TANZANIA – TPC Limited, one of Tanzania’s largest and oldest sugar plant in Tanzania, has announced plans to invest Tsh112.5 billion (US$45 million) in the construction of a molasses plant.
The construction of the molasses plant will commence early next year, with the proposed location near the sugar processing plant in Moshi, Tanzania.
The project investment plans were revealed late last week after the Treasury Registrar for Tanzania, Nehemiah Mchechu held a consultative meeting with the company’s shareholders in Moshi.
According to Mchechu, the proposed investment will help boost the entire sugar value chain in the country, including other byproducts other than the sweetener including alcoholic spirits.
The company board is said to have approved an expenditure of between Tsh112.5 billion (US$45 million) and Tsh125 billion (US$50 million) for the construction of the molasses plant.
“The investment will boost employment, increase internal revenues for the factory, and generate more taxes for the economy. The molasses to be produced will be used to generate electricity,” said Mchechu.
Mchechu noted that from the electricity generated, at least four to seven megawatts will be fitted to the national power grid to boost electricity connectivity in the country.
TPC is said to be the highest in paying dividends in business entities in which the government has minority shares. The factory is said to have started dividend payments from 2010.
Situated in the Kilimanjaro region, TPC Ltd is one of Tanzania’s largest sugar estates. Of its 16,000 hectares of land, 8,000 hectares are used for sugar cane cultivation.
Over the years, TPC Ltd has made significant investments in the rehabilitation and upgrading of fields, infrastructure and equipment.
As a result of the sustained progress made in these areas, sugar production has increased from an annual production base of 30,000 tonnes to the present 100,000 tonnes.
The investment follows the company’s announcement of its financial result where it reported an after-tax profit of Tsh72.7 billion (US$29 million) for 2022/23 financial year and a record sale of the sweetener worth Tsh235 billion (US$94 million).