Name of the Project
Kilombero Sugar Company (KSC) expansion project.
Location
Tanzania.
Project Owner/s
KSC, in which Illovo Sugar Africa holds 75% and the Tanzania government 25%.
Project Description
The project involves the construction of a new modern factory four times bigger than the existing KSC factory, which will increase KSC’s sugar production from about 127 000 t/y to 271 000 t/y.
The project will result in an almost three-fold increase in cane supply from KSC’s small-scale growers, from 600 000 t to 1.7-million tons.
The project includes:
- the construction of additional sugar storage and packaging facilities to reduce costs and increase the company’s branded prepackaged capability;
- the cogeneration of electricity for the KSC manufacturing complex and for export to the national Tanzanian grid;
- a 4 000 kℓ increase in the production of ethanol at the adjacent ethanol distillery, bringing total production up to 16 000 kℓ/y to meet growing local and East African export demand for potable alcohol.
The proposed factory has been sized so that all the available sugar cane will be crushed by the end of December each year to minimise disruptions and losses often caused by the onset of the rainy season.
Potential Job Creation
The number of small-scale farmers supplying cane to the expanded sugar factory will increase from 7 500 to between 14 000 and 16 000, which will positively impact on an additional 50 000 people in the Kilombero valley surrounding the operations.
There will also be an increase in direct employment by more than 2 000 jobs at the company and through the expanded sugar cane supply.
Capital Expenditure
$238.5-million.
Planned Start/End Date
Construction began in May 2021 and will be commissioned in July 2023.
Latest Developments
None stated.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
KSC, tel +255 232 626 011 or email kscl.info@illovo.tz.