Tanzanian President, Samia, reveals how volatile sugar prices cause her sleepless nights

Dar es Salaam. President Samia Suluhu Hassan recounted on Wednesday, August 7 how recurrent sugar price hikes were putting her in a difficult situation, stating that the presence of the Mkulazi Sugar Factory will ensure a reliable supply of the product.

Speaking after inaugurating the Mkulazi Sugar —built by the National Social Security Fund (NSSF) in collaboration with the Tanzania Prisons Service through its productive arm, Prison Corporation Sole—President Hassan revealed how rising sugar prices during certain periods of the season have deeply affected her.

The Mkulazi Sugar Factory is located in Kilosa District, Morogoro Region.

The latest sugar price hikes in Tanzania were in January and early February this year. A kilogramme of sugar ranged between Sh4,5000 and Sh10,000 in various locations, up from the usual Sh2,600 and Sh3,500.

“Sugar is not a staple food for adults; it’s primarily for children because, as we age, we tend to consume less of it. Street vendors also rely on it for their businesses. If you ask them to buy it for Sh7,000 or Sh8,000 per kilo, it’s simply not feasible,” she said.

President Hassan noted that when producers were given permits to import, they failed to deliver the expected quantities.

She emphasised that projects like Mkulazi could be potential game changers in addressing this issue.

She said even if there were changes in policies and taxes, the Mkulazi factory would continue to produce for the benefit of the nation.

“When the government is working, there are policy and tax changes that might not satisfy the private sector, causing them to regress a little and reduce production,” she said.

She noted that the government will take all necessary measures to expand the capacity of the Mkulazi Sugar Factory.

She stated that even in the event of heavy rains, the factory will utilise its reserves and distribute them to the market to ensure Tanzanians can access the product easily.

“We will extract all the reserves from our warehouse and deliver them to the public. However, when it comes to privately owned factories, we cannot intrude and force them to release their stock. Such actions, unless under extreme emergency measures, are unacceptable in good governance,” she said.

President Hassan instructed the Director General of NSSF, Masha Mshomba, to initiate a process of collaborating with the private sector to start investing in the second phase of the Mkulazi Sugar Project.

Conducted successfully, she said, it will ensure a reliable sugar supply in the country, which is why the government has amended the law to allow the National Food Reserve Agency (NFRA) to buy and store sugar to ensure food security.

Additionally, President Hassan called for the sustainability of the factory, noting that experience shows government-owned entities are managed differently from private sector ones.

She urged the Mkulazi leadership to well manage the project to ensure its sustainability.

“If the project fails and you (the project manager) fail. If you succeed, then the project will succeed too. This project should live on, and if it fails, you won’t be the only one to fail. So make sure the project is sustainable for the nation’s benefit,” President Samia directed.

The management of Mkulazi Holdings Company (MHCL) stated that the factory uses advanced technology and has the capacity to process 500,000 tonnes of sugarcane, which is equivalent to 50,000 tonnes of sugar per year.

“Domestic sugar production began on July 1 of this year, at between 200 and 250 tonnes per day,” said the chairperson of the MHCL board of directors, Dr Hildelitha Msita.

Dr Msita said that Mkulazi sugar was now available in market outlets under the brand name of ‘Mafao Sugar Utamu Kama Wote.’

She added that MHCL plans to expand production of sugarcane products, including ethanol, which will be used as a raw material for drug manufacturing.

“This step will enable the company to increase revenue and lower sugar prices, but we ask the government to continue providing funds to facilitate road construction in smallholder sugarcane farms,” said Dr Msita.

Agriculture Minister Hussein Bashe said they will make every effort to ensure the protection of the Mkulazi sugar factory, which will also produce industrial sugar.

Bashe said the Sugar Board of Tanzania has started reviewing regulations to protect the factory, which will help reduce the 50,000 tonnes of industrial sugar imported from abroad.

“By June 2025, regulations will have been changed to protect this factory that also produces industrial sugar,” he said.

Industry and Trade Minister Dr Selemani Jafo said President Hassan continues to make history by increasing the number of factories in her administration, particularly in the sugar sector, which has faced significant challenges.

“Now you are making history. Under her policies, Kilombero Sugar will produce 271,000 tonnes, Kagera 155,000 tonnes, Mkulazi 50,000 tonnes, and Bagamoyo Sugar 35,000 tonnes. In a shorter period, we will meet the sugar demands,” said Dr. Jafo.

On August 3, during the inauguration of the Mtibwa Sugar Factory irrigation dam while on a visit to Morogoro Region, Minister Bashe said the current sugar demand in the country is 650,000 tonnes, but this year’s production is expected to be 550,000 tonnes.

He said that by 2026, production is expected to reach 750,000 tonnes, with a target of one million tonnes by 2030.