Rwanda seeks new sugar factory investor as government targets 50% domestic demand coverage 

RWANDA – Rwanda is seeking a new investor to establish a sugar factory that could meet up to 50% of the country’s domestic demand, as the government moves to reduce reliance on imports and strengthen local production. 

Minister of Trade and Industry Prudence Sebahizi disclosed the plans while presenting the Industrial Policy 2024–2034 before the Chamber of Deputies, where lawmakers raised concerns about the country’s continued dependence on imported sugar. 

The discussion was prompted by MP Jean Claude Ntezimana, who questioned the low level of local production despite the existence of a domestic sugar producer. 

“The factory we have produces only 10 per cent of sugar. What can be done to address this, and what are the key challenges? Is it a shortage of land for sugarcane or other factors?” Ntezimana asked. 

In response, Sebahizi said Rwanda currently depends on Kabuye Sugar, whose contribution has declined over the years because sugarcane plantations have not expanded significantly. 

“The factory has been there for a long time, but its production and sugarcane plantations have not expanded significantly. It once covered about 45 per cent of national consumption, but this has now dropped to around 10 per cent,” he said. 

According to the minister, the decline reflects rising domestic demand rather than a reduction in production capacity. 

“As no new factories have been established over time, imports have increased to meet growing domestic demand,” he added. 

Sebahizi revealed that the government is in discussions with several companies to increase the number of sugar producers in the country. 

“We are working with different companies to ensure we have two or three producers. One of them is a Kenyan company, Rai,” he said. 

He noted that the investor is expected to sign an agreement with the government and receive land in Nyagatare District for sugarcane cultivation and processing. 

“The company will be allocated land to operate. It is expected to help meet up to 50 per cent of national consumption. This is a long-term investment that will take at least four years,” Sebahizi said. 

The project is also expected to create jobs and support the production of value-added products, including ethanol and green energy generated from factory waste. 

According to the Ministry of Trade and Industry, Rwanda imported 195,610 tonnes of sugar worth US$145 million in 2025, compared with 308,000 tonnes valued at US$238 million in 2024. 

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