Accounting for 25 per cent of Tanzania’s GDP, industry is an important pillar of economic growth. The sugar industry is considered one of the most lucrative sectors in the country, providing direct employment for about 30,000 people. Sugar production is concentrated in three main districts in Tanzania: Morogoro, Kagera and Kilimanjaro.
To boost the utilisation of sugar cane – the country’s rich natural resource – and enhance sugar production, ADFD financed the Kagera Sugar Factory project in two phases – 1977 and 2008.
The scope included the construction of a new sugar factory in Kagera with a total capacity of 105 tonnes per hour or approximately 2,500 tonnes per day, as well as the provision of advanced sugar production equipment. Furthermore, the funding covered the cleaning and repurposing of 14,500 hectares of land, with 12,460 hectares earmarked for planting sugar cane, and the remaining land allocated for buildings and roads.