Tongaat Hulett has launched a new sugar refinery project in Mozambique, investing Mt2.5 billion to enhance local production and reduce sugar imports.
Target Information
Tongaat Hulett has reaffirmed its commitment to the long-term success of Mozambique's sugar industry with a recent investment of approximately Mt2.5 billion (equivalent to R550 million) to establish a new sugar refinery at its Xinavane operations. On July 24, 2017, a ground-breaking ceremony was held in Xinavane, attended by notable figures including Mozambique's Prime Minister, His Excellency Carlos Agostinho Do Rosário, and Tongaat Hulett's CEO Peter Staude, along with various dignitaries and stakeholders.
This state-of-the-art sugar refinery is projected to have a processing capacity of 90,000 tons per annum. Upon completion in the latter half of 2018, it aims to cater to the local market’s refined sugar requirements, currently estimated at 70,000 tons annually, thereby significantly reducing the need for imports.
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Industry Overview in Mozambique
The sugar industry in Mozambique is vital for the country's economic growth, yet it relies heavily on imported refined sugar due to insufficient local production capacity. Currently, Mozambique's refining capabilities only reach about 20,000
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Tongaat Hulett
invested in
Sugar Refinery
in 2017
in a Other Private Equity deal
Disclosed details
Transaction Size: $44M