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Sugar

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Tanzania’s annual sugar demand is currently at 440,000 tons, as reported by the Sugar Board of Tanzania, while sugar production is approaching levels of self-sufficiency, with an annual increase of 70,000 tonnes, bringing the total production to 380,000 tonnes.

Sugarcane farming and processing in Tanzania cannot meet the national demand and the gap is filled with sugar imports.

In 2021, Tanzania’s raw sugar imports amounted to $151M, ranking it as the 48th largest raw sugar importer globally. Raw sugar was also the 14th most imported product in Tanzania, with major imports coming from India ($41.2M), United Arab Emirates ($32.5M), Saudi Arabia ($19.2M), Thailand ($14.5M), and Uganda ($12.9M).

The Tanzanian government has implemented a strategy to increase annual sugar production to 756,000 tons by 2025. This strategy includes expanding sugar factories, encouraging farmers to cultivate sugarcane, and attracting investment in the sugar industry.

By 2026, sugar production in Tanzania is projected to exceed 433,000 metric tons, with an expected average annual increase of 1.7% from 2021 to 2026.

Sugar production is concentrated mainly in 3 regions: Morogoro, Kagera, and Kilimanjaro. At present, there are 4 large sugar estates in Tanzania: the Kilombero Sugar Company with a 40% market share, the Tanganyika Planting Company (34%), Kagera Sugar (17%), and Mtibwa Sugar Estates (9%).

In April 2020, the Tanzania Investment Centre (TIC) issued a notice inviting domestic and foreign investors to develop sugarcane and sugar processing plantations using the 20,000-ha farm in Kibuye in the Kigoma region in northwestern Tanzania.

And in July 2021, the Tanzania Revenues Authority (TRA) has waived the 15% import tax on sugar for industrial use, as part of the 2021-2021 National Budget efforts to improve the business environment in the country.

In his budget speech of May 2023, Tanzania’s agriculture Minister Hon. Hussein Bashe said that the production of sugar cane in the year 2023/2024 is expected to reach approximately 4,500,000 tons which will produce 465,000 tons of sugar.

Latest Update: 9th May 2023

Source: Bank of Tanzania (BoT), Tanzania Ministry of Agriculture, Tanzania Investment Centre (TIC), Tanzania Revenues Authority (TRA).