Rwanda eyes $50m investment in sugar production
The Rwandan government plans to allocate 8,000 hectares for sugarcane cultivation, aiming to boost local production and attract $50 million in private investment. Prioritizing high-yield varieties and efficient processing, Rwanda seeks to enhance self-sufficiency while maintaining strategic imports. With trade agreements and industrial incentives, the country aims to become a regional sugar processing and distribution hub.
The government is set to allocate 8,000 hectares of land for sugarcane cultivation as part of its efforts to boost local sugar production.
Authorities aim to attract at least $50 million in private investment to develop the sector, enhance processing capacity, and reduce reliance on sugar imports.
This initiative is expected to create jobs, drive economic growth, and strengthen the country’s self-sufficiency in sugar production.
“Rwanda’s land constraints limit large-scale sugarcane farming, making full self-sufficiency difficult,” Minister of Trade and Industry Prudence Sebahizi, told The New Times.
“However, the government is prioritizing productivity improvements on existing plantations by promoting high-yield sugarcane varieties, efficient irrigation, and better farm management.
Additionally, Rwanda applies the EAC Common External Tariff (CET) and safeguards to ensure fair competition between local producers and imports, he said.
“To maintain affordability while protecting local industries, Rwanda allows strategic sugar imports under managed quotas,” Sebahizi said.
The government is also encouraging investments in sugar refining and value addition, enabling capacity to process and distribute sugar efficiently within the region.
“This ensures that even with limited domestic production, Rwanda remains competitive in the sugar supply chain,” said the minister, adding that the country would continue to invest in its processing capacity.
“The government is focusing on enhancing processing capacity rather than becoming a major raw sugar producer. Trade agreements such as the AfCFTA, COMESA, and EAC frameworks allow Rwanda to process imported raw sugar and re-export refined products within the region, boosting industrialization and trade,” he noted.
“The government also supports sugar-related industries, such as ethanol and bio-energy production, to maximize economic benefits. Through incentives for private-sector investment and trade facilitation measures, Rwanda aims to position itself as a competitive sugar processing and distribution hub within the regional market,” Sebahizi said.
He also talked about the contribution of Rwanda’s broader industrialization and value-addition goals, particularly in agro-processing and manufacturing.
“Investing in sugar processing aligns with Rwanda’s industrialization agenda by creating jobs, reducing import dependency, and adding value to raw materials, he said.
“The development of refining and packaging facilities will strengthen Rwanda’s agro-processing sector, supporting industries.” he stated.
“Additionally, sugar processing contributes to broader manufacturing growth by enhancing supply chains and supporting downstream industries, by focusing on value addition rather than large-scale cultivation.”
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Source: The New Times
