Govt sugar import ban bears fruit

Sugar producers increased sales by 22 percent in the last quarter, taking advantage of government’s ban on imported sugar.

Production rose to 19 percent in the 3 months to December 2024.

Producers reduced exports by 53 percent to ride on strong local demand, Hippo Valley Estates says.

Despite the growth, Hippo has announced job cuts to reduce costs.

The government, had initially lifted the import ban on sugar and other commodities in 2023 to combat rising inflation.

This policy opened the market to at least 17 foreign sugar brands, which disrupted the local industry by undercutting prices and reducing market share for domestic producers.

Imported sugar is cheaper due to subsidies provided by foreign governments to their producers, hence import was a huddle to local producers.

In contrast, Zimbabwean producers face higher production costs, making it difficult to compete without protective measures.

Zwnews