Tanzania’s NFRA to begin sugar imports to boost buffer stocks
TANZANIA – The National Food Reserve Agency (NFRA) of Tanzania has announced plans to begin importing sugar within two months, following directives from the Sugar Board of Tanzania (SBT).
The imports aim to establish buffer stocks, stabilize sugar supply, and guard against potential price fluctuations and emergencies.
Dr. Andrew Komba, NFRA’s chief executive officer, revealed that preparations are already underway, with storage facilities being arranged in Dar es Salaam and Mwanza. These locations were chosen due to their large populations and susceptibility to supply disruptions.
“SBT has instructed us to prepare for imports starting in March,” Dr. Komba said. “The board has promised to issue an import permit by that time.”
The NFRA plans to import at least 92,000 tonnes of sugar under the supervision of relevant authorities.
In addition to imports, the agency will source sugar from domestic suppliers. This approach aims to address potential shortages and prevent price spikes, ensuring a stable supply across the country.
The move to involve the NFRA in sugar imports comes after allegations of misconduct by some sugar planters. Reports revealed that these producers had been importing sugar, repackaging it as locally produced, and selling it at inflated prices.
To address these challenges, Finance Minister Dr. Mwigulu Nchemba, during the 2024/2025 budget discussions, called for increased transparency in the sugar industry. He demanded that producers disclose their production costs and publish lists of regional distributors.
The government also announced plans to phase out monopoly distribution, which currently involves only five agents nationwide.
This initiative marks a shift from the policies implemented eight years ago when sugar imports were halted, leading to a significant price increase. In remote regions, prices soared from 2,000/- to as high as 7,000/- per kilogram.
Tanzania, East Africa’s third-largest sugar producer, is working to achieve self-sufficiency in sugar production by 2027.
The government has made significant progress, with local production rising to 460,200 tonnes in 2023, up from 300,000 tonnes in 2015. By 2025-2026, the country aims to produce 706,000 tonnes of sugar annually.
Efforts by local producers, including the Bagamoyo Sugar Factory, are contributing to this goal. The factory’s expansion project is set to increase its annual output by 20,000 tonnes, bringing its total production to 100,000 tonnes.
Tanzania’s annual sugar consumption stands at 800,000 tonnes.
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