Zambia Sugar announces $132m expansion plan

Zambia Sugar PLC is investing $132 million in ongoing projects and plans to boost production from 400,000 to 500,000 metric tonnes.

Company Chief Executive Officer Oswald Magwenzi announced the expansion at the 4th Private Public Dialogue Forum on Friday, revealing that the Zambian sugar industry ranks among the world's top 10 producers.

Mr Magwenzi said the expansion would require an additional investment of between $60 million and $100 million, depending on final project specifications.

"At the International Sugar Organisation conference in London, I announced our intention to expand output to 500,000 tonnes," he said, adding that Zambia is consistently among the top 10 lowest-cost sugar producers globally.

The CEO noted that Finance Minister Situmbeko Musokotwane has challenged the industry to reach 1 million tonnes of production within five to eight years.

Mr Magwenzi said the expansion would strengthen non-traditional exports and help generate foreign exchange for the country, with significant market opportunities across the continent and region.

The production increase will include 5,000 hectares of out-grower schemes, representing separate investment beyond the $132 million in current projects.

Among the ongoing investments, Zambia Sugar has recently commissioned an $18 million falling film evaporator to increase processing capacity and is constructing a $75 million customer service facility near Mazabuka.

The company is also investing $23 million in modern irrigation systems at Nakambala.

Additionally, the Energy Regulation Board has approved the expansion of Zambia Sugar's coal generation plant from 40 megawatts to 53 megawatts, the first phase of plans to eventually reach 100 megawatts.

Mr Magwenzi said the investments demonstrate confidence from the company's board, management and parent company Associated British Foods in Zambia's economic environment.