LAPF Pension Fund (LAPF) has signed a shareholding contract for the construction and operation of a modern meat processing plant in Mvomero District, Morogoro Region.
In the new investment LAPF Pension Fund has injected 10bn/-, a measure that is aimed at supporting industrialisation drive spearheaded by the fifth phase government.
Officiating at the shareholding contract signing ceremony on behalf of Morogoro Regional Commissioner, Dr Kebwe Stephen Kebwe, Regional Administrative Secretary Clifford Tandari said it was gratifying for LAPF Pension Fund to supplement government’s efforts in the industrialisation agenda.
“It is gratifying to see that the agenda of industrialisation is tak ing place and today we are going to witness the launching of a journey which will make this place productive in the near future,” Mr Tandari said.
LAPF Director General Eliud Sanga said the ultra-abattoir that will be built at Nguru Hills Ranch in Movomero Nguru Hills Ranch Ltd was one of the opportunities among others that the Pension Fund had grasped and concluded to invest.
“Nguru Hills Abattoir is just the beginning of the Fund in the era of investing in the industrial sector. Today, we bear witness to the second major investment in Morogoro Region,” he said.
According to Mr Sanga, implementation of Nguru Hill Abattoir project was the second after the first investment – Msamvu ultra-Modern Bus Terminal — implemented at Msamvu area in Morogoro Municipality.
Under the contract, Mr Sanga said, LAPF would finance the construction of some infrastructures and acquisition of trucks for product transportation. “This project is very significant and will be beneficial to many stakeholders including cattle keepers across the country as they will get a reliable market for their livestock,” he insisted.
He said the abattoir would trigger creation of direct and indirect job opportunities and increase foreign currencies from export of beef, production of by-products which are important raw materials for other industries.
Under the new shareholding structure LAPF owns 39 per cent of shares while the remaining shares are owned by Eclipse Investments LLC, a subsidiary company of Zubain Corporation from Busara and Busara Investment companies.
The industry, whose operations are scheduled to commence next January, is expected to enable slaughtering of 300 cows and 2,000 goats per day. “With this modern abattoir an average of 9,000 cows will be slaughtered every month, which is 108,000 cows annually.
Also a total of 60,000 goats will be slaughtered every month and this counts to 720,000 goats annually,” he said. He added that 80 per cent of meat that will be processed in the industry will be sold abroad and a total of 500 people will be employed.
Morogoro District Commissioner, Regina Chonjo said the establishment of the industry would enable pastoralists to benefit from the business. “I can assure you that our people will now keep animals with specific goals, they are going to benefit from this business due to the availability of reliable market,” she said.
At least 6,000 acres of land have been allocated for the industry. A total of 1,200 acres has been allocated for animal grazing. Mr Janardhan Pilai, Zubain Corporation Chief Operating Officer, said beef produced would be mainly exported to the Middle East and Far East.
“In marketing strategy it is crucial for these shareholders especially Zubain Corporation to provide crucial link with Gulf States market where exportation will be concentrated,” Mr Pilai said.