Tanzania’s sugar ambition on track for self-sufficiency by 2027

The target had originally been set for 2025/2026, but delays in bringing the K4 factory into operation have pushed the timeline back.

According to the director general of the Sugar Board of Tanzania (SBT) Prof Kenneth Bengesi, the sector’s progress has been very encouraging.

 “Production volume has already risen significantly, and the government has continued to support the industry by working closely with factory owners and investors to ensure expansion and modernisation,” he said.

Self-sufficiency is central to the government’s broader industrialization agenda.

 Industrial sugar, in particular, is critical for Tanzania’s food and beverage sector, which is expanding rapidly.

 Local production will reduce costs for manufacturers and improve competitiveness in regional markets.

Prof Bengesi underscored this point, noting that sugar is a strategic commodity.

 “The government has continued to play an active role in supporting the sector’s growth, particularly by maintaining close communication with factory owners and producers, ensuring a coordinated approach to expansion and modernisation,” he said.

The executive secretary of the Tanzania Sugar Producers Association (TSPA), Mr Kennedy Rwehumbiza, said the country is on track to achieve self-sufficiency in sugar production sooner than many expect.

 “We strongly believe it’s possible — and not just within three years, but potentially even sooner,” he said.

He said: “Based on current progress, we’re confident that Tanzania will achieve sugar self-sufficiency within the next two years.

 This means producing enough sugar to meet all domestic needs and having surplus for industrial use and export.

Mr Rwehumbiza noted that the industry could have already reached that goal were it not for weather challenges in the second half of the 2023/24 season, which disrupted production.

 “If it weren’t for those setbacks, we might already be talking about reaching self-sufficiency within a year.

 The industry has the capacity, and the momentum is real,” he added.

According to him, the progress is the result of coordinated efforts between government and producers.

 “Reaching self-sufficiency isn’t just a goal — it’s a coordinated effort backed by serious commitment from both the Government and sugar producers,” Mr Rwehumbiza explained.

He pointed to ongoing expansion and modernisation among members of TSPA, which includes TPC, KSL, KSC, MSE, BSL, Manyara Sugar Company, and Mkulazi Holding Company Limited.

A key milestone will be the launch of the K4 mill, which will add 144,000 tonnes of production capacity.

 “Once operational at full capacity, this facility alone will allow Tanzania to meet its local sugar demand entirely through domestic production, paving the way for exports,” he said.

Beyond the established producers, new players such as Lake Agro, Golden Sugar, Mufindi Paper Mills (Kasulu Sugar Project) and Eagle Tech are developing projects that will further boost output.

 “These investments will significantly increase national production and could help Tanzania reach self-sufficiency even earlier than 2028,” he noted.

Mr Rwehumbiza also stressed the importance of a supportive policy environment.

 “We encourage the government — through the Sugar Board of Tanzania — to continue promoting investment-friendly policies that support long-term growth.

 This includes ensuring stability, predictability, and most importantly, protecting the local industry from unfair foreign competition,” he said.

 “With the right policy environment, producers can invest with confidence, expand operations, and help build a strong, self-reliant sugar sector that benefits all Tanzanians.

” The TSPA is the apex body representing the country’s leading sugar producers. It comprises seven operational mills actively contributing to national production, alongside one emerging investor, Golden Sugar Company, which is currently in the development phase.

The National Bureau of Statistics paints a picture of resilience in the face of volatility.

 Sugarcane production stood at 311,358 tonnes in 2020 before recovering strongly in 2021 with an 18 percent jump to 367,718 tonnes.

Growth slowed in 2022 with a modest three percent increase, but the sector then surged to a record high of 460,049 tonnes in 2023, a 21 percent gain.

The momentum faltered in 2024, when poor weather and other challenges triggered a sharp 14 percent decline to 395,293 tonnes.

Yet even with that setback, output between 2020 and 2024 expanded by nearly 84,000 tonnes, equivalent to a 27 percent rise. The sugar industry is also a major source of employment.

 In his recent budget speech, Minister for Industry and Trade Dr Selemani Jafo said the seven main factories — Kilombero, Mtibwa, Mkulazi, Kagera, TPC Moshi, Bagamoyo and Manyara — directly employ about 34,200 workers and support almost 200,000 indirect jobs.

Despite this contribution, the factories’ combined installed capacity of 638,486 tonnes per year falls short of the country’s total demand of 900,000 tonnes.

Household consumption accounts for 650,000 tonnes, while industrial needs make up a further 250,000 tonnes.

During his budget speech he said by March 2025, domestic factories had produced around 446,332 tonnes of household sugar.

Dr Jafo said the government’s strategy is now firmly focused on import substitution, with new investments such as the expansion of Mkulazi Sugar Factory expected to deliver the country’s first streams of locally produced industrial sugar.

Several new projects are in the pipeline, promising to shift the balance in Tanzania’s favour.  Among them is the Rufiji Sugar Factory, being developed by Lake Agro, with a planned capacity of 30,000 tonnes annually.

Meanwhile, the Kasulu Sugar Project in Kigoma, led by Mufindi Paper Mills, will initially produce 100,000 tonnes per year and later expand to 300,000 tonnes.