Tanzania’s sugar producers’ expansion projects to achieve surplus by 2025 

TANZANIA – Tanzania’s major sugar producers have unveiled ambitious projects aimed at meeting local demand and achieving a surplus in sugar production by the end of the 2024/25 fiscal year.  

Under the umbrella of the Tanzania Sugar Producers Association (TSPA), the industrialists outlined their ongoing expansion efforts in a press statement. 

The TSPA, which comprises five major sugar-producing firms in Tanzania—Kilombero Sugar Company Limited, Bagamoyo Sugar Limited, Kagera Sugar Limited, TPC Limited, and Mtibwa Sugar Estate Limited—highlighted the significant progress made in local sugar production.  

These expansions are expected to address the recurring sugar shortage that has previously led to soaring prices and affected local supply. 

As of 2023, local sugar firms contribute 93 percent of the total demand of 490,000 tonnes per year, producing 460,200 tonnes, up from about 300,000 tonnes in 2015.  

This increase is attributed to the collaboration between sugar firms and the government in safeguarding local investment and preventing irregular sugar imports. 

The TSPA noted that the friendly investment climate has enabled local investors to inject more capital into expanding their operations, significantly reducing the sugar gap to 30,000 tonnes by the end of last year, down from 144,000 tonnes in 2017.  

The association assured that the ongoing expansion projects would further increase production capacity, reaching between 528,000 and 663,000 tonnes by the 2025/26 fiscal year. 

Hussein Sufian, Director of Bagamoyo Sugar Limited, highlighted several key projects during a meeting with journalists organized by TSPA. Notably, the Bagamoyo sugar industry is expanding to double its production from 30,000 to 60,000 tonnes. 

Significantly, the Kilombero Sugar industry is undertaking a major expansion project worth TZS 744 billion (US$280.66M), including constructing a modern sugar plant set to raise production from 127,000 tonnes to 271,000 tonnes.  

The new facility in the Kilombero Sugar industry is scheduled to commence operations in July 2025.  

Additionally, sugarcane production at Kilombero will increase from 600,000 tonnes to 1.7 million tonnes, with the expansion of sugarcane farms expected to boost production from 131,000 tonnes to 230,000 tonnes over the next three production seasons. 

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