up 515, 00 tonnes while 155, 000 tonnes are used for industrial purposes.

Sugar production from five local plants in 2018/2019 is estimated to be 353,652 tonnes for domestic consumption while no local sugar factory produces it for industrial use.