TANZANIA – The Tanzanian government has proposed legal amendments to empower the National Food Reserve Agency (NFRA) to buy, stock, and reserve sugar as a national food reserve, ensuring its availability in the domestic market during shortages.
Minister for Finance, Dr. Mwigulu Nchemba, stated that this measure aims to maintain a constant supply of sugar and prevent hoarding by manufacturers while protecting local industries. The NFRA regulations will be amended to include sugar as part of food security.
Additionally, Dr. Nchemba proposed a charge of Tsh50 (US$0.019) per kilogram of sugar by-products. This measure is intended to boost revenue and empower the Sugar Board to enhance training and capacity building in the sugar industry. It will also support monitoring sugar production through the expansion of existing industries and encouraging new investments.
Tanzania faces a significant sugar deficit, with production reaching 460,049 tonnes in 2022/23 against a demand of about 800,000 tonnes for the 2023/2024 financial year.
Prime Minister Kassim Majaliwa announced initiatives to increase sugar production by 53.5 percent over the next two years, aiming to address this shortage.
Presenting budget estimates for the forthcoming financial year, Mr. Majaliwa revealed that the government plans to ramp up production to 700,000 metric tonnes by the end of the 2025/26 financial year.
As part of this effort, Tanzania will introduce a project in Kilombero District, Morogoro Region, to produce sugarcane seedlings on a 400-hectare block farm, among other initiatives.
Earlier this year, the Ministry of Agriculture authorized the NFRA to import over 300,000 tonnes of sugar to mitigate the crisis.
Last year, the government inaugurated the Mkulazi sugar factory, which has a production capacity of 50,000 metric tonnes, to help meet regional demand.
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