Tanzania plans to double sugar production, eyes vast DRC market

Dar es Salaam. President Samia Suluhu Hassan said her government intends to double sugar production, with a strategic focus on tapping into the vast market of the Democratic Republic of the Congo (DRC).

Tanzania's total brown sugar requirement is 650,000 tonnes.

The country expects to produce 550,000 tonnes this year and aims to reach 750,000 tonnes by the 2025/26 fiscal year, with a target of one million tonnes by 2030.

Speaking on Saturday, August 3, 2024, in Morogoro Region during the inauguration of the Mtibwa Sugar Factory irrigation dam, President Hassan highlighted the significant investment in technology made by Mtibwa Sugar Company Limited.

This investment has enabled the firm to boost sugar production from 15,000 tonnes in 2017 to over 80,000 tonnes for the 2024/25 financial year.

“We are building transport and logistics infrastructure to access major markets, with a particular focus on the DRC, which is a vast market,” she said.

She said the government has been supporting the sugar sector, including by providing substantial tax exemptions, in the last ten years.

“I am informed that the project has so far expended $155 million (Sh415.505 billion) of its total $305 million (Sh817.607 billion) cost. We are used to seeing such significant investments from foreign investors,” she said, encouraging Tanzanians to continue investing in technology.

She reiterated the government's support for the private sector, emphasising its efforts to enhance and stabilise policies.

“A committee has been established to review the entire tax system and provide recommendations to foster the growth of the private sector and encourage investment in the country,” she added.

Mtibwa Sugar Company Limited Board of Directors Chairman, Mr Seif Seif, said the Mtibwa factory has been facing significant water shortages during the dry seasons. He emphasised that the construction of the dam will help the factory meet its goals, expand its farms, and install modern irrigation equipment.

He said, until now, they have installed 47 operational machines, with plans to reach 112 centre pivot systems by the end of the project.

Substantial investment has also been made in the purchase and installation of new machinery to increase sugarcane milling capacity from 100 tonnes per hour to 180 tonnes per hour, he said.

The expectation is to attain the 230 tonnes per hour production capacity.

The minister for Agriculture, Hussein Bashe, said the entire sugar sector is stable due to stable policies.

“The sugar sector contributes 1 percent of the Gross Domestic Product (GDP) and employs over 20,000 people in the entire supply chain from the farm level,” he said.

In another development, President Hassan launched the 'Tupendane' campaign in Mvomero District, Morogoro region.

"The project covers six sectors: livestock, natural resources and tourism, water, agriculture, and others. In the livestock sector, it aims to resolve conflicts and enable modern farming practices," she said.

Meanwhile, the Livestock and Fisheries Minister, Mr Abdallah Ulega, said they have been able to build auction markets and renovate others, spending Sh17.5 billion countrywide.