Tanzania implements new regulations to stabilize sugar supply and control prices 

TANZANIA – Tanzania has introduced new regulations on sugar production, importation, and distribution, aiming to stabilize the sugar supply and control prices within its borders.  

The parliament has passed a bill containing amendments to the Sugar Industry Act, granting the National Food Reserve Agency (NFRA) exclusive authority to import, store, and distribute sugar for domestic consumption. 

According to Tanzania’s Finance Minister, Mwigulu Nchemba, the newly amended Sugar Act will help prevent arbitrary shortages, hoarding, and price inflation of sugar. 

“This amendment will monitor price stabilization. It is the government’s responsibility to intervene during market failures,” Nchemba stated. 

The amended Sugar Act gives the Sugar Board of Tanzania (SBT) discretion in issuing import licenses, which will not be granted unless the SBT is satisfied that local production is below the required level.  

Local producers must now declare their production costs and submit relevant information to the SBT at the beginning of every production season.  

Additionally, domestic manufacturers must declare and publish the names of their distributors in every region in a widely circulated Tanzanian newspaper at the start of each production season. 

The Act also directs the issuance of provisional licenses and the registration of sugar manufacturers, small-scale sugar plant operators, and industrial consumers through the SBT.  

The Tanzania Sugar Producers Association (TSPA) anticipates raising production to 663,000 tonnes by 2026 to meet local demand. 

TSPA Chairman Ami Mpungwe noted that sugar production had decreased significantly from 144,000 tonnes in 2017 to 30,000 tonnes in 2023, leading to acute shortages.  

Seven sugar factories were issued permits to import sugar in 2023 to address this gap, aiming to reduce retail prices. The government has spent approximately US$150 million importing sugar to cover the deficit. 

Due to shortages, retail prices have surged from Tsh2,800 (US$1.05) to Tsh4,000 (US$1.50) per kilo in shops across the country.  

In response, the government recently engaged with local sugar producers to address critical industry issues, including sugar production, importation, and recurrent price hikes. 

Earlier, the government proposed amending the Sugar Industry Act to grant the NFRA the exclusive mandate to import, store, and distribute gap sugar for domestic consumption.  

Following a meeting led by Tanzania’s Minister of State in the President’s Office, Kitila Mkumbo, the government assured manufacturers of its commitment to ensuring the safety and security of their investments. 

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