Agro EcoEnergy Tanzania Ltd is investing US$550 million into the production of sugarcane for ethanol, sugar, and power projects in that country. Agro EcoEnergy has set up a special project company, Bagamoyo EcoEnergy to develop a modern sugarcane plantation and factory for the production of sugar, ethanol, and power for the domestic market. The project is expected to produce 10 million liters of ethanol within its first three years and 130,000 tons of sugar annually. The project will also be able to provide power to 100,000 rural households. The project was undertaken based on the fact that Tanzania currently imports approximately 50% of all sugar consumed and spends 80% of its total export revenue to pay for imported oil. An outgrower program has been built into the business plan with the sugar mill intentionally designed with a major overcapacity to enable growers in the surrounding communities to become commercial sugarcane growers.
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