Ubombo Sugar Limited (USL) has unveiled an ambitious growth plan that could see it become the second-largest standalone sugar factory on the African continent by 2033.
The announcement was made during the Eswatini Investment Conference gala dinner by USL Managing Director Muzi Siyaya on behalf of ABF Sugar CEO and Ubombo Chairman, Paul Kenward.
“Ultimately, we aim to reach 600 tonnes per hour in the ‘Future Expansion’ phase and achieve a production target of 328,000 tonnes of sugar per year by 2033,” said Kenward. “This would position Ubombo as the second-largest stand-alone sugar factory on the African continent.”
Currently, Ubombo Sugar operates with a crushing capacity of 480 tonnes per hour. Through the investment, this figure is expected to rise to 560 tonnes per hour by 2028 and further to 600 tonnes per hour within the next decade. The increase will be driven by a combination of factory upgrades and a significant increase in cane supply, supported by the government’s Lower Usuthu Smallholder Irrigation Project Phase II (LUSIP II).
ABF Sugar’s investment includes E1 billion for factory expansion and E1.3 billion for a cogeneration project that will boost electricity production using renewable cane fibre. These developments will allow USL to meet growing domestic and regional demand for both sugar and energy.
The production boost will also position Eswatini more competitively in the regional sugar market, enhancing export capacity to neighbouring countries and beyond. As a result, the company expects to deliver substantial economic benefits, including increased tax revenue, job creation, and downstream economic stimulation.
Kenward emphasized that the decision to scale operations in Eswatini reflects ABF Sugar’s strong confidence in the country’s business environment. He said that this is a demonstration of the confidence and faith that ABF has in the Kingdom of Eswatini.
A crucial element of the expansion strategy is the integration of new cane supply from LUSIP II, a government-led agricultural infrastructure initiative into which E1.2 billion has been invested through the Eswatini Water and Agricultural Development Enterprise (EWADE).
This integration is set to benefit smallholder farmers and rural communities through new irrigated cane farming opportunities. This, according to Kenward, will ensure a stable cane supply for the factory.
In addition to agricultural and industrial growth, the investment will fuel the national energy agenda. USL plans to increase its export of electricity to the national grid from 17 megawatts to 40 megawatts by 2028.
The cogeneration plant is set to begin construction in December 2025, following the anticipated signing of a Power Purchase Agreement (PPA) in August 2025. Once operational in 2028, the plant will enhance Eswatini’s energy security through sustainable, biomass-based electricity.
Kenward credited the government of Eswatini for creating an enabling environment for investors, citing policy certainty, access to regional markets, a clear tax regime, and ease of engagement with authorities as key strengths.