Zimbabwe Sugar Producers Anticipate Market Rebound in 2024

Zimbabwean producers are optimistic about the rise in demand for locally manufactured sugar for the incoming financial year

Sugar producers in Zimbabwe expect an improvement in demand for locally made sugar in 2024/25 season as consumers who migrated to imports are expected to resume local procurement. Following the publication of Statutory Instrument 80 in May 2023, domestic market sales for various players in the industry experienced immense pressure. Hippo Valley, for instance, recorded a 16% decline in sales from 338,059 tons in 2022 to 283,289 tons in 2023. At the same time, Goldstar Sugars (GSS) sales dipped to 55,799 tons from 82,321 tons in 2022/23.

Despite the repeal of Statutory Instrument 80 in January 2024, imported sugar brands enjoyed an unfair cost advantage over locally-produced sugar during an eight-month period. This advantage stemmed from imported sugar not being fortified with Vitamin A as mandated by law, among other factors. The local market experienced reduced purchasing power due to inflation, with price emerging as a crucial factor influencing consumer behavior. Consequently, the availability of cheaper duty-free and non-fortified sugar imports led to a decline in the market share of locally-produced sugar.

Continuous engagements with the relevant authorities during the eight-month period resulted in the reinstatement of import duty on sugar and other basic commodities with recovery only having commenced towards the end of the financial year, owing to high stocks of imported sugar in the country. To date, the market share of locally produced sugar remains on the recovery path.