The Government of Rwanda is intensifying efforts to boost local sugar production and reduce the country’s near-total dependence on costly sugar imports.
According to the Ministry of Trade and Industry, domestic production currently meets only 7.5% of national demand, forcing Rwanda to import the remaining 92.5% at a high economic cost.
In 2024 alone, Rwanda imported 308,000 tonnes of sugar, spending $238 million (over Rwf340 billion), up from $192 million in 2023.
This rising import bill has strained foreign currency reserves and led the government to keep sugar under a reduced import tax rate, diverging from the East African Community’s (EAC) standard 100% external tariff.
To reverse this trend, the government plans to, allocate 8,000 hectares of land for sugarcane farming in the Eastern Province.
Attract at least $50 million (over Rwf73 billion) in private investment to expand sugar processing capacity.
And partner with existing investors to develop new sugar production facilities.
Trade Minister Prudence Sebahizi said feasibility studies and land suitability assessments are ongoing. Some of the proposed areas for sugarcane farming may require expropriation, which will be handled in compliance with local laws and community consultation protocols.
The ministry is also negotiating with interested investors with a proven interest in the sugar sector. Final investment and production capacity decisions will be based on the outcomes of these studies.
Kabuye Sugar Works, the only operational sugar factory in Rwanda, is currently producing only 12,000–13,000 tonnes annually, despite having a capacity of 17,000 tonnes. This shortfall is largely due to flooding, which has damaged sugarcane plantations and disrupted supply.
The factory, owned by Madhvani Group Rwanda, is working with the government to:
Secure flood-free land in nearby districts such as Bugesera, Kamonyi, and Rwamagana.
Establish a new sugar plant capable of producing 60,000 tonnes of sugar annually, as well as ethanol, which could replace up to 90% of Rwanda’s ethanol imports.
Joel Uwizeye, Corporate Affairs Director at Madhvani Group, emphasized the company’s commitment to long-term investment in Rwanda but identified land availability as a key bottleneck.
