AfricaPress-Tanzania: CRDB Bank, the largest lender in the land, has so far loaned Kagera Sugar $100m to double production.
The loan enables the sugar producer to increase its production to 91,000 tonnes a year from 600 tonnes in 2001.
Under a new plan, Kagera Sugar said the new strategy in the next five-year was to double production to 170,000 tonnes a year and offer 10,000 jobs from the current 7,000.
CRDB Group CEO and Managing Director Abdulmajid Nsekela said when the bank delegation toured the sugar factory that the lender would continue supporting the industrial sector to further contribute to the country’s development.
“When we enable local manufacturers to increase their capital, it means they are able to increase output and widen their access to domestic and foreign markets and increase their contribution to the GDP,” Mr Nsekela said yesterday in Kagera.
The manufacturing sector’s contribution was about 15 per cent last year and 4.7 per cent in quarter one of this year.
The government’s vision through the Ministry of Industry and Trade is to have competitive industries, a healthy investment environment and business growth that enables inclusive and sustainable economic growth.
The CEO said collaboration between financial institutions and investors in particular in the manufacturing sector was something that must be prioritised to have a participatory and sustainable economy.
“Our tour of Kagera Sugar is part of our regular process of meeting our customers and listening to their needs and look at how we can improve our relationships and provide them with products and services that suit their needs,” Mr Nsekela said.
Official data shows that sugar demand stands at 710,000 tonnes annually of which 545,000 tonnes are for domestic use and 165,000 tonnes for industrial use.
However, local sugar factories produce 67.7 per cent of demand, which equals to 378,449 tonnes. Kagera CEO Ashwin Ranna said they thanked the bank for being a major partner in the development of the factory to enable them implement their goals.
““Until this year, the bank had already provided us with a loan amounting to $100m which has largely enabled us to implement our business plans and get us to where we are now,” Mr Ranna said.
CRDB Chairman, Dr Ally Laay, said their role as the board was to ensure and guide the management in the implementation of bank business strategies.
