Tanzania plans to more than double sugar output in three years as the government avails more land for growing cane and new mills start production, its farming minister said.
The East African nation targets output of 800,000 tons of the sweetener by 2022 from 345,000 tons currently produced by companies including Illovo Sugar Africa Ltd.’s Kilombero Sugar Co. and Alteo Ltd.’s Tanganyika Planting Co. The nation’s annual demand for sugar stands at 670,000 tons, about a quarter of which is for industrial use.
“We are taking steps to make Tanzania a net exporter of sugar by 2022,” Agriculture Minister Japhet Hasunga said Monday in a phone interview from the capital, Dar es Salaam. The government has set aside more than 300,000 hectares (741,316 acres) of land to be accessed by developers of cane plantations, he said.
The government will “soon” commission two mills in eastern Tanzania to produce as much as a combined 250,000 tons annually, according to Hasunga. Bakhresa Group Ltd. has started planting cane to produce an estimated 35,000 tons in 2021 and gradually increase annual capacity almost threefold, he said.
Tanzania targets economic expansion of 7.2 percent this year, partly driven by implementing President John Magufuli’s pledge to boost manufacturing by reviving and setting up new factories. To support production, the government plans power generation of 5,000 megawatts next year and to double it over half a decade.