March 15, 2016
Sugaronline | http://goo.gl/81ROnc
The Prime Minister, Kassim Majaliwa, has directed sugar factories in the country to increase production to ensure adequate stock of the product all the time, according to Tanzania's Daily News.
He has also praised the Kagera Sugar Limited (KSL) for employing a big number of Tanzanians and supporting community services, pledging that the government will reduce taxes imposed on the product to make it more affordable to Tanzanians of all classes.
The premier made the remarks when he visited the sugar company, which is located in Misenyi District, Kagera Region. The premier is in the region for a three-day official tour. The factory is situated in the North West of Tanzania, 70km from the town of Bukoba and processes the cane to produce sugar for the local and regional market.
Majaliwa noted that the company has effected tremendous investment in the area to the extent of creating about 5,000 employment opportunities and supporting the surrounding communities.
"I congratulate you for this exemplary investment. It is my first time to be here. I have personally seen modern machines, large plantations, big number of workers, social services such as school and health centre," he said.
He expressed optimism that the investor will expand and im prove its activities and even absorb a big number of youth. The premier noted that the government and sugar producers recently agreed that sugar production will be increased to meet local demand in three years' time.
He pointed out that by increasing production, the product will be sold at a lower price unlike now when the product sells at between TZS1,800 (US$0.82) and TZS2,000.
He admitted that currently there are many taxes being imposed on the product, announcing that the government has started working on the matter to ensure charges go down.
On sugar imports, Majaliwa reiterated the recent directive issued by President John Magufuli that there wouldn't be any importation without a special permit from the State House.
"We are also very keen in allowing you (producers) to import sugar; we don't want to see you leaving production and instead put much effort in trading in the product just to get super profit," he told the manufacturers. He also assured the company that the government will improve road infrastructure in the district to ease transportation of cane to the factory.
Earlier, the company's Director General, Seif A. Seif, said the production has hit the 60,000 tonnes figure per annum, with the factory eyeing double production in the next three years. He said they were contemplating more expansion in which they are currently in the final stages to secure a US$68 million loan to expand the investment.
Seif appealed to the government to look into the possibility of reducing loan interests and allowing producers to engage in importation in case of shortages.