Tanzania bans sugar imports again
Banned: Tanzania has previously banned sugar exports from Uganda claiming it was cheap sugar dumped on its market. PHOTO BY DENIS EDEMA
What you need to know:
- In January, Tanzania resumed issuing sugar permits to traders to import sugar from Uganda as the country sought to close a 290,000-tonne supply shortage. Mr Japhet Hasunga then said the country was experiencing a shortage that urgently needed to be closed.
Kampala. A month after lifting the ban on sugar exports, Tanzania has again imposed another ban, this time putting a stop on the issuance of permits.
According to a statement from the Minister for Agriculture Japhet Hasunga, Tanzania will instead devise means to boost production to meet the internal demand.
“We have realised that sugar companies import sugar very fast, overlooking their role of producing; this is not acceptable, we think we should release them from importing sugar,” said Mr Hasunga, adding that a freeze on the issuance of permits will force sugar factories to concentrate on production.
He said the decision was reached after an assessment conducted by Deputy Agriculture minister Innocent Bashungwa and Permanent secretary Mathew Mtigumwe revealed the country’s companies were opting for importation over production.
Mr Hasunga said Tanzania has enough stock until May, and that permits will be issued to non-sugar producing companies from June to bridge the gap.
“Government will issue temporary permits to import between 25,000 and 28,000 tonnes of sugar,” he said.
Last year, Tanzania banned Ugandan sugar traders from its market, on claims that the sugar was from Kenya.
In January, Tanzania resumed issuing permits to traders to import sugar from Uganda, only to block it a month later.
Tanzania’s national annual sugar demand stands at 670,000 tonnes, against a production capacity of about 320,000 tonnes.
Production rose to 303,431.14 tonnes in the 2017/18 financial year, from 293,075 tonnes in 2015/2016.
Kenya has since last year been importing sugar from Uganda due to a supply shortfall.
Kakira Sugar assistant general manager Kenneth Barungi said that Uganda has the capacity to close the demand gaps in Kenya and Tanzania.
Kenya relies on the Common Market for Eastern and Southern Africa to plug an annual deficit of 350,000 tonnes.
Tanzania also has agreements to trade with countries from Comesa and the Southern African Development Community to plug its sugar supply gap.
Need to close shortage
In January, Tanzania resumed issuing sugar permits to traders to import sugar from Uganda as the country sought to close a 290,000-tonne supply shortage. Mr Japhet Hasunga then said the country was experiencing a shortage that urgently needed to be closed.
