Wednesday, May 26, 2010

‘Kafue River basin doesn’t pose a threat to Zambia Sugar operations’

‘Kafue River basin doesn’t pose a threat to Zambia Sugar operations’
By Chiwoyu Sinyangwe
Wed 26 May 2010, 03:40 CAT

ZAMBIA Sugar Plc has said the findings of the recent European Union (EU) - commissioned report revealing strained water resources in Kafue River basin do not pose a threat to its operations.

A recent report commissioned by EU recommended that Zambia Sugar Plc and Consolidated Farming (Kafue Sugar) should not be allowed to undertake any further expansion programmes as this may pose a serious threat on water availability in the Kafue River.

The Kafue River is the country's single most important source of irrigation water for sugar production as it accounts for 99.4 per cent of national sugar output. Illovo Sugar group-owned Zambia Sugar Plc is the largest producer, with Nakambala estate and a mill in Mazabuka with approximately 89.6 per cent of total production while Consolidated Farming Limited (CF) is second, contributing about 9.8 per cent towards national production at its estate and mill in the Kafue flats in Kafue.

Commenting on the findings of the report, Zambia Sugar managing director Steve Langton said the company did not have immediate plans to expand its production lines after completing a major K1 trillion expansion programme which is projected to lift sugar output at the firm to 440,000 tonnes from the current 315,000 tonnes.

“We have no immediate plans to expand further right now so, it doesn’t really necessarily affect us too much but there are a number of reports that often say different things to a large extent all of them done by professionals. It’s difficult to know which one is right,” said Langton.

Currently, Zambia Sugar Plc produces 357,000 tonnes of sugar every year, Consolidated Farming (Kafue Sugar) 23,000 and Kalungwishi Estates Limited produces 1,400 tonnes per year.

According to the Strategic Environmental Assessment (SEA) study of the Sugar Sector in Zambia funded by the EU, the lower Kafue River Basin is becoming water stressed due to the multiple water users and the regulation of flows at the Itezhi-tezhi dam.

The report done by three consultants Juan Palerm, Tonnis Sierevogel and Munguzwe Hichaambwa revealed that there were indications that water rights already allocated to Zesco and both Zambia Sugar and Consolidated Farming might be exceeding future water availability.


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