Tanzania is stepping up efforts to attract domestic and foreign investors into its sugar industry as rising demand and stagnant production push the country to rely increasingly on costly imports.
Planning and Investment Minister Kitila Mkumbo said on Feb. 23 that the government was courting investors to narrow a widening supply gap in the sweetener market. The initiative is being coordinated through the Tanzania Investment and Special Economic Zones Authority and forms part of the country’s long-term development blueprint, Vision 2050.
“We have an annual demand of 700,000 tons of sugar, of which the coming of these investors will definitely narrow down the sugar gap,” Mkumbo said in a statement.
Tanzania’s domestic sugar production has struggled to keep pace with consumption. According to data from the Bank of Tanzania, the country produced an average of 445,000 tons of refined sugar annually between 2020 and 2024, failing to exceed 500,000 tons in any of those years.
With annual demand now estimated at 700,000 tons, the production shortfall has widened to roughly 255,000 tons or more, forcing the country to turn to foreign suppliers to meet local needs.
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Trade data show imports have surged sharply. According to Trade Map figures, sugar imports nearly tripled from 186,498 tons in 2020 to 553,615 tons in 2024, reflecting growing domestic consumption and limited expansion in local refining capacity.
The financial burden of these imports has grown even more dramatically. The cost of sugar imports rose almost fivefold over the same period, reaching US$403.3 million in 2024. The spike was driven not only by higher volumes but also by elevated global commodity prices and freight costs during parts of the period.
Tanzania’s main sugar suppliers in 2024 were Brazil, United Arab Emirates, India, Saudi Arabia and Thailand.
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The widening trade deficit in sugar has raised concerns about food security and foreign exchange pressures. Analysts say sustained reliance on imports exposes Tanzania to global price volatility and supply disruptions, particularly during periods of international market tightening.
Officials argue that boosting domestic production would not only reduce import dependence but also create jobs, stimulate rural development and strengthen agro-industrial value chains. Expanding sugar output would require investment in new plantations, irrigation systems, milling capacity and transport infrastructure, as well as improved access to financing and technology for growers.
Under Vision 2050, Tanzania aims to become one of Africa’s top ten food-producing nations. The government sees the sugar industry as a strategic subsector with significant potential for import substitution and export growth if production capacity can be scaled up.
However, sector experts note that challenges remain, including land acquisition complexities, climate variability, high production costs and infrastructure bottlenecks. Addressing these structural constraints will be critical to attracting long-term private investment.
For now, policymakers are betting that a clearer investment framework and targeted incentives can revive the sector and gradually close the gap between domestic supply and demand, easing pressure on the country’s import bill and strengthening food self-sufficiency.
