Massive factory expansion and rising domestic production propelled by conservation efforts are pushing Tanzania toward sugar self-sufficiency.

 

The green sugar belt of Kilombero is a landscape under enormous pressure — and one where, over the past decade, a coalition of farmers, a sugar company, government agencies, and conservation practitioners has demonstrated that agricultural intensification, habitat protection, and equitable economic growth are not mutually exclusive.

It is here, in Morogoro region, that we find Kilombero Sugar Factory, a rapidly modernising facility boasting a Tsh744 billion ($290 million) expansion, backed by a strong cane production base.

Kilombero is a joint venture between Illovo Sugar Africa (75 percent) and the Tanzanian government (25 percent stake).

This particular factory operates as Illovo Sugar Africa's largest plant and the cornerstone of Tanzania’s push for sugar self-sufficiency.

Historically, the factory's production has been around 127,000 tonnes annually.

The company recently finalised a major factory expansion, the K4 project, more than doubling production capacity to roughly 271,000 tonnes per year.“Kilombero Sugar Company Ltd (KSCL) started way back in the 1960s with the first company K1 and later K2. The new factory was commissioned last year,” said Andrew Achola, outgrowers manager.“K1 was producing 40,000 tonnes per annum while K2 produced 80,000 tonnes. Kilombero holds an estimated 38 percent market share of Tanzania’s domestic sugar production, making it the single largest sugar manufacturer in the country.”Trial production at the upgraded facility has been completed successfully, and commercial operations have already begun.

This increase in output has boosted Kilombero's share of the national output, pushing it to contribute approximately 50 percent of all domestically produced sugar in Tanzania.

Tanzania currently operates seven major sugar-producing factories: Kilombero Sugar, Tanganyika Planting Company, Kagera Sugar, Mtibwa Sugar Estates, Mkulazi Holding Company, Manyara Sugar, and Bagamoyo Sugar.

By the end of April, total physical production had already reached 410,979 tonnes, placing the country firmly on track to meet and surpass its internal consumption requirements before the close of the fiscal year.”Apart from contributing to food security, the sugar industry remains an important source of employment. The sector currently supports about 28,500 direct jobs and nearly 95,000 indirect jobs, providing income opportunities for thousands of families, particularly in rural areas.

At its inception, Kilombero was a landmark project intended to end the country's reliance on sugar imports.

The factory situated in the wetlands of Kilombero valley invested in a massive $238.5 million expansion project to build a new, modern factory, which was commissioned and became operational to significantly boost Tanzania's domestic sugar production.“In terms of improvement, we have quite a number of interventions ranging from land development, seed development and multiplication to other interventions,” said Achola.“We have a number of contractors and a seed cane development scheme where we are using cane seedlings assembled through research. We are very intentional with the type of the yields we require. We are investing in cane varieties that yield more sucrose.”The factory compensates farmers using a revenue-sharing model based on sugarcane quality, sucrose levels. Farmers who deliver cane with higher sucrose content—and lower trash/impurities—secure better payouts as contrasted with Kenya's sugar sector, which pays a flat rate per metric tonne, regardless of sugar content.

Kilombero invested $523,000+ in conservation-linked activities, after donating its 1,254 hectares of farmland to expand a nature reserve, and double its average yields, all within a decade.

The African Wildlife Foundation AWF) engaged 6,000+ community members in governance forums and trained 6,137 farmers and leaders in sustainable land and water management practices.“We came to the factory and listened to their concerns and we then sat down and tailored solutions to fit into their scheme of doing things,” said Clarence Msafiri, AWF landscape m.“As a result, farmers increased production per hectare by 70 percent. Their income also increased, while demand for farming land dropped from 16,000 hectares to 10,000—a win-win for the land and farmers who depend on it.”To reduce wildlife habitat loss and promote climate resilience, AWF and partners in Kilombero trained sugarcane farmers in climate-smart land and water management and provided tonnes of drought-resistant seeds.

As Tanzania moves towards sugar self-sufficiency, East Africa is not yet fully sufficient with the exception of Uganda.

Total sugar production in 2025 in Kenya, Tanzania, Uganda, Rwanda, Burundi and South Sudan was 1.6 million tonnes, against an estimated consumption of 2.8 million tonnes.

Uganda is the premier surplus producer in East Africa, topping over 770,000 tonnes in brown sugar production. It has 46 factories, but only 15 factories really contribute to its sugar output. It is almost self-sufficient in white sugar.

In Kenya, up to 370,000 tonnes of sugar are expected to be imported over the current cycle to maintain market stability. The government has also utilised temporary EAC-approved duty waivers, such as the 10 percent duty window for industrial sugar, to protect domestic supply through June 30.

According to the US Department of Agriculture’s Foreign Agricultural Service (FAS) database, Nairobi forecasts a recovery in Kenya’s sugar production for marketing in the 2026/27 financial year.

With harvested area projected at 193,000 hectares and output increasing to 850,000 tonnes following a relaxing of government controls, government-owned players in the industry are transitioning to private operating leases under the Sugar Act 2024 to enhance processing efficiency.

National consumption is anticipated to grow 2.2 percent to 1.175 million tonnes, while reliance on imports is expected to decrease to 370,000 metric tons.

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