Producers eye record sugar output as exports, investor confidence rise

In an interview with The Citizen, TSPA executive secretary Mr Kennedy Rwehumbiza, said seven active producers—TPC Moshi, Kagera Sugar Limited, Mtibwa Sugar Estate, Kilombero Sugar Company, Bagamoyo Sugar Limited, Manyara Sugar Company and Mkulazi Holding Company—collectively supplied over 340,000 tonnes of brown sugar from May to September 2025.

“This figure represents 147 percent of the estimated national demand for the first five months, which stands at approximately 230,000 tonnes.

Compared to the same period last season, this marks a 54 percent increase, underscoring the sector’s robust recovery and operational efficiency,” he said.

The production performance, he said, had an immediate stabilising impact on sugar prices which now ranges between Sh2,600 and Sh3,000 per kilogramme.

“With 80 percent of the sugar sold locally, consumers are benefiting from consistent availability and fair pricing. This stability reflects improved coordination across the value chain and a commitment to market responsiveness by producers,” said Mr Rwehumbiza.

On the export front, the industry is making significant strides in regional markets. By mid-October 2025, Tanzania had exported approximately 85,000 tonnes of sugar, generating over $72 million in foreign exchange earnings.

Producers eye to expand exportation of sugar to regional markets of Kenya, Democratic Republic of Congo (DRC) and Rwanda among others.

Producers say these exports reflect growing competitiveness and alignment with Tanzania’s industrialization agenda — positioning sugar not only as a food commodity but as a strategic export earner.

The growth is underpinned by aggressive strategic investments from existing and new producers, cementing the sector’s resilience and future capacity.

According to TSPA data, Kilombero Sugar Company is moving forward with its ambitious K4 project, which will ultimately add 144,000 tonnes annually.

Once completed, Kilombero's total output will exceed 270,000 tonnes, making it a cornerstone of the domestic supply chain.

Meanwhile, Kagera Sugar Limited is scaling up its operations through major investments in sugarcane cultivation and process optimization.

The company aims to more than double its current output of 140,000 tonnes by the 2029/30 season, creating jobs and stimulating economic activity in rural communities.

Other major producers, including Mtibwa, Bagamoyo and Mkulazi, are also investing heavily in their expansion projects to guarantee increased supply and diversification.

Mr Rwehumbiza said this trend of expansion is attracting new capital as the industry has seen the entry of four new players—Golden Sugar, Lake Agro, Mufindi Paper and Eagle-Agrotech —signaling growing investor confidence in the sector’s regulatory environment.

“Their emergence reflects growing investor confidence and the effectiveness of government policies in fostering a competitive and sustainable agribusiness environment,” he said.

Beyond raw sugar, Mr Rwehumbiza noted the industry is also evolving into higher-value products, with investments in refining, ethanol and Extra Neutral Alcohol (ENA) which are aligning with TSPA’s strategic vision for a more integrated and sustainable sugar value chain.

He said these developments promise to enhance profitability, reduce waste and support Tanzania’s transition to a greener economy.

TSPA underscores that the industry’s success rests on a strong partnership with out-grower farmers and public institutions.

Reforms in payment systems, digital monitoring tools and extension support have ensured timely cane delivery and equitable revenue sharing, keeping mills at full operational capacity.