The bank’s Managing Director, Abdulmajid Nsekela said this week while visiting the factory with CRDB board of directors and top management officials that in order to contribute towards economic growth and meet sugar demand for the domestic market, Kagera Sugar needs funding to boost its infrastructure.
“By financially supporting growth of domestic industries we are actually enabling them to grow and produce both for the domestic and foreign markets and contribute to economic growth,” Nsekela said while informing the board members that the investment also aligns well with the government’s industrialization agenda.
He further noted that demand for domestic sugar is growing hence the need to ensure that existing factories increase their capacity and new ones crop up through partnership with banks which have the financial means.
“We are visiting Kagera Sugar today to listen to their needs as part of routine interaction with customers so that we can have first hand information on their needs and how to solve them,” the CRDB chief noted.
Official statistics indicate that the country’s sugar consumption currently stands at 710,000 metric tons of which 545,000 tons are for human consumption while 165,000 tons are for industrial use. The local production of the sweetener stands at 378,449 tons which is 67.7 percent of total demand.
Kagera Sugar’s CEO, Ashwin Ranna commended CRDB for supporting the factory with a loan of U$100 million which has enabled the factory to exist and employ hundreds of people while also paying taxes.
“The CRDB loan has enable us also to implement all key investment plans to boost the factory this year,” Ranna said while noting that the since its privatization in 2001, Kagera Sugar has increased production from 600 tons to 91,000 tons per annum. “Our plan is to increase production to 170,000 tons within the next five years when we will employ 7,000 people,” he added.
CRDB Board Chairman, Ally Laay said they will continue giving management policy direction so that the bank plays a crucial role in national development. “Our role as a board is to continue working with management to perform well in business activities,” Laay said while commending Kagera Sugar for good corporate governance that has resulted in sustained growth of the factory.