Tanzania targets sugar, edible oil output growth in 2026/27 strategy to cut imports
Tanzania plans major investments in sugar and edible oil production to reduce imports, boost exports, and strengthen food security under its 2026/27 agricultural strategy.
TANZANIA – Tanzania has unveiled a comprehensive plan to address recurring shortages of sugar and edible oil, with a broader production strategy set to be implemented in the 2026/27 financial year.
Presenting budget estimates before the National Assembly, Agriculture Minister Daniel Chongolo outlined ambitious targets to boost domestic production and reduce reliance on imports.
The government aims to increase national sugarcane production from 4.35 million tonnes in 2025/26 to 5.5 million tonnes in 2026/27. This is expected to raise sugar output from 410,979 tonnes to 550,000 tonnes.
To support this growth, the government plans to establish two new sugar factories in the Coast and Kigoma regions. In the Tanga Region, Chongolo said investment arrangements are underway for three additional factories, including one dedicated to industrial sugar and two for table sugar, which will also supply raw materials for industrial use.
The minister emphasized efforts to strengthen agricultural inputs, stating that the Tanzania Agricultural Research Institute will develop cane seed farms to ensure reliable supply. A 10-acre farm in Kilosa is expected to produce 400 tonnes of seed cane, while a five-acre farm in Mvomero will add 200 tonnes.
The Sugar Board of Tanzania will also prepare investment zones in the Pangani Basin, covering districts including Korogwe, Muheza, Handeni, and Pangani, with a combined area of 146,704 hectares.
On edible oil, the minister said the government would finalize and implement the National Edible Oil Strategy to address the country’s supply gap. He noted that Tanzania’s annual demand stands at approximately 731,974 tonnes, while domestic production is only 305,906 tonnes, leaving a deficit of 426,068 tonnes.
“To narrow this gap, the ministry plans to increase oilseed crop production from 2.24 million tonnes in 2024/25 to 2.3 million tonnes in 2026/27,” Chongolo said.
The government is also targeting growth in agricultural exports, aiming to increase earnings from US$3.54 billion in 2023/24 to nearly $4 billion by 2026/27, alongside the opening of 15 new export markets.
To strengthen food security, the National Food Reserve Agency will expand storage infrastructure across multiple regions.
Facilities under development in Songea, Makambako, Dodoma, Shinyanga, and Songwe will add 165,000 tonnes of capacity, with additional storage planned in Arusha and Sumbawanga.
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