Tanzania’s sugar sector growth accelerates as investments boost production, stabilize market
Collaborations with private investors and new technologies are driving Tanzania’s sugar sector growth and securing future export opportunities.
TANZANIA – Tanzania’s sugar sector is experiencing strong growth, supported by new investments and partnerships with private investors and innovators, a senior official has said.
According to Prof. Kenneth Bengesi, director general of the Sugar Board of Tanzania (SBT), the collaborative approach has stabilized supply chains, normalized prices, and restored consumer confidence.
Speaking at the Sugar Stakeholders Forum organized by the Tanzania Society of Sugar Cane Technologists (TSSCT) at the National Sugar Institute in Kilosa, Morogoro Region, Prof. Bengesi stated that Tanzania is firmly on course to eliminate sugar shortages.
He highlighted that the sector’s transformation is creating a profitable environment for investors while driving the country towards self-sufficiency and export readiness.
Sugar production in Tanzania has risen significantly, from 295,000 tonnes in 2018 to 460,000 tonnes in 2023. This growth is attributed to factory expansions, increased acreage under cultivation, and improved conditions for smallholder farmers.
Bengesi also pointed to government initiatives such as fertilizer subsidies, enhanced access to bank loans with interest rates below 10%, and incentives through the Tanzania Investment Centre (TIC) as critical enablers of sector growth.
He revealed that new sugar factories in Bagamoyo and Mkulazi have commenced production, while upcoming projects by Lake Agro (Rufiji), Kasulu, Mufindi Paper Mills (Iringa), and Golden Sugar (Kagera) are expected to begin operations within two years.
Kilombero Sugar’s new K4 plant, launched in June following a TZS 730 billion (US$271.9M) investment, is set to double the company’s production capacity.
Meanwhile, Kagera Sugar has increased output to 170,000 tonnes, with projections to reach 200,000 tonnes annually.
TSSCT Secretary Mwanaidi Jaffery noted that the sector is now filling the national sugar supply gap and attracting unprecedented levels of investment.
He also emphasized that expanded training programs for farmers and technicians at the National Sugar Institute are contributing significantly to the sector’s success.
TSSCT President Fihiri Achi called for greater focus on innovation and technology transfer to enhance smallholder farmer productivity.
He advocated for the development of affordable, semi-mechanized tools to modernize cane harvesting and replace outdated practices such as field burning.
In support of these efforts, Tanzania’s Agricultural Research Institute (TARI) launched a strategic initiative in March to produce and distribute 600 tonnes of high-yielding sugarcane seed varieties, including Tarica 1, Tarica 2, and R 570.
These seeds are disease-free and drought-tolerant, offering higher yields to farmers across the country.
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