The current sugar consumption in Tanzania is estimated at approximately 600,000 tonnes per year while the domestic production is only 300,000 tonnes per year. This means that Tanzania has to import sugar for large amount of money. With a per capita consumption of sugar that is only 30% of EU’s and South Africa’s and 60% of Kenya’s, together with an anticipated rapid population increase, the national consumption is expected to increase substantially requiring increased imports of sugar unless the domestic capacity is augmented significantly.
Tanzania has a shortage of electric power even though only 15% of the households have access to electric power through the national grid. Co-generation of power from the surplus of bagasse from the sugar cane processing is a proven source of renewable power capable of replacing diesel that is currently used to generate power. By following the example set by Brazil and India, Tanzania is in a position to increase renewable power production and to become less dependent on imported diesel oil for power generation. The project will enable the electrification of all the surrounding villages and supply renewable power to the grid for up to 100 000 rural houesholds.
As Tanzania imports 100% of its oil, approximately 80% of all export revenues 2013 were spent on oil imports. Bioethanol is a proven source of renewable fuel for vehicles replacing gasoline and diesel. Tanzania has a great potential to become less dependent on imported oil and other fossil based power, as well as becoming a net exporter of value added agroindustrial products. Tanzania could also increase ethanol usage by replacing charcoal and fire wood for cooking. In addition, Tanzania is currently, according to FAO, losing approximately 400 000 ha per year in deforestation, primarily caused by the production of charcoal and firewood. It is estimated that if 60 000-80 000 ha were dedicated for sugar cane for ethanol production, if produced with the same efficiency as expected by the Bagamoyo project, it would generate enough ethanol to replace all charcoal currently consumed in Tanzania.
Housing: EcoEnergy is planning for an off-site housing model with the aim to maintain and integrate the vast majority of Bagamoyo Project employees into the existing communities. As a majority of the employees are expected to come from the surrounding villages they will be encouraged to continue living within their original social structures but will be supported with housing allowances in order to improve their housing conditions.The ambition is to strengthen the existing social structures in the surrounding villages and to trigger new growth points by providing the Bagamoyo Project employees and their dependants with the opportunity to obtain homes and to use schools, clinics and other local facilities regardless of whether they continue their employment with the project.
Education: In spite of a high population growth in the Bagamoyo District, there are currently sufficient places for primary school students in public schools. Furthermore, the District is dealing with secondary school quality reforms as part of a wider national Education Sector Reform Programme which is receiving strong support from development partners. The private sector role is to support the public process with information needed for proper planning of education needs. The project company will secure education for dependants of employees through dialogue with education authorities, private school providers and other educational institutions.
Healthcare & Medical Facilities: Based on continuous dialogue with Bagamoyo District regarding expected changes in the communities and the consequences on the demand for medical services, it is evident that improvements are needed in current public plans as a result of the planned investment. The Project plans to establish in-house healthcare facilities in the form of an occupational health clinic with the emphasis on prevention and awareness programme, as well as an onsite mobile clinic, equipped for minor injuries and diseases that in emergencies can operate as an ambulance. The Project is also looking at linking employees to the National Medical Insurance Scheme to make use of the available medical care as a starting point, while urging for improved medical facilities at these service points.
The project will mainly use land in the district of Bagamoyo that earlier belonged to the Government of Tanzania. The area consists of an abandoned state owned cattle ranch that has not been in use since 1994.
Yes, the project follows ILO core labour standards. During project design, construction and operation, all parties will be required to sign up to Agro EcoEnergy´s Code of Conduct, and will follow the mitigation and monitoring requirements of the ESIA and the Environmental Management Plan (EMP), Occupational Safety Management Plan (OSMP) and the Social Management Plan (SMP) structured in accordance with the requirements of the international environmental and occupational health & safety standards ISO 14001 and OHSAS 18001.
If the project would not materialize, the project’s public benefits such as increased revenue to the government, improved infrastructure, introduction of a new cash crop and thousands of new job opportunities will not be realised. This would also aggravate the current domestic edible sugar and power shortages and interrupt the initiated process of replacing imported fossil fuel with domestically produced renewable fuel. In addition, if the on-going land abuse around the project area were to continue the remaining pockets of valuable biodiversity currently in the area would be decimated by the rapidly increasing unsustainable charcoal making and hunting (poaching).