Tanzanian government assures sugar factory owners of support, suitable environment

 Dar es Salaam. The Minister of Industry and Trade, Dr Selemani Jafo, has pledged continued government support for sugar factory owners nationwide.

Speaking at the Bagamoyo Sugar Factory in Makurunge, Bagamoyo District, Coast Region over the weekend, Dr Jafo emphasised the administration's commitment to fostering a favourable investment environment.

"President Samia's strong commitment is to protect these factories. I oversee this industrial sector, which is part of my responsibilities and will ensure a conducive environment," Dr Jafo said.

His visit was aimed at observing production activities, addressing challenges, and providing guidance to improve operations.

During his visit, Dr Jafo advised the Bagamoyo Sugar Factory to increase its sugar production to counteract supply shortages, particularly during the rainy season when many factories face production halts due to weather conditions.

He highlighted the current national sugar demand of 802,000 tonnes, comprising 250,000 tonnes of industrial sugar and 552,000 tonnes of brown sugar for consumption.

"I am pleased with this investment," he added, urging the factory management to ramp up production to meet the country's needs.

Dr Jafo also addressed the broader issue of local industry perception, urging citizens to support and believe in domestic enterprises.

"It is crucial for Tanzanians to have confidence in our industries. Supporting local industries is essential for their sustainability. If we undermine them, we demoralise the investors and hinder progress," he said.

Dr Jafo also commended the Hill Group for its significant investment in the modern poultry production sector and called on other stakeholders to collaborate with the Agricultural Development Bank, which offers affordable loans to agriculture sector investors.

The managing director of the Agricultural Development Bank, Mr Frank Nyabundege, encouraged businesspeople to focus on agriculture and livestock due to the numerous investment opportunities available.

He highlighted the importance of utilizing the bank’s guarantee funds and sought to assure sugar producers of the bank's support.

"We have witnessed a modern investment in poultry production that may not be found elsewhere in Tanzania. I commend the Ministry for its support and our President for allocating over Sh100 billion to investors. I urge other stakeholders to engage with the Agricultural Development Bank," Mr Nyabundege stated.

Director of Communications for Bakhresa Group, Mr Hussein Sufiani, reported that the Bagamoyo Sugar Factory is currently capable of producing between 1,800 and 2,000 tonnes per day, with an anticipated total output of around 80,000 tonnes and a target of 100,000 tonnes.

The factory also provides over 1,500 jobs in its initial phase and is expected to create more than 3,000 jobs upon completion of all three phases.

Additionally, it will feature a 5-megawatt power plant that utilises factory waste for electricity generation.

Founder and managing director of Hill Group, Mr Hilary Shoo, expressed gratitude to the sixth-phase government for creating an enabling investment environment and granting various tax exemptions.

"I appreciate the Minister of Industries for being the first to visit Hill Group and thank the Agricultural Development Bank for their support from the project's inception. I also thank the President for supporting this initiative through tax exemptions," he said.

Overall, the visit highlighted the government's ongoing efforts to support and enhance the sugar industry and other local investments, reinforcing its commitment to economic growth and job creation.