Tanzania’s sugar producers are forecasting a rise in output while reaffirming their commitment to long-term market stability. The industry is optimistic to maintain sufficient domestic supply and to expand exports across regional markets.
According to the Tanzania Sugar Producers Association (TSPA), total sugar availability is expected to reach at least 350,000 tonnes by the end of the 2025-26 season, a figure projected to comfortably meet national demand and help stabilize prices.
TSPA Executive Secretary Kennedy Rwehumbiza told The Citizen that the country’s seven active producers—TPC Moshi, Kagera Sugar Limited, Mtibwa Sugar Estate, Kilombero Sugar Company, Bagamoyo Sugar Limited, Manyara Sugar Company, and Mkulazi Holding Company—collectively produced over 340,000 tonnes of brown sugar between May and September 2025.
“This output represents 147 percent of the estimated national demand for the first five months, which stands at around 230,000 tonnes. Compared to the same period last year, production has increased by 54 percent, reflecting strong recovery and efficiency in the sector,” he said.
The improved production has helped stabilize sugar prices, now ranging between Sh2,600 and Sh3,000 per kilogramme. “With 80 percent of the sugar sold locally, consumers are enjoying consistent supply and fair pricing. This stability demonstrates better coordination across the value chain and producers’ responsiveness to market needs,” Rwehumbiza added.
On exports, Tanzania has made progress in regional trade. By mid-October 2025, the country had exported approximately 85,000 tonnes of sugar. Producers plan to strengthen exports to Kenya, the Democratic Republic of Congo (DRC), Rwanda, and other regional markets, reported The Citizen.
Industry players say these exports highlight the sector’s growing competitiveness and alignment with Tanzania’s industrialization goals, positioning sugar as both a key food product and a strategic export commodity.
This growth is supported by strong investments from existing and new players, reinforcing the sector’s resilience. TSPA data show that Kilombero Sugar Company is advancing its K4 project, which will add 144,000 tonnes annually upon completion, pushing its total output beyond 270,000 tonnes. Meanwhile, Kagera Sugar Limited is expanding cane cultivation and upgrading operations to more than double its current production of 140,000 tonnes by the 2029/30 season, creating new employment opportunities and driving rural economic growth.
Other producers, Mtibwa, Bagamoyo, and Mkulazi, are also channeling heavy investments into expansion to boost supply and diversify output.
Rwehumbiza noted that the industry’s growth is drawing new investors, with four new entrants—Golden Sugar, Lake Agro, Mufindi Paper, and Eagle-Agrotech, joining the market. “Their arrival reflects increasing investor confidence and the success of government policies in promoting a competitive and sustainable agribusiness environment,” he said.
