HARARE – Sugar processor Tongaat Huletts has expressed concerns over the negative impact of cheaper sugar imports on the local industry in Zimbabwe.
The company stated that the importation of seventeen different brands during the tenure of Statutory Instrument 98, implemented by the government, compromised the local market share and estimated a 5% impact on annual local sugar sales volume.
Tongaat’s chairman, Canaan Dube, highlighted that imported sugar often has an unfair price advantage due to lower production costs in other countries and the potential non-compliance with labeling and fortification regulations.
The recently introduced Statutory Instrument 80 of 2023 aims to address high prices in the market, but it is expected to pose further challenges to the local sugar industry.
Despite the competition from imports, Tongaat Huletts maintained a 52.3% share of the total industry sugar sales volume for the year, and export sales increased by 15% with improved volumes to the USA.