Tanzania: Illovo Sugar to build $45m distillery

The South African based sugar producer, Illovo Sugar Ltd is set to inject $45 million into a new distillery unit at its Tanzania subsidiary, effectively boosting its alcohol production.
Mr  Graham Clark, Managing Director of Illovo Sugar Ltd told The East African Business week in Dar es Salaam last week that the company expects production to start by May 2013.
Officials said the funds to be pumped into Kilombelo Sugar Company should raise the firm's production of portable alcohol by 12 million litres annually.
The improved capacity is expected to help Kilombelo Sugar fight off growing competition in the alcoholic drinks industry where other breweries have also raised their production capacities.

Clark said the alcohol will be produced from the fermentation of molasses, a by-product of the sugar manufacturing process, which would allow the group to capture its maximum value and to bypass a growing number of challenges relating to the current export of molasses to world markets.
"We have created an opportunity in Tanzania to produce ethanol from molasses and we will invest in an on-site production facility to turn the molasses into high-value alcohol," he said.
The exports of the products will also be undertaken within the East African Customs Union, taking advantage of Illovo's existing strong regional customer base.
Illovo Sugar is also expected to soon embark on an exercise to find a suitable firm to construct the plant.
Illovo said that an environmental impact assessment has already been approved by the Tanzanian Government.
The firm said that Vinasse, a by-product of the alcohol production process, is to be evaporated to produce a potassium-rich concentrated molasses solid product to which the balance of nitrogen and phosphates will be added to produce a liquid fertiliser for application on Kilombero's cane fields.
The distillation column bottoms and evaporator condensate are to be treated to below legal discharge levels for return to natural water courses.
Power requirements for the distillery will be provided largely by Kilombero's own sugar factories which utilise cane fibre residue, known as bagasse, as a bio-renewable fuel feedstock in the boilers to generate electricity.
Illovo's long term plans include starting fuel and potable ethanol production in Zambia and may consider similar projects in Malawi.15 million litres of potable ethanol plant are also being considered in Mali where Illovo expects to start production in 2014 or 2015.
The Serengeti Breweries Limited (SBL) has also invested over $40 million at the 500,000 hectoliters per year-new plant in Moshi, Kilimanjaro region in Northern Tanzania boosting its beer production by 50%.
According to statistics available, the firm has a capacity of producing 180,000 hectolitres per month (2.2 million hectolitres per annum).