Online Reporter
Farirai Machivenyika
Senior Reporter
Parliament has urged the Government to introduce cheap financing initiatives to assist sugar cane farmers as part of measures to grow the sugar value chain and enhance the sector’s contribution to national development.
This was said by the Parliament’s Portfolio Committee on Industry and Commerce in a report tabled in Parliament by Committee Chairman Cde Clemence Chiduwa following its inquiry into the sugar value chain.
The committee also recommended amendments to the Sugar Production Control Act to take into account current trends in the sector.
“The Ministry of Finance, Economic Development and Investment Promotion, in collaboration with RBZ, should establish a concessional financing facility by December 2026, offering interest rates below 15 percent for sugar value chain players to support refining operations, which require substantial capital investments for running costs and for expansion,” the report read.
The Committee also urged the Mutapa Investment Fund to expedite the recapitalisation of the National Railways of Zimbabwe (NRZ) as part of cutting costs in the transportation of the sugar value chain.
“The Mutapa Investment Fund must recapitalise the National Railways of Zimbabwe (NRZ) to enhance efficiency in the transportation of sugarcane as well as distribution of the final product by 31 December 2026.
“The Ministry of Lands and Rural Development should issue bankable land tenure instruments to at least 70 percent of out-grower farmers within two years to improve access to credit.”
The committee also called on ZINWA and ZESA to prioritise the sugar industry and commit to uninterrupted supplies of water and electricity, respectively.
“The Ministry of Industry and Commerce must install an additional mill in Mkwasine with a production capacity of between 5 000 and 10 000 tonnes of cane per day to reduce transport costs and introduce competition in the milling segment,” the report further reads.
The committee also called on the Competition and Tariff Commission to review the market structure and recommend measures to enhance competition, including the feasibility of an additional mill.
It further recommended that the Ministry of Finance, Economic Development and Investment Promotion should, by 31 December 2026, review the sugar tax and fortification policies to balance public health goals with industry competitiveness.
The committee also urged the Ministry of Industry and Commerce to incorporate Vitamin A fortification as a requirement when issuing permits for table sugar imports, saying the legal requirements for local players to fortify their product and the sugar tax make locally produced sugar more expensive compared to imported sugar that does not face similar requirements in their countries of origin.
The country’s sugar milling is a monopoly owned by Tongaat Huletts.
“The sugar value chain in Zimbabwe remains a critical pillar of the economy with strong potential for growth and value addition,” it said.
“However, stakeholders submitted that its competitiveness is constrained by macroeconomic instability, high input costs, infrastructure deficits and institutional inefficiencies.
“The Committee is of the view that addressing these challenges requires coordinated efforts from Government, industry players and stakeholders. With appropriate reforms and investments, the sugar industry can significantly contribute to national development and industrialisation goals.
“The Committee therefore urges all stakeholders to act on the recommendations outlined in this report to ensure a sustainable, competitive and inclusive sugar value chain in Zimbabwe.”
