Parly Committee to assess challenges in Zimbabwe’s...

Parly Committee to assess challenges in Zimbabwe’s sugar industry

Zimbabwe Sugar Association Experiment Station (ZSAES) – Serving the ...

Oral evidence session on today

The Portfolio Committee on Industry and Commerce will gather oral evidence from the Ministry of Industry & Commerce and the Ministry of Lands, Agriculture, Water, Fisheries & Rural Development today, Tuesday, 15 July, at 10 a.m. in Committee Room 7, New Parliament Building. The focus: the full sugar industry value chain—from production to consumption.

Delta vs Local Producers: Claims of Substandard, Costly Sugar

Delta Corporation, a major beverage manufacturer, has accused local sugar producers like Goldstar and Tongaat Huletts of delivering “poor-quality sugar” that fails to meet international standards—a claim taken up before Parliament this week. zimbabwenow.co.zw
Delta’s Finance Director, Alex Makamure, highlighted cost concerns, noting imported sugar can be sourced at US $800/tonne plus a 30 % surtax, compared to US $890–900/tonne from local suppliers before a sugar tax, which adds US $100/tonne. He warned that these factors are “a key determinant to the viability of our business” and have forced producers to raise product prices by up to 45 %.

Delta stressed that imported sugar often delivers better quality and consistency—claiming that local suppliers have “failed to meet the quantity and quality requirements.” This issue prompted coordination between Delta and the ministries to consider supplementing supply with imports

Not so sweet waters

In May 2025, Minister Ndulovu emphasized plans to introduce new sugarcane milling players to break Tongaat Hulett’s monopoly—calling for improved yields (currently ~40 t/ha vs optimal 130–170 t/ha) to reduce production costs and lower sugar prices for consumers

In January, media reported that Tongaat Hulett Zimbabwe will lay off 1,000 workers across Hippo Valley and Triangle mills by August 2025 due to surging labor and fertilizer costs and currency instability—profit margins have dropped 55% since 2022, while labor costs rose 113%.
The company is simultaneously undergoing the sale of its Zimbabwe assets as part of its South African parent’s business rescue plan. This includes a transfer to the Vision Group/Ball Foundry consortium, which recently received regulatory clearance in both Zimbabwe and South Africa.
According to ZBC News, the takeover is seen as an opportunity to improve operational management, restore farmer confidence, and boost yields from the current 90 t/ha to potentially 115 t/ha.

Why the sugar discussion matters

Consumers battle steep price hikes on staple products like Mazoe.
Manufacturers face rising costs and supply instability.
Producers & farmers must raise yields, modernize, and adapt to new ownership.
Workers face job losses amid restructuring.
Policy makers need to balance safeguarding local capacity and ensuring affordability/import complementarity.

The committee’s recommendations will be essential for revisiting the sugar tax and surtax framework, enforcing quality and consistency standards, implementing the new entrants, and regulating market competition, as well as ensuring labor protections and farmer support during this transformation.