Rwanda is moving to strengthen its domestic sugar industry by seeking a new investor to establish a large-scale sugar factory that could supply up to half of the country's sugar demand, according to Trade and Industry Minister Prudence Sebahizi.

The announcement was made during a presentation of the Industrial Policy 2024-2034 before the Chamber of Deputies, where lawmakers raised concerns over the country's continued dependence on imported sugar despite having an existing local producer, The Newtime reported.

Questions were raised about why domestic production remains limited and whether factors such as land availability were restricting industry growth. Responding to lawmakers, Sebahizi said Rwanda currently relies on a single sugar producer, Kabuye Sugar, whose contribution to the market has steadily declined as demand has grown.

According to the minister, Kabuye Sugar once supplied nearly 45 percent of the country's sugar requirements. However, its share has now fallen to around 10 percent because sugarcane cultivation and production capacity have not expanded at the same pace as national consumption.

He noted that the decline in market share does not reflect reduced production capacity at the factory, but rather the rapid increase in domestic demand and the absence of additional large-scale sugar producers. As a result, Rwanda has increasingly turned to imports to bridge the supply gap.

To address the challenge, the government is engaging several potential investors with the goal of establishing additional sugar producers and reducing reliance on imported sugar. One of the companies currently in discussions is Kenyan-based Rai.

Sebahizi said the investor is expected to sign an agreement with the government and receive land in Nyagatare District for sugarcane cultivation and sugar processing operations. The project is expected to play a significant role in boosting domestic production and could eventually meet up to 50 percent of Rwanda's total sugar demand.