Nile Sugar to invest US$450M in Uzbekistan sugar beet farming, processing plant 

UZBEKISTAN – Nile Sugar, a subsidiary of Orascom Group Holding and Egypt’s largest sugar producer, has announced plans to invest about $450 million in Uzbekistan to develop sugar beet farming and build a large-scale sugar processing plant in the Jizzakh Region. 

The project will be financed through direct foreign investment and is designed to cover the full production chain, from sugar beet cultivation to the processing of finished sugar. Uzbek officials say the initiative will be one of the country’s largest sugar sector investments to date. 

Laziz Kudratov, head of Uzbekistan’s Ministry of Investment, Industry and Trade (MIIT), said the planned facility is expected to produce up to 200,000 tonnes of sugar annually. He noted that the project would play a significant role in strengthening domestic sugar production capacity. 

Uzbekistan’s Minister of Agriculture, Ibrokhim Abdurakhmonov, said President Shavkat Mirziyoyev has instructed authorities to accelerate implementation of the project and place it under special oversight.  

“All the necessary documents have been prepared, land plots have been allocated, and the Egyptian company’s investments are already lined up,” Abdurakhmonov said. 

In 2024, the Ministry of Agriculture announced plans to expand cooperation with foreign partners in sugar production.  

As part of that strategy, land plots totaling 50,000 hectares were identified in the Gallaaral and Farish districts of Jizzakh Region for sugar beet cultivation, alongside 170 hectares allocated for the construction of a processing facility. 

The MIIT press service recently reported on talks between Minister Kudratov and Nile Sugar Chief Executive Officer Emad Farid. The discussions concluded with the signing of a protocol on the implementation of joint projects.  

According to the ministry, the document outlines steps to clarify project parameters, financing terms, and coordination mechanisms to advance cooperation. 

The investment comes amid rising concerns from local manufacturers over high sugar prices in Uzbekistan.  

Speaking at a government meeting on January 21, UzBev Association Executive Director Alfiya Musina described sugar costs as a “pain point for all local producers,” noting the impact on beverage and food manufacturers. Imported white sugar is currently subject to a 20% import duty. 

Deputy Prime Minister Jamshid Khodjaev said Uzbekistan is pursuing measures to stabilize supply and pricing. “We have two major sugar production projects. I hope that within two to three years we will be able to increase and stabilize local production,” Khodjaev said. 

Uzbekistan reinstated a 20% excise tax on imported white sugar in 2020 after a temporary suspension during the pandemic. Since 2021, the tax has remained in place, although excise duties on imported white sugar are set to be abolished from October 1, 2025, while customs duties will continue. 

According to the National Statistics Committee, Uzbekistan produced 165,500 tonnes of sugar between January and June 2025, down from 227,800 tonnes in the same period of 2024 and 332,600 tonnes in 2023. 

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