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Mwale City investor brings Dangote linked firm to manage Mumias Sugar

Tumaz and Tumaz, which hired the Dangote-associated firm, emerged as the top bidder with USD 27.6 billion for a 20-year lease.

Story Highlights
  • Dangote’s Sugar division, an affiliate of Dangote group and the largest supplier of sugar in Africa reported an Sh35 billion turnover for the first 6 months of 2021, an increase of 27 percent from the amount reported in 2020.

An Indian company running Dangote Sugar Refineries in Nigeria, J.P Mukherji & Associates (JPMA) could be soon mandated to run Mumias Sugar should it win the bid as proposed by Tumaz and Tumaz Enterprises, a company associated with Mwale City Investor Julius Mwale.

Tumaz and Tumaz, which hired the Dangote-associated firm, emerged as the top bidder with USD 27.6 billion for a 20-year lease.

The Mumias Sugar Receiver Manager P.V. Rao said the bids will undergo technical and financial evaluation before announcing the winning bid.

Other bidders who submitted their bids are Kruman Finances associated with French and Turkish investors, with a bid of Sh19.6 billion for a 25-year lease, and Transmara Group (Sarai) with a bid of Sh11.5 billion over a 20 year lease period.

Others are Pandhal Industries with Sh9.7 billion over 20 years lease while Kibos Sugar bid came in at Sh8.8 billion.

Devki Mills bid Sh8.4 billion over a 20-years lease whil West Kenya Sugar’s was Sh3.5 billion.

A Mauritius based company Sucrie Des Mascarelgnes Ltd also participated but did not disclose the value of its bid

Mwale’s hiring of JPMA gives an insight into his plans of running the miller if he wins the bid.

JPMA has been a consultant and manager of many sugar factories across the world including Saudi Arabia, India, Ethiopia, Uganda, Tanzania, and Nigeria.

Here in Kenya, it was consulted for the establishment of Kwale Sugar Company in 2014.

The firm’s work with Dangote is currently one of the largest sugar projects in the world being responsible for upgrading Dangote’s factories to crush 24,000 tonnes of cane per day from 6,000 tonnes per day.

Dangote’s Sugar division, an affiliate of Dangote group and the largest supplier of sugar in Africa reported an Sh35 billion turnover for the first 6 months of 2021, an increase of 27 percent from the amount reported in 2020.

The group’s chairman is Nigerian Aliko Dangote, who is Africa’s richest person with a fortune of Sh1.2 trillion.

Mumias Sugar reported revenues of Sh3.5 billion for 6 months in 2015, which decreased to Sh800 million for 6 months in 2018 before entering receivership.

Mwale said JPMA has been his technical bidding partner, together with the US consulting and infrastructure firm KE International.

The Mwale City Investor strengthened his bid after he reportedly secured Sh22 billion (USD 200 million) from a top American.

The tycoon said he will offer the farmers Sh2.2 billion through Mumias Outgrowers Company (MOCO) as an incentive to resume sugarcane growing.

He also allocated Sh2.2 billion each for a new hospital, housing, airport, and for the upgrading of ethanol plants to manufacture medicines and vaccines.

Mwale further allocated Sh5 billion to the factory upgrade, Sh800 million to the water bottling plant, and 2.2 billion to the power generation plant

Via
Laban Wanambisi
Source
Capital FM

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