Nationwide Meals Reserve Company to spend US$74M on sugar as buffer in opposition to worth will increase  | Meals Enterprise Africa

TANZANIA – Tanzania’s Nationwide Meals Reserve Company (NFRA) has introduced plans to spend TSH 202 billion (US$74M) to buy 92,000 tonnes of sugar in an effort to stabilize costs and guarantee sufficient provide.  

The initiative is aimed toward stopping pointless worth hikes as a result of provide shortages or reliance on imports. 

In keeping with Andrew Komba, NFRA’s chief govt officer, the sugar acquisition might be overseen by the Sugar Board of Tanzania (SBT).  

The company can be getting ready to enhance its storage services to successfully handle the extra sugar inventory.  

“This may robotically present a buffer when shares run low, and sugar must be imported,” Komba defined. 

As a part of its broader technique to increase its storage capability, NFRA is planning to accumulate 19 warehouses from the Tanzania Initiative for Stopping Aflatoxin Contamination (TANIPAC).  

Moreover, the company intends to construct 12 new warehouses with a mixed storage capability of fifty,000 tonnes, whereas renovating six current storage towers situated in Sumbawanga, Dar es Salaam, Songea, and Arusha. 

Presently, NFRA’s storage capability stands at 365,000 tonnes. The company goals to double this by June 2024, with a long-term goal of reaching a capability of three million tonnes by 2030. 

This transfer comes because the Tanzanian authorities reaffirms its dedication to supporting sugar manufacturing facility house owners to spice up native manufacturing and foster a good funding local weather.  

Minister of Trade and Commerce, Selemani Jafo, emphasised President Samia Suluhu Hassan’s dedication to making sure stability within the sugar trade. 

In July, the Tanzania Sugar Producers Affiliation (TSPA) revealed that native producers have initiated growth tasks aimed toward assembly the nation’s sugar demand by the top of the 2024-25 fiscal yr.  

The Bagamoyo Sugar Manufacturing unit, as an example, is present process expansions that may enhance its annual output by 20,000 tonnes, bringing the entire to 100,000 tonnes. 

Tanzania’s annual sugar consumption stands at 800,000 tonnes.  

The federal government is working in the direction of assembly this demand domestically by 2027, with native manufacturing already rising to 460,200 tonnes in 2023, up from 300,000 tonnes in 2015.  

The nation goals to spice up sugar manufacturing to 706,000 tonnes by 2025-2026.