THE government has reiterated its commitment to protecting investors and sugar factories by creating a good environment for investment and doing businesses.

Minister of State in the President’s Office (Planning and Investment), Prof Kitila Mkumbo told the National Assembly on Wednesday that the government is devoted to protecting investments in the country and that a number of reforms have been made to achieve the goal.

The minister was responding to some of the MPs’ concerns when winding up the debate on the National Development Plan 2024/25.

He refuted claims that the government was not doing enough to promote local sugar producers and that the measures taken aim at dwindling production and killing industries.

Prof Mkumbo said the government has invested heavily in the sector, saying so far 7.2bn/- has already been allocated for production of sugarcane seedlings that are distributed to sugarcane growers in various parts of the country.

He added that the government has also allocated 12.5bn/- for irrigation infrastructure for sugar cane farms in Kilimanjaro region.

He added that a feasibility study for an irrigation project is being conducted in Kilombero, Morogoro Region by an Ethiopian based company.

Prof Mkumbo informed the august house that the government has also exempted 244bn/- tax on sugar factories across the country, purposely to enable them operate profitably and produce more sugar.

“The government has been doing all these to promote sugar production and protect our local factories. Therefore, it is very disturbing when a person accuses the government of weakening local producers,” he said.

“The investment in sugar industries across the country is worth 4.2trn/-. This is a huge investment; killing this business means the government sabotaged itself which is impossible,” said Prof Mkumbo.

He reiterated the government stand that it is committed to protecting 

On Monday, MPs overwhelmingly supported the government’s proposal to give the National Food Reserve Agency (NFRA) powers to buy and store sugar to end recurrent price spikes.

Agriculture minister Hussein Bashe tabled the proposal last month when he presented his docket’s 1.249trn/- budget for 2024/25 in Parliament.

Since it required amendment of the law governing NFRA, the proposal is contained in the Finance Bill, 2024, which MPs debated last Monday.

Bashe informed Parliament that the sugar factories entrusted with importing the sweetener to cover for the shortfall in local production did not fulfil their responsibilities effectively.