Government to set up second Sugar factory

In a bid to curtail the shortage of Sugar in the country, the government will construct another sugar factory and also woo investors willing to invest in sugar processing. Currently the country only has one sugar factory – Kabuye Sugar works – with a capacity of around 11 and 12 tonnes per month. Francois Kanimba, the Minister of Trade and Industry on Friday said that the option, which is a long term strategy to address sugar shortage in the country, will help the country become self reliant in sugar thus reducing on the import- export deficits. “There is need to increase domestic production of sugar and the plan now is to set up other industries,” he said, adding that the government has received promising investors who are asking for land to invest in sugar processing. Despite the government setting the ceiling price of Rwf800 on Kabuye Sugar August last year, the prices have surged by Rwf 100. Kanimba is also optimistic that the investment in sugar milling will help reduce the country’s dependence on imported sugar which is expensive and unreliable. Rwanda imports over 73 percent of the country’s required 40,000 tonnes. However, Emmanuel Hategeka, the Permanent Secretary in the Ministry of Trade, warned traders to desist from hiking prices of imported sugar noting that the government has intervened to reduce costs in importation. “There is no reason for traders to increase prices because they are now importing sugar at a low price,” he noted. Vianney Mugabo, a retailer, said that wholesale traders are hoarding sugar so that they can cut the supply to increase prices, adding that retailers, who buy directly from Kabuye, sell Sugar at Rwf 800. dias.nyesiga@newtimes.co.rw