Mkulazi Sugar Factory Begins Operations Adding 50,000 TPY to National Production

Mkulazi Sugar Factory in Tanzania has reached full operational status, contributing to the nation’s progress in achieving self-sufficiency in sugar production.

Located in Mbigiri Village, Kilosa District, Morogoro region, the factory is a joint venture between the National Social Security Fund (NSSF) and the Tanzania Prisons Service (PCS).

The completion of the factory is set to provide over 5,000 jobs, boosting local employment and economic development.

Mwamini Juma Malemi, Chairman of the NSSF Board of Trustees, confirmed the factory’s operational status during a recent visit.

Dr. Hilderither Msita, Chairman of the Mkulazi Holding Company Board, emphasized the factory’s readiness to supply the Tanzanian market with sugar.

The factory’s annual production capacity is projected to be between 50,000 and 75,000 tonnes of sugar.

This production capability is expected to significantly reduce Tanzania’s reliance on imported sugar.

Mkulazi Holding Company Limited (MHCL), incorporated on September 6, 2016, is the entity overseeing the factory’s operations.

NSSF holds a 96% stake in MHCL, with PCS owning the remaining 4%.

The factory’s alignment with the Tanzanian government’s goal of achieving sugar self-sufficiency by 2025/2026 is noteworthy.

In addition to sugar, MHCL plans to produce bio-ethanol, particle boards, and pulp.

The factory also intends to generate 15 megawatts of thermal electricity, contributing to the national grid.

The Sugar Board of Tanzania anticipates a rise in national sugar production to 750,000 tonnes, against the current 380,000 tonnes.

This increase in production is expected to save Tanzania up to 150 million USD annually in sugar importation costs.

Tanzania Sugar Demand and Production

Tanzania’s annual sugar demand is currently at 440,000 tons, as reported by the Sugar Board of Tanzania, while sugar production is approaching levels of self-sufficiency, with an annual increase of 70,000 tonnes, bringing the total production to 380,000 tonnes.

Sugarcane farming and processing in Tanzania cannot meet the national demand and the gap is filled with sugar imports.

The Tanzanian government has implemented a strategy to increase annual sugar production to 756,000 tons by 2025. This strategy includes expanding sugar factories, encouraging farmers to cultivate sugarcane, and attracting investment in the sugar industry.