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Vol 58 No 5

Published 3rd March 2017


Tanzania

Sour fate of sugar project

The government claims it wants self-sufficiency in sugar but importers seem once more to have triumphed

The demise of the sugar production company Bagamoyo EcoEnergy (BEE) after millions of dollars of investment over ten years is being seen as much as a test of President John Magufuli's development agenda as of Tanzania's receptiveness to foreign investment. Sugar is a highly political issue and BEE's supporters say it is a victim of special interests with strong political connections. For decades, governments have promised an end to expensive imports; they are subject to import duty scams and large-scale smuggling which hurt local estates and out-growers while creating big profits for traders who combine to manipulate supplies to force up prices.

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