Rwanda steps up efforts to boost local sugar production, cut imports
Rwanda is taking steps to boost local sugar production and reduce import dependence, which currently meets 92.5% of national demand. In 2024, the country imported 308,000 tonnes of sugar worth \$238 million—a 24% increase from 2023. To address this, the government plans to allocate 8,000 hectares for sugarcane farming and attract \$50 million in private investment for processing. Meanwhile, Rwanda continues to apply reduced import duties to ease consumer costs amid limited domestic supply.
The government is exploring ways to increase domestic sugar production to cut heavy reliance on imports, according to the Ministry of Trade and Industry.
Data from the ministry shows that Rwanda imported 308,000 tonnes of cane/beet sugar and chemically pure sucrose valued at $238 million (over Rwf340 billion) in 2024 (representing an increase of 24 per cent, up from $192 million in 2023).
Currently, domestic sugar production accounts for approximately 7.5 per cent of Rwanda’s total demand, with the remaining 92.5 per cent being met through imports, the Minister of Trade and Industry, Prudence Sebahizi, told The New Times.
“This heavy reliance on external supply highlights the strategic imperative to boost local production and reduce the economic impact associated with high import volumes,” he said.
Indeed, due to high dependence on imported sugar, Rwanda has been staying the application of the East African Community (EAC) External Tariff on sugar, among other “strategic” foodstuffs, to apply a lower rate and reduce the cost of such items for consumers, according to the Ministry of Finance and Economic Planning.
In the current fiscal year, sugar imports are charged a 25 per cent duty, which is a quarter of a 100 per cent rate or $460 per tonne (whichever is higher) under the EAC tariff.
In line with addressing the gap, the government is planning to allocate 8,000 hectares of land for sugarcane cultivation and attract at least $50 million (over Rwf73 billion) in private investment to strengthen processing capacity and boost local sugar production, the Ministry of Trade and Industry indicated earlier this year.
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Source : The New Times
