Sugar mill owners in Tanzania get assurance of support from the government

Dar es Salaam: The Government has reiterated its stance to continue supporting owners of sugar factories across the country. The Minister of Industry and Trade, Dr Selemani Jafo, gave the assurance while speaking at the Bagamoyo Sugar Factory in Makurunge area, Bagamoyo District, Coast Region over the weekend. Dr Jafo pointed out that the current administration was committed to offering a conducive environment for investment.

“President Samia is committed to protecting these factories,” Dr Jafo said, “As the overseer of this sector, it’s my responsibility to ensure a conducive environment for their operation.” He said the visit was meant to review the production activities of the factory and address some of the challenges before offering guidance on how best to manage the operations.

He also called upon the Bagamoyo Sugar Factory to increase sugar production, as the commodity is in short supply, particularly during the rainy season when most factories reduce or stop their production due to weather. He said the demand for sugar in the country now stands at 802,000 tonnes, with 250,000 tonnes required for industrial purposes and 552,000 tonnes for household consumption.

“I am impressed by the investment here,” he said, urging the management of the factory to upscale their production to meet the country’s sugar needs.

He also urged Tanzanians to support local industries, emphasizing that people needed to have confidence in domestic enterprises. “It is very important that citizens trust our industries. We support them by believing in them, and when we do not believe in them, we are discouraging investors and making sure that development is at a snail’s pace,” Dr Jafo said.

In addition to sugar production, Dr. Jafo praised the Hill Group for its significant investment in modern poultry production and encouraged other stakeholders to collaborate with the Agricultural Development Bank, which offers affordable loans to agriculture investors.

The bank’s Managing Director, Mr. Frank Nyabundege, highlighted the importance of utilizing the bank’s guarantee funds to support sugar producers. “We have seen a modern investment in poultry production, unlike any other in Tanzania. I commend the Ministry for its support, and our President for allocating over Sh100 billion to investors. I encourage stakeholders to take advantage of the Agricultural Development Bank,” Mr. Nyabundege said.

Mr. Hussein Sufiani, Director of Communications for the Bakhresa Group, reported that the Bagamoyo Sugar Factory currently produces between 1,800 and 2,000 tonnes of sugar per day. The factory aims to reach a total output of 80,000 tonnes, with a long-term target of 100,000 tonnes. The factory is also providing over 1,500 jobs in its first phase, with the potential to create more than 3,000 jobs upon the completion of all three phases. It also plans to generate 5 megawatts of power using factory waste.

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