Tanzania invests US$273.3M in Kilombero sugar factory to achieve self-sufficiency
New Kilombero Four plant to double output and create thousands of jobs.
TANZANIA – Tanzania has invested Tsh 700 billion (US$273.28M) in the construction of a major sugar factory in Kilombero, expected to become the largest in East, Central and Southern Africa.
The project is set to significantly expand domestic sugar production and support the country’s goal of achieving self-sufficiency.
Kitila Mkumbo, Minister of State for Planning and Investment in the President’s Office, made the remarks during a visit to the construction site.
He said the purpose of the tour was to confirm whether contractual commitments were being implemented as agreed. “I came to see for myself whether what was signed is being implemented physically, and I am satisfied with the progress,” he said.
The new plant, known as Kilombero Four, will double production capacity at Kilombero Sugar Company from 130,000 tonnes to 270,000 tonnes annually. The minister said the expansion will boost domestic output and accelerate Tanzania’s drive toward eliminating sugar imports.
Mkumbo commended the joint venture management for prioritising local employment, noting that engineers and technical professionals from Tanzanian universities are engaged in the project.
“I am happy to see these young men and women, very talented and graduates from our universities. I am told this factory will employ up to 90,000 staff,” he said, highlighting the government’s focus on job creation.
He linked employment expansion to the implementation of Vision 2050, which aims to ensure that up to 50 percent of the projected 118 million population by 2050 has access to decent jobs.
Currently, Kilombero Sugar Company operates three sugar factories and one ethanol plant, with ownership structured at 75 percent private investors and 25 percent government.
The minister said Tanzania is on course to end its long-standing sugar deficit by mid-year. “The long-standing sugar problem is coming to an end. Through deliberate government strategies and collaboration with investors, Tanzania will produce sufficient sugar for domestic consumption and generate surplus for export,” he stated.
During an inspection tour of Mkulazi I Farm in Morogoro District, he highlighted additional agricultural investments, including projects by Eagle Agrotech (T) and Santagro Ltd. Agriculture is one of nine priority sectors under Vision 2050, aimed at transforming the economy over the next 25 years.
“Tanzania is endowed with 44 million hectares suitable for agriculture, yet only about 30 percent is currently cultivated. Much of our farming has been subsistence-based, leaving vast productive land underutilised,” Mkumbo said.
Santagro’s General Manager, Luiz de Carvalho, noted challenges including livestock encroachment on farmland, which disrupts production, adding that increased security and stronger government support are needed to safeguard agricultural investments.
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