Tanzania assures sugar supply stability amid factory shutdowns, policy overhaul 

TANZANIA—Tanzania has assured consumers that there will be no sugar shortages this season despite several manufacturers temporarily suspending production for routine maintenance.  

The government attributes this assurance to newly implemented policies and strategic planning aimed at preventing a recurrence of past supply crises. 

In previous years, seasonal factory shutdowns triggered sharp increases in sugar prices. During the same period in 2023, sugar sold for as much as TZS 10,000 (US$3.71) per kilogramme in some areas, following widespread shortages.  

Currently, prices remain stable, averaging TZS 3,000 (US$1.11) per kilogramme nationwide. 

The government’s strategy marks a shift from earlier practices where sugar producers were allowed to import sugar during the off-season. That policy was revoked after supply constraints and erratic pricing were observed, particularly following disruptions caused by El Niño rains in October 2023.  

The new responsibility for sugar importation and stockpiling has been transferred to the National Food Reserve Agency (NFRA), a move aimed at maintaining year-round availability and price stability. 

Agriculture Minister Hussein Bashe announced the policy change during the presentation of the ministry’s TZS 1.249 trillion (US$468.8M) budget for the 2024/25 fiscal year. Parliament formally endorsed the change on June 24, 2024, through amendments to the Finance Bill 2024. 

The Sugar Board of Tanzania confirmed that 650,000 tonnes of sugar are currently in storage, with 150,000 tonnes designated as strategic reserves stored in NFRA facilities. 

Director General Kenneth Bengesi emphasized that the buffer stock is intended to bridge short-term supply gaps and will only be released when necessary. 

According to Bengesi, decisions to release the reserve stock will depend on real-time market conditions. If local production is adequate, the reserve remains intact for future emergencies.  

He added that all factories are expected to resume operations by June, except for Kagera Sugar, which continues to operate at reduced capacity due to localized rainfall. 

Despite government reassurances, Kilombero Sugar Company board chair Ami Mpungwe raised concerns about an oversupply of imported sugar affecting domestic producers.  

He noted that duty-free and tax-free imports were undermining the competitiveness of locally produced sugar and making it difficult for manufacturers to meet their financial obligations. 

As of March 31, 2025, total sugar stockpiles included 55,838 tonnes at TPC, 45,996 tonnes at Kilombero, 40,544 tonnes at Kagera Sugar, and 5,221 tonnes at Bagamoyo.  

Mpungwe stated these figures indicate no additional imports are necessary before the new production season begins. 

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