Zambia sugar production grows
By Nawa Mutumweno – Zambia Sugar produces 1.9 million tons of cane from its own operations and 1.6 million tons of cane from independent outgrowers, totalling 3.5 million tons of cane; 400 000 tons of sugar; 120 000 tons of molasses; and 40 MW of power generated from a renewable energy source (bagasse).
A statement obtained from the company says it sells 150 000 tons of sugar per annum into the domestic market and 250 000 tons of sugar per annum into the regional and European markets, generating the much-needed foreign exchange for the country.
‘’Zambia Sugar endeavours to contribute to the environmental and social development and well-being of the people and communities within which it operates, thus enhancing its footprint through the promotion of safe production, equity and the development of human capital,’’ the statement reads in part.
The company creates value by transforming sugar cane into many products for its customers, makes substantial payments to the value chain of suppliers and growers, contractors, distributors, transporters, employees and to Government through taxes, as well as to shareholders and other providers of funds.
It has successful gone into public private partnership (PPP) with Government on a number of projects. For instance, it has entered into a long-term arrangement to continue fortifying local market sugar with Vitamin A to combat malnutrition within the country.
‘’Similar PPP arrangements have been entered into with regard to malaria prevention and the distribution of ARVs in the country’s fight against HIV& AIDS and TB.’’
The Illovo Group, which owns Zambia Sugar, has listings on the Johannesburg, Lusaka and Malawian Stock Exchanges which gives the public in all the three countries the opportunity to become shareholders of the businesses.
It also demonstrates transparency by the Group which complies with all the stock exchange listing regulations.
In order to develop a sustainable future for the country, Zambia Sugar is exploring opportunities to invest in ethanol production for use to blend with fuel. If this investment is realised, it would result in a substantial reduction in the importation of fuel, thus saving the country in foreign exchange.
‘’This is in line with the Government’s objective of adding value to raw materials. Additional employment opportunities would be created for skilled artisans and engineers,’’ the statement adds.
To complement the ethanol production, the company is also exploring the use of its residual fibre from the cane extraction process, called bagasse as a renewable fuel feedstock for factory boilers to produce electricity to power its own operation. Zambia Sugar has become a ‘’power island’’ with the capacity to generate all of its own electricity requirements during the crushing season, freeing up the national grid to supply a growing economy.
By extending this model to increase the use of biomass left behind in cane field after harvesting, Zambia Sugar could develop the capacity to supply additional power into the national grid.
Zambia Sugar is currently developing a strategy to expand its support to small-growers schemes as economically-viable suppliers of cane. This will grow the local economic base of Mazabuka and promote the town’s overall development.
Agriculture is the mainstay of Mazabuka and the company is there to ensure that it remains that way by building its strategies around sustainable value addition to the sugar industry.
The company is currently Africa’s biggest sugar factory producing sugar for local, regional and European markets from sugarcane grown on a total 27 000 hectares by the company’s own agricultural operations and from independent growers.
The investment of KR960 million in the 2007 major factory and agricultural expansion increased sugar production capacity by 200 000 tons to 450 000 tons per annum, and increased annual power generation by 30 MW.
Zambia Sugar has been farming sugar cane at the Nakambala Estate in Mazabuka from the 1960s, using sustainable agricultural practices. It was in the first tranche of companies that were privatised in 1995 and today stands as one of the most successful and valued agricultural companies in Zambia, contributing to the economic and social development of the country.
True to its motto of ‘A Catalyst for Development’, it has put in place a robust Corporate Social Responsibility (CSR) programme that cuts across housing, health, education, sports and recreation, and safety. Zambia Sugar has definitely been a sweet success over the years!
