Mozambique’s sugar export earnings surge 50% in 2024 following climate recovery
Improved weather and renewed investment helped Mozambique’s sugar exports rebound to US$36 million in 2024 after previous cyclone impacts.
MOZAMBIQUE – Mozambique’s sugar export revenue rose to US$36 million in 2024, marking a 50% increase from the US$24 million recorded in 2023, according to the latest balance of payments report issued by the country’s central bank.
The report attributes the growth to a recovery in production following extreme weather conditions that had previously disrupted operations.
Mozambique, among the world’s most climate-vulnerable nations, frequently experiences floods and tropical cyclones during its rainy season, which runs from October to April.
In 2023, production volumes were significantly affected by cyclone damage. However, improved weather conditions in 2024 facilitated a rebound in sugar output, leading to greater export volumes and revenues.
The province of Sofala, in central Mozambique, remains one of the regions most impacted by recurring storms.
The Mafambisse Sugar Mill, located in Sofala’s Dondo district, had previously reported a decline in output due to extreme weather and the loss of approximately 8,000 hectares of sugarcane in Nhamatanda.
The mill, with a production capacity of 92,000 tonnes per year, is one of the country’s key sugar facilities.
To strengthen the sector, Tongaat Hulett, the majority shareholder in the Mafambisse and Xinavane sugar mills, recently announced an investment of ZAR500 million (€25 million) into both facilities.
The capital injection aims to boost productivity, modernize operations, and ensure long-term sustainability in the face of ongoing climate challenges.
In a complementary development, Mozambique’s parliament approved an extension of the Value Added Tax (VAT) exemption on commercial transfers of sugar, edible oils, and soaps until December 31, 2025.
The tax relief also covers raw materials and equipment used in their production. Authorities expect the exemption to lower production costs, stimulate economic growth, and improve consumer purchasing power.
The combined effects of improved climatic conditions, foreign investment, and supportive fiscal policy have contributed to the sector’s rebound and renewed optimism for continued growth in Mozambique’s sugar industry.
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