Zimbabwe’s sugar industry is facing intense scrutiny from a Parliamentary committee, which has called for urgent reforms to address mounting cost pressures, market concentration, and a lack of transparency. A report by the Portfolio Committee on Industry and Commerce on the sugar value chain highlighted that the country is served by only two sugar mills – Hippo Valley and Triangle – both owned by Tongaat Hulett.
This concentrated market structure stands in stark contrast to other regional economies like South Africa and Egypt, which boast over 14 sugar mills each, according to the committee. The report, released today, September 26, 2026, noted a significant volume of uncommitted sugar for 2025, approximately 90,000 tonnes. Domestic sugar prices were reported at US$890-900 per tonne, considerably higher than the US$600 import parity level.
In response to these findings, Parliament has issued directives to the government, mandating an amendment to the 1964 Sugar Act by October 31, 2026. Further recommendations include the establishment of a new sugar mill in Mkwasine, the recapitalisation of the National Railways of Zimbabwe (NRZ), and the introduction of loans with interest rates below 15% by December 2026, all aimed at fostering competition and supporting farmers.
Key Players Involved
- Zimbabwean Parliament: Initiated the inquiry and issued directives for reform.
- Portfolio Committee on Industry and Commerce: Authored the critical report on the sugar value chain.
- Tongaat Hulett: Current owner of Zimbabwe’s two operational sugar mills, Hippo Valley and Triangle.
- Zimbabwean Government: Tasked with implementing the recommended legislative and economic reforms.
Event Timeline
- September 26, 2026: Parliamentary committee report on sugar industry released, detailing monopoly and high costs.
- October 31, 2026 (Deadline): Government directed to amend the 1964 Sugar Act.
- December 2026 (Deadline): Introduction of new sugar mill in Mkwasine, NRZ recapitalisation, and low-interest loans.
