Zimbabwe calls for cheap finance, new mill to strengthen sugar industry
Zimbabwe’s Parliament has proposed cheaper financing, improved infrastructure and greater milling competition to strengthen the sugar value chain and improve farmers’ access to credit
ZIMBABWE – Zimbabwe’s Parliament has called for a broad package of measures to strengthen the country’s sugar value chain, including concessional financing, improved transport infrastructure, greater milling competition and better access to credit for sugarcane out-growers.
The recommendations were contained in a report by the Portfolio Committee on Industry and Commerce, presented to the National Assembly by committee chairman Cde Clemence Chiduwa following an inquiry into the sector.
The committee recommended that the Ministry of Finance, Economic Development and Investment Promotion, working with the Reserve Bank of Zimbabwe (RBZ), establish a concessional financing facility by December 2026. The facility should offer interest rates below 15% to sugar value-chain businesses to support refining operations, working capital and expansion.
The committee also proposed measures to improve financing for sugarcane out-growers. It recommended that the Ministry of Lands and Rural Development provide bankable land-tenure instruments to at least 70% of out-growers within two years, enabling farmers to use their land rights to access credit.
Transport infrastructure was another priority. The committee urged the Mutapa Investment Fund to recapitalise the National Railways of Zimbabwe (NRZ) by December 31, 2026, to improve the transportation of sugarcane and distribution of finished sugar.
It also called on the Zimbabwe National Water Authority and Zimbabwe Electricity Supply Authority to prioritise the sugar industry and provide uninterrupted water and electricity supplies.
To increase competition in milling, the committee recommended that the Ministry of Industry and Commerce facilitate the installation of an additional mill at Mkwasine, with capacity of between 5,000 and 10,000 tonnes of cane per day.
The Competition and Tariff Commission was also asked to review the sector’s market structure and assess the feasibility of another sugar mill.
Zimbabwe’s sugar milling industry is currently dominated by Tongaat Hulett, which operates as the country’s sole major sugar milling company.
The committee recommended that the government review sugar taxation and fortification policies by December 31, 2026, while maintaining public-health objectives and considering the competitiveness of domestic producers.
It also urged the Ministry of Industry and Commerce to require imported table sugar to meet the same Vitamin A fortification standards applied to locally produced sugar.
The committee said domestic producers face fortification costs and the sugar tax, while imports from countries without equivalent requirements may enter Zimbabwe without comparable costs.
“The sugar value chain in Zimbabwe remains a critical pillar of the economy with strong potential for growth and value addition,” the committee said.
However, stakeholders cited macroeconomic instability, high input costs, infrastructure deficits and institutional inefficiencies as constraints on competitiveness.
The committee recommended amendments to the Sugar Production Control Act and called for coordinated action by government, industry players and other stakeholders to support a more sustainable and competitive sugar value chain.
