Tanzania moves closer to sugar self-sufficiency as production capacity surpasses domestic demand
Tanzania is nearing sugar self-sufficiency, with 800,000 tonnes of annual production capacity exceeding domestic demand of 550,000 tonnes. Expansion projects at Kilombero and Mkulazi mills are boosting output and could create 8,500 direct and 25,000 indirect jobs, while reducing import dependence.
Tanzania is edging closer to achieving self-sufficiency in sugar production, with the country’s installed production capacity now exceeding its annual domestic requirement. Expansion projects at key sugar factories and rising output are helping the East African nation reduce its long-standing dependence on imported sugar.
Presenting the 2026/27 budget for the Ministry of Industry and Trade before the National Assembly in Dodoma, Industry and Trade Minister Judith Kapinga said the sugar industry continues to play a central role in Tanzania’s industrial and economic development plans, Tanzania Insight reported.
The country currently has seven sugar manufacturing plants operating across different regions. These include Kilombero Sugar, Tanganyika Planting Company in Kilimanjaro, Kagera Sugar, Mtibwa Sugar Estates, Mkulazi Holding Company, Manyara Sugar and Bagamoyo Sugar. Combined, the factories have an installed production capacity of 800,000 tonnes per year, well above Tanzania’s annual sugar consumption of around 550,000 tonnes.
The sector has continued to record growth in production. By April this year, sugar output had reached 410,979 tonnes, reflecting steady progress toward meeting domestic demand through local production.
Apart from contributing to food security, the sugar industry remains an important source of employment. The sector currently supports about 28,500 direct jobs and nearly 95,000 indirect jobs, providing income opportunities for thousands of families, particularly in rural areas.
To further strengthen domestic production, the government has focused on expansion projects at two major sugar mills. Kilombero Sugar is undertaking a major capacity enhancement project that will increase annual production from 123,000 tonnes to 226,000 tonnes. Trial production at the upgraded facility has been completed successfully, and commercial operations are expected to begin this month.
At Mkulazi Holding Company, new industrial sugar production equipment has been installed to meet growing domestic industrial demand and reduce imports. Trial operations have already produced 256 tonnes of industrial sugar, marking an important step toward local production of a product that has traditionally been sourced from abroad.
The completion of these projects is also expected to boost employment. According to Minister Kapinga, the expanded operations could generate an additional 8,500 direct jobs and around 25,000 indirect employment opportunities.
Tanzania’s efforts to achieve sugar self-sufficiency form part of a wider strategy aimed at strengthening local industries, reducing imports and supporting agricultural-based manufacturing. The sugar sector is seen as a key component of this approach, linking factory operations with sugarcane cultivation and supporting thousands of farmers involved in the supply chain.
The government’s goal is to meet the country’s entire sugar requirement for both household consumption and industrial use through domestic production. Achieving this target would help reduce spending on imports, improve food security and potentially create opportunities for Tanzania to supply sugar to regional markets.
While installed capacity already exceeds national demand, the focus now shifts to ensuring factories operate efficiently and that adequate sugarcane supplies are available to support the expanded processing facilities. The performance of the industry in the coming months will determine how quickly Tanzania can fully realize its self-sufficiency ambitions.
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Source : ChiniMandi
