Tanzanian firm Kagera wins bid to buy Tongaat sugar business

BUSINESS REPORTER 

Tanzania-based sugar manufacturer, Kagera Sugar Limited, has won the bid to acquire the sugar division of Tongaat Hulett Limited (THL) in South Africa and investments in three other countries including Zimbabwe.

In a statement Friday, the business rescue practitioners said Kagera beat seven other suitors.

“After a rigorous process, we identified§ Kagera Sugar as the preferred candidate. The group is financially sound, with a solid track record. Its exposure to complementary sugar assets in
Tanzania and the Democratic Republic of Congo offers relevant technical and operational knowledge to assist the turnaround of THL’s South African sugar assets,” the business rescue practitioners said, adding Kagera’s sugar refineries in Oman and Bahrain would” provide access to world-class technologies and expertise to improve efficiencies”.

“Continuing to operate Tongaat Sugar Assets as a combined multi-country group will ensure continuity for the operations in Mozambique, Zimbabwe and Botswana.”

Nassor Seif, Kagera Sugar Ltd MD said the acquisition was in line with the group’s overall strategy to expand its operations throughout Africa, and its vision of becoming a leading sugar producer on the continent.

“We will extend the core values that have resulted in the success of our group companies to the new Southern African operations to benefit employees, growers and ultimately the economy of the region,” Seif said.

“The group is committed to investing significantly in the operations to modernise the plants and expand them to increase production and efficiencies.”

Kagera Sugar Limited is a sugar manufacturing company situated in Kagera in the North-Western part of Tanzania.

It is part of a group of companies which are the largest producers of sugar in Tanzania and owns sugar assets in Tanzania, the Democratic Republic of Congo and the Middle East.

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