Sugar supply, price outlook ease as factories resume production

The Tanzania Sugar Producers Association (TSPA) has previously said the sugar production cycle normally runs from May to April of the following year. However, this year’s season started late after heavy rains disrupted harvesting and milling in some major sugar-producing areas.

The delayed restart coincided with declining stocks from the previous production cycle, putting pressure on the domestic market and prompting the government to approve sugar imports to bridge the supply gap.

According to the Sugar Board of Tanzania (SBT), about 110,000 tonnes of sugar were approved for importation, with companies including Mohammed Enterprises Limited (MeTL), Kagera Sugar and Zenji Enterprises receiving permits.

The National Food Reserve Agency (NFRA) also took part in efforts to address shortages. The supply constraints pushed up prices in some parts of the country, with a survey by sister paper Mwananchi in late June showing retail prices had increased from about Sh2,800-Sh3,000 per kilogramme to as high as Sh5,000 in some areas.

The situation is now expected to improve as factories resume production and rebuild stocks.

Chairman of the Board of Kilombero Sugar Company Limited, Mr Ami Mpungwe, said the company’s new factory resumed production on July 7, while stock-building started on July 13 after overcoming initial operational challenges.

“We have resumed production and will soon pick up, and there will be availability of sugar,” he said.

Mr Mpungwe said one of the initial challenges was securing enough sugarcane supplies as farmers took time to respond to calls to deliver cane for processing.

Bakhresa Group Director of Communications Mr Hussein Sufiani said the company also resumed production in early July after addressing initial challenges.

“All factories have now started production,” he said.

The developments follow a difficult start to the 2026 production season, with SBT previously attributing part of the delay to prolonged rainfall in sugar-growing areas. Industry players also cited maintenance shutdowns, technical problems and commissioning challenges.

At Kilombero, the new K4 factory was not ready to begin crushing during the previous production cycle, while the old plant was not operated as it was expected to be replaced by the new facility.

Kagera Sugar, another major producer, also faced challenges linked to heavy rainfall that affected harvesting.

Tanzania has seven sugar-producing factories with a combined installed capacity of about 800,000 tonnes annually, against domestic demand estimated at around 550,000 tonnes.

However, actual production has remained below capacity, reaching about 410,979 tonnes by April 2026, according to figures presented in Parliament by Industry and Trade Minister Judith Kapinga.

The government has been investing in expanding sugar-processing capacity through projects at Kilombero Sugar and Mkulazi Holding Company, which are expected to increase local production and reduce reliance on imports.

SBT Director General said all local sugar factories had resumed operations except Mkulazi Holding Company, which was expected to start production this week.

“Only one factory, Mkulazi, has not yet started production. It is also expected to start this week,” he said.