RWANDA SEEKS $50 MILLION INVESTMENT TO BOOST SUGAR PRODUCTION AND REDUCE IMPORT DEPENDENCY
03 Mar 2025
Rwanda is strategically investing in its sugar production and processing capabilities to reduce import dependency, create jobs, and drive economic growth.
RwandaEconomic growthSugar production
Sugarcane Farm
The Rwandan government has announced plans to allocate 8,000 hectares of land for sugarcane cultivation as part of a broader strategy to enhance domestic sugar production and reduce reliance on imports. The initiative aims to attract at least $50 million in private investment to develop the sector, improve processing capacity, and create jobs, while driving economic growth and strengthening the country’s self-sufficiency in sugar production.
Despite Rwanda’s limited land availability, which poses challenges for large-scale sugarcane farming, the government is prioritizing productivity improvements on existing plantations. This includes promoting high-yield sugarcane varieties, efficient irrigation systems, and better farm management practices. “Rwanda’s land constraints make full self-sufficiency in sugar production difficult, but we are focused on maximizing productivity and value addition,” said Prudence Sebahizi, Rwanda’s Minister of Trade and Industry.
To balance the needs of local producers and consumers, Rwanda applies the East African Community (EAC) Common External Tariff (CET) and safeguards to ensure fair competition between domestic sugar and imports. The government also allows strategic sugar imports under managed quotas to maintain affordability while protecting local industries. “Our goal is to strike a balance between supporting local production and ensuring that sugar remains accessible to consumers,” Sebahizi explained.
In addition to boosting sugarcane cultivation, Rwanda is actively encouraging investments in sugar refining and value-added processing. By enhancing its refining capacity, the country aims to process imported raw sugar and re-export refined products within the region, leveraging trade agreements such as the African Continental Free Trade Area (AfCFTA), the Common Market for Eastern and Southern Africa (COMESA), and the EAC. “This approach allows Rwanda to position itself as a competitive player in the regional sugar supply chain, even with limited domestic production,” Sebahizi noted.
The government is also exploring opportunities in sugar-related industries, such as ethanol and bio-energy production, to maximize the economic benefits of the sector. Through incentives for private-sector investment and trade facilitation measures, Rwanda aims to become a hub for sugar processing and distribution in the region. “By focusing on value addition and industrialization, we can create jobs, reduce import dependency, and strengthen our agro-processing sector,” Sebahizi added.
The development of sugar refining and packaging facilities is expected to bolster Rwanda’s agro-processing industry and support downstream manufacturing activities. This aligns with the country’s broader industrialization goals, which emphasize value addition in agriculture and manufacturing. “Investing in sugar processing not only enhances our supply chains but also contributes to the growth of related industries, such as food and beverage production,” Sebahizi said.
Rwanda’s strategic focus on sugar processing and value addition reflects its commitment to economic diversification and regional trade integration. By leveraging its refining capacity and regional trade agreements, the country aims to reduce its reliance on raw material exports and instead focus on higher-value products. This approach is expected to strengthen Rwanda’s position in the global market while driving sustainable economic development.
As the government continues to implement these measures, the sugar sector is poised to play a key role in Rwanda’s economic transformation, contributing to job creation, industrial growth, and increased competitiveness in the regional and global markets.