Tanzania vows to overcome sugar crisis with 2025 self-sufficiency plan

Dar es Salaam. The Sugar Board of Tanzania (SBT) has announced a bold plan to achieve sugar self-sufficiency by 2025/26, aiming to end the recurring sugar shortages that have been troubling the nation.

Speaking at a press conference Friday on July 5, 2024, SBT Director General Prof Kenneth Bengesi detailed the government's strategic response to the crisis, underscoring the impact of El-Nino rains that delayed this year’s goal.

"If it were not for the El-Nino rains, we would be self-sufficient this year," Prof Bengesi said, highlighting the government's measures to prevent future disruptions.

He mentioned that the expansion of sugar factories and increased investments are key components of the strategy.

Read: Tanzania in fresh move to curb sugar price spikes 

Currently, Tanzania’s sugar demand stands at 552,000 tonnes, with an additional buffer bringing the total to 650,000 tonnes. Prof Bengesi assured that the current measures are aimed at meeting those demands.

“The government has put in place strategies to avoid future shortages, including supporting factory expansions and further investments,” he explained.

He also mentioned that the National Food Reserve Agency (NFRA) will be responsible for importing sugar if gaps are to arise.

The announcement follows a turbulent period marked by tension between the government, sugar producers, and business entities.

On July 1, 2024, sugar producers raised issues about delayed import permits, alleging that the SBT issued permits to undeserving companies, thus leading to a sugar shortage in the country earlier this year, which Prof Bengesi refuted.

"We wrote to producers to collect their import permits starting on March 20 last year. Kilombero collected their permit on March 30, 2023," Prof Bengesi explained, noting that despite obtaining permits, only Kilombero imported sugar that season.

“Kagera and Mtibwa collected their permits on April 14, 2023, and TPC on May 3, 2023. Bagamoyo did not collect theirs at all,” he said.

Prof Bengesi refuted claims that permits were issued to unqualified companies. “All companies given permits had valid food business licences. The claims are baseless and are aimed at tarnishing the government’s good image,” he claimed.

“The companies criticized are the ones that imported sugar, helping us through this difficult period and lowering the sugar price from Sh6,500 to Sh2,800.”

Read:  Tanzanian government details measures to solve sugar crisis

The SBT has faced criticism for its handling of the situation, with sugar producers accusing the board of negligence.

Prof Bengesi countered the claims by emphasising the producers' delay in obtaining permits and their failure to import the specified amounts of sugar.

“Producers themselves delayed in getting the permits. Even after obtaining them, they did not import the required amounts,” he said.

The government’s response is comprehensive, aiming to stabilize the industry and attract more investments. Prof Bengesi highlighted significant expansions at Kagera Sugar and Kilombero, which is constructing a large factory expected to more than double its current production from 127,000 to 270,000 tonnes.

He also mentioned ongoing large reservoir constructions at Mtibwa and new investments in Bagamoyo, Mkulazi, Rufiji, Lake Agro, and the Mufindi Paper Mill in Kasulu, Kigoma Region.

“The stability of the investment environment in the sugar sector is significant for our country, which is why we have been able to attract such large-scale investments,” Prof Bengesi said.

“The government understands that this investment is substantial and requires significant capital, which is why it will continue to protect this investment to ensure that by 2026 we have sufficient capacity.”

The 2001 sugar law amendment plays a critical role in this strategy. According to Prof Bengesi, the amendment aims to identify the actual cost of sugar production, establishing competitive and fair product pricing that does not harm consumers.

It also sets up a system to evaluate the efficiency of sugar factories and ensures transparency in the sugar distribution system.

“We aim to ensure the country always has a sugar reserve for emergencies and to address challenges in importing sugar to fill the gap by empowering the NFRA, which has no conflict of interest in the business,” he said.

Earlier, Ambassador Ami Mpungwe, the Chairman of the Tanzania Sugar Producers Association (TSPA), denied that producers intentionally created a sugar deficit.

“We have repeatedly reminded the board about obtaining import permits, knowing the anticipated challenges. Despite the accusations, we were never allowed to be heard,” he claimed in a press conference.

The government's commitment to resolving the sugar crisis by 2025 offers a ray of hope amid the ongoing saga. By engaging all stakeholders and ensuring stringent measures, Tanzania aims to stabilize its sugar industry and secure self-sufficiency within the next two years.