Molasses market in Tanzania

Earlier Report Observations

The molasses market volume in Tanzania contracted from 105.5 thousand tonnes in 2018 to 64.6 thousand tonnes in 2023, primarily driven by a substantial increase in exports, which rose from 3.5 thousand tonnes to 36.7 thousand tonnes over this period. Industry investment plans emerged in 2019 when TPC Limited announced a Sh112.5 billion project to construct a new molasses processing plant, signaling a long-term expansion of production capacity.

Domestic molasses output remained stable around 97 thousand tonnes between 2018 and 2020 before gradually increasing to 101.2 thousand tonnes by 2023. The continued rise in exports, particularly in 2023, aligns with the broader sugar industry's strategic goal to boost production and become a regional exporter, which elevated the availability of molasses for foreign markets. Concurrently, steady demand from the local alcohol manufacturing and animal feed sectors provided underlying support for consumption.

In 2024, adverse weather conditions contributed to a reported 14% decline in sugar production, which likely constrained the supply of molasses as a by-product. The same year saw the operational launch of the Tanzania Mercantile Exchange, an online trading platform designed to enhance market transparency and efficiency for agricultural commodities, potentially affecting supply chains and pricing dynamics for molasses.

Production molasses in Tanzania

In kind, 2017-2020, t

Top producers of molasses, 2017-2020

World map of production of molasses, 2017-2020

In Tanzania, molasses production remained relatively stable in 2020, reaching 97 295 tonnes with minimal year-over-year change. Over the period from 2017 to 2020, production grew by 5.2%, representing a compound annual growth rate of 1.7%. The highest production level was recorded in 2018 at 97 663 tonnes, which saw the largest annual increase of 5.6%. In contrast, 2019 experienced the most significant decline of 0.4%.

Annual dynamics of production in Tanzania in kind, 2017-2020, t

Exports molasses from Tanzania

Exports in kind, t

The market displayed an unstable trend throughout the analyzed period. Export volumes reached their lowest point in 2018 at 3 491 tonnes, then peaked in 2020 at 23 954 tonnes, representing a 6.9-fold difference between these extremes. The year 2020 saw a sharp increase of 69.8% compared to the previous year. The most substantial decline occurred in 2018 with a drop of 49.4%, while the largest increase was recorded in 2019 at 304.2%.

Annual dynamics of product's exports from Tanzania in kind, 2017-2020, t

From 2017 to 2020, Uganda and Kenya were the primary destinations for Tanzania's molasses exports in kind. Uganda accounted for 85.6% of total export flows, while Kenya represented 14.4%, together comprising the entire export volume.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Tanzania in kind, 2017-2020

Exports in value, K $ US

The data reveals irregular fluctuations, indicating a volatile market environment. Export values varied significantly, with a low in 2017 and a peak in 2018, showing an 8.4-fold difference between these years. In 2020, Tanzania's molasses exports totaled 1 300 thousand US dollars, marking a substantial increase of 112.5% compared to 2019. The highest value was recorded in 2018 at 3 736 thousand US dollars, which saw the largest annual increase of 735.2%. The most significant decline occurred in 2019 with a drop of 83.6%.

Annual dynamics of product's exports from Tanzania in value, 2017-2020, K $ US

Throughout the 2017-2020 period, Uganda dominated Tanzania's molasses exports in value terms, consistently accounting for 91.4% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Tanzania in value, 2017-2020

Imports molasses to Tanzania

Imports in kind, t

The market exhibited an unstable trend throughout the timeframe. Import volumes dropped to their minimum in 2019 at 276 tonnes, then climbed to their maximum in 2018 at 11 295 tonnes, representing a 41-fold shift between these years. In 2020, Tanzania imported 2 233 tonnes of molasses, reflecting a sharp increase of 709.0% compared to the previous year. The most substantial decline was recorded in 2019 with a drop of 97.6%.

Annual dynamics of product's imports to Tanzania in kind, 2017-2020, t

Between 2017 and 2020, Kenya, Zambia, and Sudan were the main suppliers of molasses to Tanzania in kind. Kenya accounted for 49.9% of imports, Zambia represented 25.4%, and Sudan contributed 24.1%, together comprising 99.5% of total import volumes.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Tanzania in kind, 2017-2020

Imports in value, K $ US

The data reveals irregular changes, pointing to a volatile market environment. Import values dropped to their minimum in 2019 at 14 thousand US dollars, then climbed to their maximum in 2018 at 870 thousand US dollars, showing a 63-fold shift between these years. In 2020, Tanzania imported 101 thousand US dollars worth of molasses, equivalent to a steep increase of 628.5% compared to the previous year. The largest decline was recorded in 2019 with a drop of 98.4%.

Annual dynamics of product's imports to Tanzania in value, 2017-2020, K $ US

From 2017 to 2020, Kenya, Zambia, and Sudan played leading roles in Tanzania's molasses imports in value terms. Kenya accounted for 38.3% of imports, Zambia represented 30.7%, and Sudan contributed 30.0%, jointly taking 99.1% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Tanzania in value, 2017-2020