It appears that the highly anticipated Bagamoyo sugar plantation project has been shelved.
The Tanzanian government decided to pull the project in order to safeguard Wami River which was the main water supply source for the project. There was also a need to protect Saadani National Park, which borders the area where the project was to be implemented.
Prime Minister Kassim Majaliwa told Parliament that the government reached its decision following an advice by a parliamentary committee.
The project was structured to maximise sugar and power production and production of ethanol.
The wildlife in Saadani depend on water from Wami River. Continuing the project would have consumed a lot of water and affected the well-being of wildlife in the park.
The project would have boosted local production of sugar which is currently unable to meet the demand. This has seen the government import 70,000tonnes in order to cushion the rising demand during the upcoming Holy month of Ramadhan.
The government will pursue other areas where similar investments could be carried out without affecting other sectors.