IDCZ to venture into sugarcane processing

THE Industrial Development Corporation of Zimbabwe (IDCZ) has revealed plans to venture into sugarcane processing targeting the export market saying local producers have been concentrating on the local market while the export market quotas remain unfulfilled.

It also seeks to tap into ethanol production and other value added products.

The project will be developed in partnership with other players on the farm production, IDCZ said.

“The demand for sugar in Zimbabwe and abroad continues to grow. Zimbabwean producers have been concentrating on the local market while the export market quotas remain unfulfilled thus presenting an opportunity for additional players on the market.

“The project will be developed in partnership with other players on the farm production while IDCZ’s interest will be on the processing side,” it said in a statement.

IDCZ noted that physical and climatic conditions in the lowveld favour the production of sugarcane saying the land is generally flat, characteristic of the lowveld and this allows for the efficient use of equipment.\

“The soils are characteristically deep, well drained, relatively unleached and of high base saturation. The warm to hot temperatures in summer and relatively warm frost-free winters favour the sugarcane plant as it converts the sun’s energy through photosynthesis more efficiently in the abundant sun of the lowveld.”

On the planned ethanol project, IDCZ said it is scouting for potential partners to co-develop the project.

“Local producers cannot meet the ethanol blending requirement for the country while the export market for ethanol is also very lucrative. A detailed feasibility study will have to be conducted to confirm viability and other parameters. IDCZ is seeking potential partners to co-develop the project.”

The country has an estimated sugar consumption of around 350 000 tonnes per annum and produces 500 000 tonnes.

The country has the capacity to increase sugar output by another 190 000 tonnes without additional investment in milling assets.

Zimbabwe is also one of the few countries which have embraced the blending of ethanol with petrol to cut the cost of importing fuel. Green Fuels and Triangle Limited run ethanol plants which produce fuel grade ethanol.

As part of the diversification and sustainability drive, both Hippo Valley Estates and Triangle mills have incorporated co-generation of electricity into their operations.

Added to that, the country is one of the significant sugar producers in the Sadc region and has been a surplus producer of sugar for many years, with capacity to produce sufficient sugar in various forms and quality grades to meet domestic and export demand.

IDCZ, the State-owned industrial conglomerate with an investment portfolio in sectors such as fertiliser, chemicals, automobile, property, cooking oil and cement, assumed an extended role as Development Financial Institution to provide cheap loans mostly to start-ups and to enterprises with potential to export.

This is in line with the Government’s thrust to expand the country’s industrial base to push import substitution.-chronicls