President Samia meets ABF Sugar chief to strengthen industry growth

Dodoma. President Samia Suluhu Hassan on Wednesday received the chief executive of ABF Sugar, Mr Paul Kenward, at State House in Chamwino, where the two held discussions on the development of Tanzania’s sugar industry.

The meeting was a courtesy call intended to reaffirm the company’s long-term commitment to the country’s sugar sector.

Senior executives from Kilombero Sugar Company Limited also attended the discussions.

ABF Sugar, a global sugar producer and part of Associated British Foods, is listed on the London Stock Exchange.

The group holds a 75 percent stake in Kilombero Sugar Company, while the government of Tanzania owns the remaining 25 percent.

The company has so far invested more than Sh900 billion in the country’s sugar industry.

During the meeting, Mr Kenward briefed the President on the near completion of a new sugar factory developed by Kilombero Sugar.

Commercial production at the facility is expected to begin in June this year.

The project is expected to significantly expand the company’s output.

Once operational, annual sugar production is projected to increase from about 126,000 tonnes to approximately 271,000 tonnes.

The expansion is also set to strengthen the participation of smallholder farmers in the sugar value chain.

The number of out-grower farmers supplying cane to the company is expected to double to around 16,000.

Higher payments to these farmers are anticipated to improve household incomes and stimulate economic activity in rural communities where sugarcane farming remains a major livelihood.

In addition to sugar production, the new facility will generate electricity from bagasse, a by-product of sugar processing.

About 10 megawatts of power will be supplied to the national grid, contributing to the country’s energy supply.

President Samia welcomed the continued investment in the sector and reaffirmed the government’s support for initiatives aimed at strengthening domestic production.

She emphasised the importance of maintaining a stable and predictable investment climate to encourage private sector participation in strategic industries.

The President also noted that partnerships between the government and private investors play an important role in expanding industrial capacity, creating employment and promoting value addition within the economy.

Both sides agreed on the need for continued engagement between the government and industry stakeholders.

Such cooperation, they said, is essential to ensure the long-term sustainability and competitiveness of Tanzania’s sugar value chain.