Tanzania sugar producers resume operations as factories reopen

TANZANIA – Local sugar producers in Tanzania have resumed operations after months of production disruptions that contributed to nationwide shortages and increased reliance on imports, signalling a gradual recovery in domestic sugar supply. 

The resumption follows delays to the start of the 2026 production season, caused by prolonged rainfall, annual maintenance, technical challenges and the transition between production cycles.  

According to the Tanzania Sugar Producers Association (TSPA), the country’s sugar production season normally runs from May to April of the following year. However, heavy rains delayed harvesting and milling in key sugar-growing regions, postponing the start of this year’s campaign. 

The delayed restart coincided with declining sugar stocks from the previous production cycle, placing pressure on the domestic market and prompting the government to approve imports to bridge the supply gap. 

According to the Sugar Board of Tanzania (SBT), about 110,000 tonnes of sugar were approved for importation, with companies including Mohammed Enterprises Limited (MeTL), Kagera Sugar and Zenji Enterprises receiving import permits. The National Food Reserve Agency (NFRA) also participated in efforts to stabilise supply. 

The shortages pushed retail prices higher across several parts of the country. A survey by Mwananchi in late June found sugar prices had risen from about Sh2,800-Sh3,000 per kilogramme to as high as Sh5,000 in some areas. 

Industry players now expect market conditions to improve as factories rebuild production and replenish inventories. 

Chairman of the Board of Kilombero Sugar Company Limited, Ami Mpungwe, confirmed that the company’s new factory resumed production on July 7, while stock-building began on July 13 after overcoming initial operational challenges. 

“We have resumed production and will soon pick up, and there will be availability of sugar,” Mpungwe said. 

He added that one of the initial hurdles was securing sufficient sugarcane supplies because farmers took time to respond to requests to deliver cane for processing. 

Bakhresa Group Director of Communications Hussein Sufiani also confirmed that the company’s sugar operations had resumed in early July after resolving initial technical challenges. 

“All factories have now started production,” he said. 

The Sugar Board of Tanzania previously attributed part of the delayed production season to prolonged rainfall, while industry players also cited maintenance shutdowns, commissioning activities and technical issues.  

At Kilombero, the new K4 factory was not ready to begin crushing during the previous production cycle, while the older plant remained idle pending its replacement. 

According to figures presented in Parliament by Industry and Trade Minister Judith Kapinga, Tanzania’s seven sugar factories have a combined installed capacity of about 800,000 tonnes annually, compared with domestic demand of approximately 550,000 tonnes. However, production reached only about 410,979 tonnes by April 2026. 

An SBT Director General said all local sugar factories had resumed operations except Mkulazi Holding Company. “Only one factory, Mkulazi, has not yet started production. It is also expected to start this week,” he said. 

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