ONOMO Hotel Dar es Salaam

TPC Announces TZS 112.5 Billion Investment for New Molasses Plant in Tanzania

Tanzania Molasse Factory
Tanzania Molasse Factory

TPC Limited, Tanzania’s longstanding sugar producer, has announced an investment of TZS 112.5 billion in a new molasses processing plant.

The investment follows a profit of TZS 72.7 billion after tax, realized from sales totaling TZS 235 billion in the 2022/23 financial year.

Molasses, a byproduct of sugar production, will be the focus of this new facility.

TanzaniaInvest Whatsapp Channel

Treasury Registrar Nehemiah Mchechu disclosed the project details after a recent shareholder meeting in Moshi.

Mchechu noted the board’s approval of TZS 112.5 to 125 billion for the project, highlighting potential employment growth, increased factory revenue, and higher tax contributions.

The plant, set to commence construction next year, aims to enhance the sugar value chain and is expected to contribute 4 to 7 megawatts of electricity to the national grid.

About TPC

Located in the Kilimanjaro region, TPC covers 16,000 hectares, with half dedicated to sugar cane cultivation.

In 2000 the company was acquired by Alteo Ltd and Groupe Quartier Français (now Tereos Océan Indien), a major player in Tanzania’s sugar sector.

TPC is controlled by Kagera Sugar (75%), and the Government of Tanzania (25%).

As the majority shareholder, Kagera Sugar, is responsible for managing the company’s operations, while the government’s role is to ensure that the company operates in a manner that is consistent with the national interest.

Sugar production increased from 36,000 tonnes annually in 2000 to 116,700 tonnes in 2023, thanks to significant investments in field and infrastructure upgrades.

TPC employs 1,900 permanent and 1,000 seasonal workers, contributing to local employment and community development.

TPC has been a leading dividend payer among government-partnered businesses. Jaffary Ally, Head of Administration at TPC, reported that the factory paid TZS 99 billion in taxes, levies, and dividends in 2022/23.

RELATED:  Irish Food Group Opens Manufacturing Facility in Tanzania
Related Posts