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China-Africa Trade Information Service
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Tanzania recently announced that it is now issuing permits to traders to import sugar from Uganda as the country is hit by a 290,000-tonne shortage.
Tanzania produces about 300,000 tonnes of raw sugar annually, leaving a high demand gap, and last year the country stopped issuing new permits for importation of sugar to protect local producers and traders.
“The country is currently experiencing a shortage and needs to fill the gap,” said Tanzania’s Minister of Agriculture Japhet Hasunga.
With a population of more than 50 million, the country’s annual sugar consumption is estimated at 590,000 tonnes, of which 135,000 tonnes are for industrial consumption and 455,000 for domestic use.
According to Mr Hasunga, sugar production in Tanzania rose to 303,431.14 tonnes in the financial year 2017/2018, from 293,075 tonnes in financial year 2015/2016.
Sugar in Tanzania comes mainly from four companies: Kilombero Sugar Company, majority owned by South Africa’s Illovo Sugar, Mtibwa, Kagera, and TPC, a unit of Mauritius sugar producer Alteo.
More sugarcane plantations and factories are planned across the country to meet the growing demand.