Tanzania's National Assembly has approved amendments to the International Sugar Agreement of 1992, a move designed to expand value addition across the country's sugar sector and create new commercial opportunities. The amendments, agreed by member states of the International Sugar Organisation at its 59th meeting on November 26, 2021, broaden the agreement's scope to encompass products derived from sugar production, including ethanol, electricity and fertiliser.
Agriculture Minister Daniel Chongolo told parliament that the changes reflect developments in international trade and technology, as well as the growing economic importance of sugar by-products. Ratification will increase the value of these by-products, benefiting producers, farmers and the wider economy, Mr Chongolo said. Tanzania will gain access to research services and new technologies for producing sugar and related products, creating opportunities to improve productivity and competitiveness. The amendments affect Articles 1, 25, 32, 33 and 34 of the agreement, with Article 1 revised to strengthen international cooperation and improve the collection and sharing of market information on sugar and sweeteners.
Special Seats MP Yustina Rahhi highlighted that changes to Article 25 will introduce new criteria for determining member states' contributions and voting rights, based on sugar production, export capacity, imports, consumption and ability to pay. This means Tanzania's contribution and voting strength will reflect the actual situation of its sugar sector, Ms Rahhi said. She argued the amendments would strengthen research and cooperation among member states, enabling them to identify new opportunities in sugar production and marketing.
Manonga MP Abubakar Omari noted that domestic sugar production has increased since 2017, with the sugar deficit declining from 31 per cent to six per cent, while investment in the sector has reached 3 trillion Tanzanian shillings. However, he cautioned that taxation arrangements needed to support the development of sugar-derived industries. Mr Omari particularly urged the government to review the taxation of ethanol, noting that manufacturers are required to pay tax as soon as the product is manufactured, even before it is sold or used as an industrial raw material, which could tie up working capital.
According to Mr Chongolo, 47 of the organisation's 85 member states have ratified the amendments so far. The deadline for completing the ratification process is January 1, 2027. The amendments are expected to create investment opportunities and facilitate access to new technologies while strengthening international cooperation in addressing challenges facing the global sugar industry.