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Agribusiness

Rwanda : the country aims to attract $50 million in private investment to boost sugar processing

The Rwandan government is set to allot 8,000 hectares of land for sugarcane farming as part of a comprehensive initiative aimed at to boost local production. The objective is to secure no less than $50 million in private funding to stimulate sugar processing and curtail reliance on imports.

By
Aissatou Amirah
Published: 11 March 2025
Last updated: 11 March 2025
2 Min Read
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Rwanda : the country aims to attract $50 million in private investment to boost sugar processing

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This is a structuring project aimed at achieving self-sufficiency in sugar. Faced with land constraints limiting large-scale cultivation, Rwanda is looking for innovative solutions to improve the productivity of existing plantations. According to Prudence Sebahizi, Minister of Trade and Industry, as reported by local newspaper News Time, the government is focusing on high-yielding sugarcane varieties, efficient irrigation and optimized farm management. This initiative is part of a broader strategy to industrialize the country, focusing on job creation, value chain optimization and the development of related industries. The aim is to maximize yields from smaller areas and guarantee a stable supply of sugar for local and regional markets.

Market regulation to ensure competitiveness

To protect local producers, while maintaining affordable prices, Rwanda applies the Common External Tariff (CET) and regulatory mechanisms to control imports. “To ensure fair competition, the government authorizes strategic imports under controlled quotas,” explains Minister Sebahizi. This approach aims to balance supply and demand, while avoiding overheated prices on the domestic market.

Rather than seeking to become a major producer of raw sugar, Rwanda is concentrating on processing and adding value. The establishment of refining and distribution facilities will enable the country to process imported raw sugar and re-export it to other regional markets.” Thanks to trade agreements such as AfCFTA, COMESA and EAC, we can position ourselves as a regional hub for sugar processing and distribution“, emphasizes Prudence Sebahizi.

An engine for industrialization and economic improvement

The government is not limiting its ambitions to sugar refining alone. It is also encouraging the development of ancillary industries, such as ethanol and bioenergy production, in order to exploit all the economic opportunities associated with this sector.” Investment in sugar processing is an integral part of our industrialization program. It creates jobs, reduces dependence on imports and adds value to local raw materials“, explains the Minister. By developing refining and packaging infrastructures, Rwanda is strengthening its agro-industrial sector, and paving the way for further integration into regional value chains.

 


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