Zimbabwe Parliament calls for sugar industry reforms and mill competition

A parliamentary committee in Zimbabwe has recommended sweeping reforms to the nation’s sugar industry to address market concentration, high production costs, and financing difficulties.

A report by the Portfolio Committee on Industry and Commerce highlighted a lack of competition, noting that the sector is dominated by two mills—Hippo Valley and Triangle—both owned by Tongaat Hulett. This contrasts sharply with regional neighbors like South Africa and Egypt, which possess over 14 mills each. To foster competition, the committee suggested the installation of an additional mill at Mkwasine and a review of the market structure by the Competition and Tariff Commission.

To support sugarcane out-growers, the committee proposed establishing a concessional financing facility by December 2026 with interest rates below 15%. Currently, some farmers face rates as high as 60% due to insecure land tenure. The committee also urged the Ministry of Lands and Rural Development to provide bankable land-tenure instruments to at least 70% of out-growers within two years.

Other critical issues identified include rising costs for electricity, water, and fertilizer, as well as high transportation expenses following the collapse of rail services. The committee recommended that the Mutapa Investment Fund recapitalize the National Railways of Zimbabwe by the end of 2026 to improve cane distribution.