Arabfields, Maleeka Kassou, East, West and Central Africa Agriculture Correspondent — Zimbabwe is looking to expand its sugar industry through cheaper financing, improved infrastructure and investment in new milling capacity, as policymakers seek to strengthen local production, support farmers and increase export earnings.

A parliamentary committee has called on the government to introduce concessional loans with interest rates below 15% by December 2026, targeting businesses across the sugar value chain. The proposed facility would support working capital, refining operations and industrial expansion, according to recommendations presented to the National Assembly.

The initiative comes as the country’s sugar sector faces rising production costs, infrastructure constraints and limited competition in milling, despite growing demand and opportunities in regional markets.

The industry recorded sugar production of about 443,500 tonnes in the financial year ended March 2026, while total sales reached nearly 472,000 tonnes, an increase of 24% from the previous year. Export sales more than doubled to approximately 92,500 tonnes, reflecting stronger demand outside the domestic market.

For farmers in the Lowveld, where much of Zimbabwe’s sugarcane is grown, access to affordable credit remains a central concern. Smallholder and out-grower farmers require financing to purchase agricultural inputs, maintain irrigation systems and improve yields, but limited access to bank loans has constrained investment.

The parliamentary committee has recommended that authorities provide secure, bankable land-tenure documents to at least 70% of out-grower farmers within two years. Such documentation could allow farmers to use their land rights to obtain loans and finance improvements to their operations.

Improving transport infrastructure is another priority. The committee has urged the recapitalisation of the National Railways of Zimbabwe by December 31, 2026, to reduce transportation costs and improve the movement of sugarcane to mills and finished products to markets.

The proposals also include the installation of a new sugar mill at Mkwasine, with a processing capacity of between 5,000 and 10,000 tonnes of cane per day. The project is intended to increase competition in a milling industry dominated by Tongaat Hulett, the country’s principal sugar processor.

For cane growers and transport operators, additional milling capacity could mean shorter delivery distances, reduced waiting times and more reliable access to processing facilities. However, the investment would require substantial capital and dependable supplies of water and electricity.

The government has also been urged to review sugar taxation and fortification policies, with local producers arguing that compliance costs can make domestic products less competitive against imports. Parliament has called for imported table sugar to meet the same vitamin A fortification standards as locally produced sugar.

Zimbabwe’s longer-term development strategy sets out plans to increase annual sugar production to 500,000 tonnes by 2035, from a baseline of about 400,000 tonnes. Ethanol production is targeted to rise to 600 million litres annually, while electricity generation from the sugarcane industry is expected to reach 200 megawatts.

If financing, infrastructure and milling reforms are implemented, the industry could expand production and exports over the coming years. The US Department of Agriculture forecasts sugar output of 457,000 tonnes for the 2026/27 marketing year, reflecting expected growth in cane production and improved milling performance.

Meeting the longer-term targets will depend on investment in farming, reliable utilities and the timely delivery of the proposed reforms. For thousands of farmers and workers whose livelihoods depend on the sector, the outcome will shape both household incomes and employment opportunities in Zimbabwe’s sugar-producing regions.