Kagera Sugar Limited was incorporated under the Companies Ordinance (CAP, 212) videregistration No. 5036 dated 17thJuly 1973.The main objective of the company is to carryon business as planters, growers, producers and manufacturers of and dealers in sugar andallied products. Sugar Development Corporation became the holding corporation of Kagera SugarLimited from 1973.During the invasion of Kagera area by enemy troops from Uganda, inOctober 1978, substantial damage was caused to the assets of the Company including theold plant. As the result the old plant ceased to operate. Walchndnager Industries Limitedof India constructed a new factory. The factory started commercial production from July1983 after a period of twelve months trial run and corrective engineering works, whichwere carried out from July 1982 to June 1983. The new factory has a capacity of crushing2,500 tons of sugar cane per day, with yearly maximum output of 56,000 tons of sugar.During the re-construction period (i.e. July 1978 – June 1982), M/S.J.P.MurkherjeeAssociates of India were appointed to take over responsibility for the consultancy workof the factory up to June 1988, while HVA International BV of Holland provided theagricultural team to advice and execute the plantations’ development work up toDecember 1984.For various reasons the company’s production gradually declined from 8,823 tons in1983/84 to 943 tons of sugar in 1987/88. As a result in 1989/90 the Government decidedto improve the company’s production by rehabilitating the plant through a joint ventureof private companies and Kagera Sugar Limited.In August 1990, New Sugar Company Limited (NEWSCO) was formed to act as avehicle for rehabilitation and management of Kagera sugar Limited. As a result anagreement for Rehabilitating Kagera Sugar Limited was entered into on 16thOctober1990 between Kagera Sugar Limited, New Sugar Company limited, Sugar DevelopmentCorporation (all of Tanzania), African Management Services Company, BV ofNetherlands
