The government is courting a new investor to establish a sugar factory expected to meet up to 50 per cent of national demand, the Minister of Trade and Industry, Prudence Sebahizi, has said.
Sebahizi made the remarks on Tuesday, June 9, while presenting the Industrial Policy 2024–2034 before the Chamber of Deputies, where lawmakers raised concerns over the country’s continued reliance on sugar imports.
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The discussion was triggered by MP Jean Claude Ntezimana, who questioned why local production remains low despite the presence of a domestic sugar factory.
"The factory we have produces only 10 per cent of sugar. What can be done to address this, and what are the key challenges? Is it a shortage of land for sugarcane or other factors?” he asked.
In response, Sebahizi said the country currently relies on a single producer, Kabuye Sugar, whose output has declined over time due to limited expansion of sugarcane plantations.
"The factory has been there for a long time, but its production and sugarcane plantations have not expanded significantly. It once covered about 45 per cent of national consumption, but this has now dropped to around 10 per cent,” he said.
He noted that the decline is not due to reduced capacity, but rising demand and the absence of new large-scale producers in the sector.
"As no new factories have been established over time, imports have increased to meet growing domestic demand,” he added.
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The minister said the government is now engaging potential investors to expand local production and reduce import dependence.
"We are working with different companies to ensure we have two or three producers. One of them is a Kenyan company, Rai,” he said.
According to Sebahizi, the investor is expected to sign an agreement with the government and be allocated land in Nyagatare District for large-scale sugarcane cultivation and processing.
"The company will be allocated land to operate. It is expected to help meet up to 50 per cent of national consumption. This is a long-term investment that will take at least four years,” he said.
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He added that the selected land will not interfere with other development activities in the district. The investor has requested about 11,000 hectares.
Sebahizi said the project is expected to boost local production, reduce sugar imports, create jobs, and support value-added by-products such as ethanol and green energy from factory waste.
Rwanda’s sugar imports declined in 2025, reflecting a shift in consumption and supply patterns, according to the Ministry of Trade and Industry.
The country imported 195,610 tonnes of sugar worth $145 million (about Rwf212 billion) in 2025, down from 308,000 tonnes valued at $238 million (about Rwf348 billion) in 2024.