M a r k e t N e w s

Tanzania: Sugar Board Plans to Build 3 New Mini-Sugar Plants

Posted on : Monday, 18th July 2016

Dar es Salaam — The Sugar Board of Tanzania (SBT) is planning to build three mini-sugar plants - with active involvement of local governments in Morogoro Region - within the next five years.

The plants would be built in Kilosa, Kilombero and Mvomero districts, according SBT's five year Sugar Industry Development Plan.
SBT has already carried out a pre-feasibility study for establishment of the mini-sugar plants in the three districts, according to a copy of the plan which The Citizen has.
The mini-plants are meant to help in utilising the surplus canes that remain uncrushed in each season.
To facilitate establishment of such mini plants, SBT will have to carry out the feasibility studies in the area, solicit funds from local and foreign investors and provide guidelines to farmers on how to obtain funds from financial institutions.
It will also develop bankable proposals to donors and international banks for realisation of the projects.
SBT will also be required to initiate a mechanism in which the government will provide financial support through Tanzania Agricultural Development Bank and TIB Development Bank with concessionary terms.
Speaking on the sideline of sugar stakeholders meeting last week, the chairman of Sugar Industry Development Trust Fund, Mr Deo Lyato , said the five year plan was intended to mobilise all stakeholders in the sugar sub-sector for fully utilisation of its huge potentials that will make Tanzania self-sufficient in production of the sweetener.
Already one local investor, Dr George Mlingwa who owns Geoman Cane Estate Limited in collaboration of sugarcane out-growers has a plan to construct a factory with a capacity of producing 4,000 tonnes of sugar a year at Mikumi next year.
Speaking at a recent ceremony to receive a grant of Sh628.5 million from Southern Agricultural Growth Corridor of Tanzania (Sagcot), Dr Mlingwa said his company has already raised a working capital of Sh8 billion to kickoff the factory construction process. According to him, the factory will engage 500,000 out-growers around Mikumi who will be allowed to own a 10 per cent stake in the company.
Tabling the draft plan during a stakeholders' meeting in Dar es Salaam, the SBT planning manager, Mr Abdul Mwamkemwa, said the listed several activities that will be conducted to attract an increased number of investors into the sugar sub-sector.
"The government will be setting aside funds which will be used in allocating land to investors annually... .it will also be developing water, electricity and transport infrastructures," he said.
It is also recommended that the government must come up with tax incentives such as corporate tax, Value Added Tax on electricity and on land rents.
Communities surrounding areas identified as good for sugar plants will have to be equipped with knowledge and skills to increase negotiation capacity with potential investors.
When completed the three mini-sugar plants are going to employ thousands of young people who are currently jobless in those districts, according to SBT manager.

Source : allafrica.com
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