Tanzania nears sugar self-sufficiency as production capacity surpasses domestic demand
Expansion projects at major sugar mills are boosting output, creating jobs, and positioning Tanzania closer to meeting all domestic sugar needs through local production.
TANZANIA – Tanzania is moving closer to achieving sugar self-sufficiency as expanding production capacity and rising output reduce the country’s reliance on imports and strengthen its domestic sugar industry.
Presenting the 2026/27 budget for the Ministry of Industry and Trade before the National Assembly in Dodoma, Industry and Trade Minister Judith Kapinga said the sugar sector continues to play a vital role in Tanzania’s industrialization agenda and broader economic development strategy.
According to the minister, Tanzania currently operates seven sugar manufacturing plants located across different regions of the country. These include Kilombero Sugar, Tanganyika Planting Company in Kilimanjaro, Kagera Sugar, Mtibwa Sugar Estates, Mkulazi Holding Company, Manyara Sugar, and Bagamoyo Sugar.
Combined, the factories have an installed production capacity of 800,000 tonnes annually, significantly exceeding the country’s estimated annual sugar consumption of approximately 550,000 tonnes.
The development marks an important milestone in Tanzania’s efforts to meet domestic demand through local production.
The sector has also continued to record growth in output. By April 2026, national sugar production had reached 410,979 tonnes, reflecting steady progress toward reducing dependence on imported sugar and strengthening local supply chains.
Apart from supporting food security, the sugar industry remains a major employer and contributor to rural livelihoods. The sector currently provides approximately 28,500 direct jobs and nearly 95,000 indirect employment opportunities, supporting thousands of households involved in sugar production and related activities.
To further increase domestic output, the government has prioritized expansion projects at key sugar factories. At Kilombero Sugar, a major capacity enhancement project is underway that will increase annual production from 123,000 tonnes to 226,000 tonnes.
Trial production at the upgraded facility has been completed successfully, with commercial operations expected to commence this month.
Meanwhile, Mkulazi Holding Company has installed new industrial sugar production equipment aimed at meeting growing demand from manufacturers and reducing imports of industrial-grade sugar. Trial operations at the facility have already produced 256 tonnes of industrial sugar, marking a significant step toward localizing production of a commodity traditionally sourced from international markets.
Minister Kapinga noted that the completion of the expansion projects is expected to generate an additional 8,500 direct jobs and approximately 25,000 indirect employment opportunities across the value chain.
Tanzania’s sugar self-sufficiency drive forms part of a broader strategy to strengthen local industries, support agricultural-based manufacturing, and reduce import dependence.
The government aims to satisfy domestic demand for both household and industrial sugar through local production while creating opportunities for future regional exports.
With installed production capacity now exceeding national consumption requirements, industry stakeholders are focused on ensuring efficient factory operations and adequate sugarcane supplies to fully realize Tanzania’s sugar self-sufficiency ambitions.
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