Mikumi to have mini sugar factory

The investors, under Geoman Cane Estate Limited, received 287,000 US dollars (about 600m/-) addition support from the Southern Agricultural Growth Corridor of Tanzania (SAGCOT)’s Catalytic Trust Fund to boost their activities meant to expand market for farm produce from small scale farmers.

The founder of the company, Dr George Mlingwa, said during the handover ceremony of the grant in Dar es Salaam on Wednesday that the factory will have the capacity to produce 150 tonnes of sugar per day at starting stage before reaching its maximum 500 tonnes.

“There are about 500 families that depend on sugarcane cultivation, but they stopped farming due to long distance from Mikuni to Kilombero - about 70 kilometres away,” Dr Mlingwa said.

The growers, under Mikumi Sugarcane Growers Association, have the capacity of producing between 5,000 and 10,000 tonnes of canes a year depending on market availability.

Dr Mlingwa, a former Member of Parliament (MP) for Mikumi constituency, said once in operation the association will be given not less than 10 per cent of the company’s share. The total investment for the mini-sugar factory 8.0bn/- was raised through a commercial loan.

The company needed an extra 400,000 US dollars (over 800m/-) for supporting the out-growers and purchasing of canes managed as part of the money. The SAGCOT CTF loan is footing the gap.

The remaining balance was secured from Southern Agriculture Growth Corridor of Tanzania (SAGCOT) Catalytic Trust Fund loan. The factory output will assist reducing the country’s sugar deficit by 1.3 per cent and also economically empowered Mikumi residents.

“The cane growers used to sell their products to jaggery (unrefined sugar) producers. Today there is no jaggery producer thus complicated their sugarcane cultivation,” Dr Mlingwa said.

The factory has the capacity of employing 200 staff. The SAGCOT CTF Executive Secretary John Kyaruzi said the project was outstanding since it will assist to boost farmers’ welfare and reducing sugar deficit.

“And the good thing, the project only needs less than a year to go into production. Therefore farmers will start selling their canes in next season,” Mr Kyaruzi said. The CTF rationale is to increase demand side and create new markets for agriculture produce that way enables farmers to increase output due to ready available marketplace.

The CTF financing is provided at a low cost or interest free loans, repayable as soon as business attracts private finance, thus catalysing and sustain local content in agribusiness investments.

SOURCE: DAILY NEWS

• 671