ABF Sugar chief meets President Samia, commits to Tanzania’s growth

DODOMA-Her Excellency Dr Samia Suluhu Hassan, President of the United Republic of Tanzania, on Wednesday, March 11, 2026, received Paul Kenward, Group Chief Executive Officer of ABF Sugar, who paid a courtesy call on her at State House in Chamwino, Dodoma.
Mr Kenward was accompanied by senior executives including Ami Mpungwe, Board Chairman of Kilombero Sugar Company Limited; Guy Williams, Managing Director and Chief Executive Officer of the company; and Derick Stanley, Corporate Affairs Director.

The meeting was also attended by Mr Nehemiah Mchechu, the Treasury Registrar, together with experts from the Office of the Treasury Registrar (OTR).

It is worth noting that Kilombero Sugar Company Limited is jointly owned by ABF Sugar, which holds 75 percent of the shares, and the Government of the United Republic of Tanzania, through OTR, which holds the remaining 25 percent through the Office of the Treasury Registrar.
The meeting focused on the continued growth of Tanzania’s sugar industry, ongoing investments, and opportunities to further strengthen collaboration between the Government and the private sector in advancing the country’s national development priorities.

ABF Sugar is part of Associated British Foods (ABF), a leading international ingredients and retail group listed on the London Stock Exchange through the FTSE 100.

The ABF Sugar group has an annual turnover of approximately £3 billion and operates 21 production facilities across nine countries, employing about 35,000 people worldwide.

In Tanzania, the group also holds 100 percent ownership of Illovo Distillers Tanzania Limited (IDTL), the country’s largest producer of Extra Neutral Alcohol (ENA), located in Kilombero District.
During the meeting, Mr Kenward informed the President that the group has already invested more than Sh900 billion in Tanzania’s sugar industry and intends to continue expanding its investments.

Planned investments include further commitments in irrigation infrastructure, energy generation, and ethanol manufacturing.

The company also reported that its new sugar factory project is substantially complete, with commercial production expected to commence in June this year following successful trial operations.

Once operational, the project is expected to significantly increase domestic sugar production capacity and contribute to Tanzania’s goal of achieving self-sufficiency in sugar.
The expansion is projected to increase annual sugar production from approximately 126,000 tonnes to about 271,000 tonnes.

It will also expand the number of out-grower farmers participating in the value chain from about 8,000 to around 16,000 farmers.

Payments to farmers are expected to increase significantly, delivering substantial economic benefits to rural communities.

In addition, the project will contribute to national energy supply through the generation of 10 megawatts of electricity to the national grid, while expanded ethanol production is expected to reduce imports and strengthen the domestic industrial value chain.

President Samia welcomed the continued investment by ABF Sugar and reaffirmed the Government’s commitment to supporting domestic production, strengthening the sugar industry, and maintaining a stable and predictable investment environment that encourages responsible private sector participation in key sectors of the economy.

She emphasized that strong partnerships between the Government and investors remain essential in advancing Tanzania’s broader development priorities, including industrialization, job creation, value addition to natural resources, and improved livelihoods for rural communities.
The discussion also underscored the importance of continued engagement between the Government, regulators, and industry stakeholders to address sector challenges and ensure the long-term sustainability of the sugar value chain.

The meeting reaffirmed the shared commitment of the Government of Tanzania and ABF Sugar to deepen cooperation in supporting the country’s industrial growth and economic transformation.

Diramakini

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