TPC Limited has announced a US$52 million investment aimed at modernising Tanzania’s sugar industry through an upgraded sugarcane value chain and expanded production of ethanol and technical alcohol.
The initiative represents a shift from exporting raw molasses to processing it into multiple industrial and energy products that will contribute to job creation, government revenue, and national industrial development.
Chief Executive Officer Jaffari Ally confirmed that construction of the new processing facility has reached 30% completion, with 70% of required materials already on site.
The project is scheduled for completion in December 2026. Once operational, it is expected to improve farmer productivity, strengthen company earnings, and increase Tanzania’s overall economic output.
The facility will produce 16.3 million litres of Extra Neutral Alcohol annually, positioning TPC among the country’s leading ethanol producers. Additionally, it will generate 400,000 litres of technical alcohol each year for use in energy-efficient cooking stoves, a development expected to help reduce dependency on firewood and charcoal.
Ally noted that the plant will also yield 8,000 tonnes of potassium fertiliser derived from molasses by-products. The fertiliser will support chemical-free farming practices, providing local farmers with affordable inputs.
Furthermore, the project will produce 400,000 litres of carbon dioxide for industrial use, particularly within the beverage manufacturing sector.
A new power plant incorporated into the project will produce six megawatts of electricity, increasing TPC’s supply to the Tanzania Electric Supply Company (TANESCO) from the current 2-3 MW to 7 MW.
According to Ally, the increased capacity will support employment growth, enhance tax contributions, and align with government efforts to promote clean energy and industrialisation.
Workers’ representative Bilali Mchomvu said the expansion will raise production volumes, strengthen competitiveness, and create approximately 1,800 jobs for youth and surrounding communities. He added that improved profitability would support better wages and additional employment opportunities.
Former Moshi Urban MP Priscus Tarimo welcomed the investment, describing it as a model for Tanzania’s future industrial growth.
He said increased local production of fertiliser and alcohol products will reduce import dependence, conserve foreign exchange, and provide accessible inputs for farmers while increasing tax revenue.
TPC’s growth follows significant changes since 2000, when the government sold 75 per cent of its shares to Sukari Investment. Sugar production has risen from 36,000 tonnes to 120,000 tonnes annually, while government revenue increased from Tsh 2 billion (US$819.34K) to Tsh 97 billion (US$39.74 million). Sugarcane yields have also grown from 66 tonnes per hectare to 150 tonnes.
Earlier this year, President Samia Suluhu Hassan declared sugar a strategic crop, authorising the National Food Reserve Agency to procure and store the commodity to stabilise supply.
Between 2018 and 2023, national sugar production rose from 295,000 tonnes to 460,000 tonnes, supported by factory expansion, increased acreage, and smallholder farmer support.
