TANZANIA – Tanzania’s National Food Reserve Agency (NFRA) has announced plans to spend TSH 202 billion (US$74M) to purchase 92,000 tonnes of sugar in an effort to stabilize prices and ensure adequate supply.
The initiative is aimed at preventing unnecessary price hikes due to supply shortages or reliance on imports.
According to Andrew Komba, NFRA’s chief executive officer, the sugar acquisition will be overseen by the Sugar Board of Tanzania (SBT).
The agency is also preparing to improve its storage facilities to effectively manage the additional sugar stock.
“This will automatically provide a buffer when stocks run low, and sugar has to be imported,” Komba explained.
As part of its broader strategy to expand its storage capacity, NFRA is planning to acquire 19 warehouses from the Tanzania Initiative for Preventing Aflatoxin Contamination (TANIPAC).
Additionally, the agency intends to build 12 new warehouses with a combined storage capacity of 50,000 tonnes, while renovating six existing storage towers located in Sumbawanga, Dar es Salaam, Songea, and Arusha.
Currently, NFRA’s storage capacity stands at 365,000 tonnes. The agency aims to double this by June 2024, with a long-term target of reaching a capacity of 3 million tonnes by 2030.
This move comes as the Tanzanian government reaffirms its commitment to supporting sugar factory owners to boost local production and foster a favorable investment climate.
Minister of Industry and Trade, Selemani Jafo, emphasized President Samia Suluhu Hassan’s dedication to ensuring stability in the sugar industry.
In July, the Tanzania Sugar Producers Association (TSPA) revealed that local producers have initiated expansion projects aimed at meeting the country’s sugar demand by the end of the 2024-25 fiscal year.
The Bagamoyo Sugar Factory, for instance, is undergoing expansions that will increase its annual output by 20,000 tonnes, bringing the total to 100,000 tonnes.
Tanzania’s annual sugar consumption stands at 800,000 tonnes.
The government is working towards meeting this demand domestically by 2027, with local production already increasing to 460,200 tonnes in 2023, up from 300,000 tonnes in 2015.
The country aims to boost sugar production to 706,000 tonnes by 2025-2026.
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