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Tanzania Sugar Industry dates back to the 1920’s and 30 with smallholder cane juggery production in Kilombero and Mtibwa valleys. Production of granular sugar dates from 1931 at Arusha Chini by M/s A.S. Tanganyika Planting Company and later at Karangai- Bukoba and Turiani in Morogoro region.
After independence in 1961, the Government initiated strategies to strengthen production at commercial scale, thereby, witnessing establishment of the Msolwa sugar factory at Kilombero.


Government nationalization of private firms in 1967 saw the National Food Corporation (NAFCO) taking charge of the development of the sugar sector; resulting into establishment of the Mtibwa sugar Estates in 1973 and Ruembe Sugar Factory (Kilombero II) in 1976.The small Kagera sugar plant damaged by war in 1978 was also re-erected into a large sugar plant commissioned in 1982.


In 1974, Government established the Sugar Development Corporation (SUDECO) in place of NAFCO to develop the sugar industry and handle sugar distribution, exportation and importation. In 1992, Sugar trade was liberalized followed by privatization of the sugar companies starting with Kilombero in 1997/98, in 1998/99 Mtibwa, TPC 2000/01 and finally Kagera in 2001/2002

List of Factories in Tanzania

Kilombero Sugar Company Ltd is located in Morogoro Region in Districts of Kilombero and Kilosa. Kilombero (KI) known as Msolwa is located in Kilombero District and Kilombero (KII) known as Ruembe is located in Kilosa Ditrict. Kilombero Sugar Company was privatized to Illovo Sugar Limited which acquired 75% and retaining 25% to the Government


After privatization the company has achieved: - improvement of estates infrastructures, Provision of out growers technical support i.e. clean seed cane resulted into higher cane production and deliveries to the factories. Extensive factory expansion covered cane unloading stations, cane preparation milling, and steam for power generation pan floor, weighbridges and instrumentation automation.  
The company had high reputation of encouraging out growers, by improvement in cane payment system incentive system. Through the division of proceeds (DOP) between the factory and out growers with the aim of increasing growers share from 42% to 60%.

 

TPC Limited was established in eary 1930s by company which was registed in Denmark in the name of Tanganyika Planting Company limited.


The company was registered in Tanzania as TPC on 29th June 1973 and shareholders remained the same M/s A.P.Moller of Denmark. Sukari Investment Company Ltd purchased 75% of shares of TPC limited in March 2000, and became the majority shareholders of the company; the government retained the remaining 25%. Sukari Investment Company Ltd, is registed in Mauritius and is owned by one Mauritius Company and French company, Deep river –Beau champ Limited and Quartier Francais.


Since privatization and first phase between 2000 and 2004 the company has intensively invested in rehabilitation of its plantations infrastructure, equipment and buildings. In 2004 it was therefore decided to move into an expansion phase involving the replacement of major equipment such as boilers and generators as much higher capital investment than originally anticipated. The factory crushing capacity has been increased from 125TCH to 160 TCH, the area under sugarcane was extended from about 6000ha to 8000ha. The harvests season at Tpc lasts for 8.5 months from July to mid March because of the long rains which usually hindering the harvesting and transportation of cane, the sucrose content also falls to the lowest level during the rainy season.

Mtibwa Sugar Estates Ltd is located at 38E-6S in Turiani Division, 102km north of morogor town and 290 km from Dar-Es-Salaam. It occupies an area of more than 6000 ha of land, the estate has two rain seasons; the short rains are receives from October and December while the long rains are from March to May. The company was privatized in 1999, and purchased by Tanzania Sugar industries Ltd (TSIL) a local company incorporated in Tanzania.


At the time of privatization MSE was performing below potential due to a number of factors notably lack of spare parts, lack of serious maintenance work, obsolete of equipment, poor cane quality. Since privatization significant investments have been made in key areas of the factory. As a result of investment made the overall efficiency of its operations has registered tremendously. More Info

               

Kagera Sugar Limited was privatized on 3rd December 2001 with the Government sale of 89.47% .before privatization Kagera Sugar Limited was non operative. The cane fields had reverted to bush and the factory its self was disuses and overgrown. The objectives of privatization were to improve expansion of local and regional markets, access to financing of working capital and needed investment for modernization, rehabilitation expansion and diversification, to ensure continued operations and improved efficiencies


After privatization investor stated the process of rehabilitating the factory and expanding the estates.  The company immediately invested heavily in land preparation equipment (ie bulldozes, excavators, tractors and ploughs and graders) by 2008 approximately 9000 hectares was already under cane, expansion continued at the rate o 1,500 additional hectares per year. Various new varieties from Mauritius, South Africa and Kibaha were also being tested.  More Info 

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