Tanzania reaffirms support for sugar investment as ABF sugar expands production capacity
Tanzania’s president pledges support for sugar sector investment as ABF Sugar expands operations and prepares to launch a new factory to boost domestic production.
TANZANIA – Samia Suluhu Hassan, President of Tanzania, has reaffirmed the government’s commitment to strengthening domestic sugar production while maintaining a stable and predictable investment climate that encourages private sector participation.
The president reiterated the government’s position during a meeting with Paul Kenward, Group Chief Executive Officer of ABF Sugar, at the State House in Chamwino, Dodoma.
According to a statement released by the Directorate of Presidential Communications, President Samia emphasized that cooperation between government and investors is critical to advancing Tanzania’s broader economic priorities.
The statement said partnerships with private investors play a key role in supporting industrialisation, creating employment opportunities, promoting value addition to natural resources and improving livelihoods in rural communities.
President Samia welcomed the continued investment by ABF Sugar in Tanzania’s sugar industry.
During the discussions, Kenward said the company has already invested more than Tzs 900 billion (US$350 million) in the country’s sugar sector and plans to expand further.
He noted that future investments will include additional spending on irrigation infrastructure, energy generation and ethanol manufacturing.
Kenward also informed the president that the company’s new sugar factory project is nearing completion and is expected to begin commercial production in June after successful trial operations.
“Once operational, the project is expected to significantly increase domestic sugar production capacity and contribute to Tanzania’s goal of achieving self-sufficiency in sugar,” the statement said.
The expansion is expected to increase annual sugar production from around 126,000 tonnes to approximately 271,000 tonnes.
The project is also expected to expand participation among out-grower farmers in the sugar value chain, increasing the number from about 8,000 farmers to nearly 16,000 farmers.
In addition, the investment will contribute to the national power supply through the generation of around 10 megawatts of electricity to the national grid.
Expanded ethanol production is also expected to reduce imports and strengthen Tanzania’s domestic industrial value chain.
ABF Sugar is part of Associated British Foods, an international ingredients and retail group listed on the London Stock Exchange and included in the FTSE 100 index.
The sugar business generates annual revenue of about £3 billion (US$3.8 billion) and operates 21 production facilities across nine countries, employing around 35,000 people worldwide.
In Tanzania, the group jointly owns Kilombero Sugar Company Limited, holding a 75% stake while the Tanzanian government retains the remaining 25%.
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