TPC invests Sh130bn to unlock sugarcane value chain, produce ethanol

Ally said the project will move the company away from selling raw molasses.

Instead, molasses will be processed into a range of products that will create jobs, boost government revenue, and stimulate the economy through industrial production, alternative energy, and locally produced raw materials.

Construction is already 30 per cent complete, with 70 per cent of materials delivered. The project is expected to be finished by December 2026, increasing farmer productivity, company revenue, and national earnings.

Once operational, TPC will produce 16.3 million litres of Extra Neutral Alcohol (ethanol) annually, making it one of the largest distilleries in the country.

It will also produce 400,000 litres of technical alcohol per year for use in energy-efficient cooking stoves, reducing reliance on firewood and charcoal.

Ally said that the plant will generate 8,000 tonnes of potassium fertiliser from molasses by-products, suitable for chemical-free farming, and 400,000 litres of carbon dioxide for industrial use, especially in beverage factories.

The project includes a new power plant that will produce six megawatts of electricity, raising TPC’s supply to TANESCO from 2–3 MW to 7 MW. Ally said the initiative will improve employment, tax collection, and support the government’s clean energy and industrialisation goals.

The foundation stone will be laid by the Kilimanjaro Regional Commissioner, marking 25 years of partnership between the Tanzanian government and Sukari Investment Limited under a public-private partnership.

Registrar of the Treasury, Nehemia Mchechu, will highlight the partnership’s achievements.

TPC workers’ representative, Bilali Mchomvu, said the new plant will increase production, competitiveness, and create about 1,800 jobs, benefiting youth and local communities.

He noted that as company profits grow, salaries and employment opportunities will also rise.

Former Moshi Urban MP Priscus Tarimo praised the investment as innovative and a model for Tanzania’s industrial sector. He said producing fertiliser and alcohol domestically will reduce import dependency, save foreign currency, increase tax revenue, and provide affordable inputs for farmers.

Since 2000, when the government sold 75 per cent of its shares in TPC to Sukari Investment, sugar production has grown from 36,000 tonnes to 120,000 tonnes annually, while government revenue from the company rose from Sh2 billion to Sh97 billion.

TPC’s sugarcane yield has also improved from 66 tonnes per hectare to 150 tonnes, making it one of Africa’s most productive plantations and among the top three globally.