Tanzania hit by sugar shortage

"Having just one sugary drink a day lowers the chance of successful IVF by 12 per cent, the research adds." /FILE
"Having just one sugary drink a day lowers the chance of successful IVF by 12 per cent, the research adds." /FILE

Tanzania has been grappling with a shortage of sugar for over a month now.

Government and business accuse each other of creating the crisis, but many in the country believe it started with the decision of President John Magufuli in February to require sugar importers to obtain permits from State House.

The President said the importation process was marked by corruption, the market flooded with poor quality or adulterated products, and that the country had failed to protect local factories while importers grew rich.

"You find an officer issuing permits for sugar imports when local producers have enough sweetener for the market in that period," he said.

"Some of the imported sugar is of inferior quality compared to our locally-produced sugar, and some poses health risks to consumers. I thus direct that no permit be issued without my approval."

The intervention caused prices to double almost immediately.

Now, in many market places, sugar is sold at $1.05 a kilo, while in some places it goes for up to $2, three times the government's fixed price.

Tanzania's annual domestic sugar consumption is about 420,000 tonnes, while local production is 320,000 tonnes. This leaves a deficit of about 100,000 tonnes a year to be made up by imports.

Local producers have been complaining that rising imports have caused them cashflow problems while also threatening the livelihoods of 10,000 sugar cane growers.

The government is now accusing traders and distributors of hoarding, saying they have been creating an artificial shortage to justify price hikes. The business community rejects this.

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