BUJUMBURA June 12th (ABP) – The Cabinet met on June 9, 2021 and analyzed the roadmap for the implementation of the rehabilitation, modernization and extension project of the Moso Sugar Company (SOSUMO) and appreciated the progress of the project as well as the schedule of activities.
In a press release issued on June 10, 2021, the Secretary General of the State and Spokesperson of the Government indicated that this roadmap was drawn up following the adoption by the Cabinet of the business plan for the SOSUMO rehabilitation, modernization and extension project. It emphasizes the process to be carried out in the action plan and shows the timetable for the execution of the action plan in order to enable the government to plan the investment and to monitor and implement it.
The press release said that the roadmap has two parts over a three-year period, namely irrigation, the acquisition of agricultural machinery and equipment as well as agronomic laboratory equipment and the rehabilitation and modernization of the factory. The investments to be made over the three years concern the installation of an irrigation system; the acquisition of agricultural machinery and equipment; the modernization of the laboratory and the revitalization of agronomic research. The overall cost of the investment amounts to 105,993,995,058 BIF.
For a good implementation of the project, the roadmap indicates the chronogram of the activities to be carried out, the deadlines and the related budgets.
Following the analysis of the roadmap, the Cabinet appreciated the progress of the project. Nevertheless, the Cabinet recommended to the ministers in charge of Agriculture and Finance to work with the BRB to separate the activities that can be financed in local currency as well as the foreign currency needs that can be supported by the BRB.
With a view to increasing sugar production in Burundi, it was recommended that people be encouraged to grow sugar cane by providing them with seeds, in order to sell the harvest to SOSUMO.
Regarding the extension of the factory by the acquisition of new machines, SOSUMO was asked to first prove that it has sufficient raw materials that the current factory is not able to process because, the observation is that the machines are at rest for a large period of the year.
The Cabinet also recommended considering opening up SOSUMO’s shareholding to private parties in order to increase its capital. The Minister in charge of Finance was also requested to continue contacts for obtaining financing for the project in matters that require foreign currency.
A note enriched by taking those elements into account will be brought back to the Cabinet Meeting; the press release continues to say.