Swaziland – Ubombo Sugar, factory expansion, power co-generation project

Big Bend, Swaziland – Ubombo Sugar Limited’s factory expansion and power co-generation project has successfully entered its commissioning phase on time.  The major project will enable the company to increase its annual sugar production from 220 000 tonnes to more than 300 000 tonnes.  It will also significantly raise its power generation capacity by utilising biomass from cane as a supplementary fuel for the factory boilers. This will not only make the factory energy self-sufficient but allow it to export surplus electricity into Swaziland’s national grid.
 
The factory expansion project, which commenced two years ago, is linked to the government-sponsored Lower Usuthu Smallholder Irrigation Project (LUSIP) under which a major new dam and canal system has been constructed and which has to date facilitated the new development of an initial 5 000 hectares of land for local indigenous farmers to produce cane. Some of this cane will be harvested and delivered to Ubombo in the coming 2011/12 milling season.

Thus far around 1 500 jobs have been created, while over the longer term, the project overall is expected to provide economic benefits to 28 000 people. 

Combined with further planned cane development under the LUSIP project over the next two years, along with additional cane expansions by private growers and Ubombo itself, annual cane supply to the factory is expected to increase from around 2 million tonnes to over 2.6 million tonnes.

Ubombo, in conjunction with local government agencies which provided funding for the construction of the dam, and the EU which is funding land development, has played a key role in the co-ordination and implementation of the LUSIP cane development project, whilst also assisting in the:

• Provision of seed cane for new crops;
• Sourcing of agricultural inputs (fertilizers, etc);
• Provision of agricultural extension support;
• Provision of cost-effective cane haulage to the factory;
• Training and mentorship of growers.

Ubombo’s expansion project, linked to LUSIP, is the single largest commercial investment in Swaziland and will provide long-term, sustainable job opportunities, increased foreign currency earnings and savings, and increased tax revenues.

Note:

Ubombo Sugar Limited is 60% owned by Illovo Sugar Limited with the balance of shares owned by Tibiyo Taka Ngwane (Tibiyo) on behalf of the Swazi nation.