Starafrica Corporation has stated that it will continue working with the Government to address the growing threat of illegal sugar imports, disrupting Zimbabwe’s sugar value chain.
Despite the Government’s repeal of Statutory Instrument 80 of 2023, which took effect on February 1, 2024, allowing sugar imports, refined sugar is still entering the market illegally.
Local sugar producers remain hopeful that the reintroduction of import duties on sugar will be enforced effectively to stabilise the domestic market.
“We will continue to engage authorities through the Zimbabwe Sugar Association to protect the local sugar industry from sugar dumping by regional producers,” said Starafrica Corporation chairman Dr Rungamo Mbire in a statement accompanying the company’s half-year financial report for the period ending September 30, 2024.
Zimbabwe’s sugar manufacturers argue that there will be no need for duty-free sugar imports in the future if strong local production and milling performance are maintained.
Zimbabwe Sugar Association secretary-general Ms Tracy Mutaviri raised concerns about challenges facing the industry, including unfortified sugar imports from neighbouring countries, despite sufficient local supply.
She pointed out that Statutory Instrument 120 of 2016 requires all sugar sold in Zimbabwe to be fortified with vitamin A. However, unfortified sugar continues to enter the country, undermining efforts to ensure product quality and safety.
“We face unfair competition from unfortified sugar imports. Zimbabwe is one of only nine countries in the world that fortify sugar, and this costs us about US$9–10 per tonne. Allowing non-fortified sugar puts us at a cost disadvantage. We should be protecting local funds instead of importing sugar,” Ms Mutaviri said.
She added that details about locations where smuggled sugar is sold had been provided to authorities, but no action had been taken so far.
Meanwhile, Starafrica Corporation reported a major turnaround during the half-year period, posting a profit of ZiG25.6 million, compared to a loss of ZiG86.9 million in the same period last year.
The company’s revenue rose by 37 per cent, increasing from ZiG381.8 million to ZiG523.9 million, driven by higher sales volumes and cost-saving measures introduced across the business.
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