Deal #1907 Version #56177

Illovo Sugar Ltd inherited a long standing land conflict with the surrounding villages which dates back to the Kilombero Sugar Company's establishment in the 1960s. Villagers took around 1950ha of company land (villagers took the land from the company). Illovo Sugar Ltd requested compensation from the government for the lost land. The government agreed to compensate the company by allocating land in Lwipa; the company refused, arguing that it was too far from their plant. It instead demanded about 6000ha to establish another plant in Lwipa. The government refused their request; the company won a case against the government in court; problem still unsolved (Mwami & Kamata 2011)