Dar es Salaam. Recurrent sugar shortages and price spikes, once a persistent challenge for Tanzanians, have officially come to an end as the country begins exporting sugar for the first time in its history, officials have confirmed.
For decades, Tanzania’s sugar sector has struggled with supply deficits, particularly between March and May when local factories suspend operations for maintenance and sugarcane loses its sucrose content due to rainfall. During such periods, the country heavily relied on imports to meet demand.
The situation worsened in early 2024 when retail prices soared to between Sh6,000 and Sh10,000 per kilogramme, prompting government intervention. The National Food Reserve Agency (NFRA) was directed to start purchasing and stockpiling sugar to stabilise supply.
However, the latest data from the Sugar Board of Tanzania (SBT) shows a remarkable turnaround. For the first time, Tanzania has successfully exported 85,000 tonnes of sugar, earning $72 million in revenue.
Additionally, two local factories are set to begin producing industrial sugar — the refined type used in food processing, pharmaceuticals and beverages — for which Tanzania’s annual demand stands at around 300,000 tonnes.
SBT Director General Prof Kenneth Bengesi told The Citizen that domestic production has now surpassed national consumption levels.
“The country’s annual demand for sugar is about 550,000 tonnes, and this year’s production has already exceeded 600,000 tonnes,” he said.
“As things stand, unless there is an emergency, we don’t need to import sugar. We have enough to meet local demand.”
Prof Bengesi said several factories are expanding to sustain the current momentum. Kagera Sugar Limited is expected to increase production to 300,000 tonnes annually within the next two to three years, while the new Kilombero Sugar Company (K4) will begin production on October 24, with a projected annual output of between 200,000 and 270,000 tonnes.
Mtibwa Sugar Estates is also finalising its expansion to reach between 150,000 and 200,000 tonnes a year.
In a major milestone, Mkulazi Sugar Company has completed its refinery setup and is ready to start producing 50,000 tonnes of industrial sugar, potentially ending Tanzania’s dependence on imports of the refined product.
Independent analyst Oscar Mkude described the achievement as transformative, noting that reaching sugar self-sufficiency while producing surplus for export enhances food security, stabilises prices, and creates jobs.
“In the past, prices would often spike to the point of being debated in Parliament, with the industry accused of being dominated by a few powerful individuals,” he said.
“But with local supply now meeting and exceeding demand, the market is becoming more competitive and stable, benefiting consumers.”
Mr Mkude noted, however, that challenges remain, including seasonal fluctuations in sugarcane quality during the rainy season, which lower sucrose levels and affect processing efficiency.
He recommended that Tanzania build strategic stockpiles through NFRA to cushion against future shortages and price instability.
Another analyst, Christopher Makombe, said Tanzania’s surplus production and entry into sugar exports mark a “significant milestone” in the country’s agro-industrial journey.
“It reflects improved agricultural efficiency, stronger self-sufficiency, and the effectiveness of government policy measures,” he said.
He added that local production of industrial sugar will save foreign exchange, stimulate downstream industries, and generate employment across the value chain — from farming and processing to packaging and transport.
“This development strengthens Tanzania’s industrialisation drive under Vision 2050 and supports the government’s broader goal of building a resilient, self-reliant economy,” he said.
According to a report by the Ministry of Agriculture tabled in Parliament in May, sugarcane production rose from 3.88 million tonnes — which yielded 367,718 tonnes of sugar in the 2020/2021 season — to 4.71 million tonnes, producing 431,736.74 tonnes in 2024/2025.
This represents a 17.41 percent increase in sugar output, or 61.68 percent of the national target of 700,000 tonnes.
In the 2024/2025 fiscal year, through the Tanzania Sugar Board, the government targeted 5.2 million tonnes of sugarcane production capable of yielding 520,000 tonnes of sugar.
It also prioritised expanding Mtibwa and Kilombero sugar factories, developing new plantations in Kagera and Dakawa, and setting up seed nurseries in the Kilombero basin.
By April 2025, the Mkulazi and Bagamoyo factories had already reached 19,124 tonnes (95.6 percent of their 20,000-tonne target) and 16,556 tonnes (47.3 percent of their 35,000-tonne target), respectively.
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