Zambia: Sugar export to EU increase

  1. Posted on Saturday 5 June 2010 - 12:41
    nawa_mutumweno
    Nawa Mutumweno, AfricaNews reporter in Lusaka, Zambia
    Exports of sugar from Zambia to the European Union increased from 30,000 to 135,000 tonnes following the removal of the quota trading system.
    Sugar_cane
    The commissioning of the K1 trillion Nakambala Sugar Estate Expansion Project has resulted in increased production by 100 percent. The expansion, that started April 2007, included upgrading of the existing factory – Zambia Sugar - construction of roads and canals as well as planting sugarcane on over 10 000 hectares of additional land.

    Beginning April 1, 2009, the factory commenced full production from the previous 246 000 tonnes to 440 000 tonnes with 135 000 tonnes being exported to the European market. 130 000 tonnes will be for the Zambia market while 120 000 tonnes will cater for the booming regional markets.

    “Our exports to the EU are expected to increase to around 200 000 tonnes in about three years while production capacity of the plant will rise to 465 000,” said Zambia Sugar’s corporate affairs manager Lovemore Sievu.

    The expansion project was primarily based on the trading regime change in the European market, growth in regional markets such as the Democratic Republic of Congo (DRC) and also the diversification in the bio fuel sector with the need to be self-reliant in the supply of electricity.

    Under the Everything But Arms (EBA), the EU has given African, Caribbean and Pacific (ACP) countries duty free and quota free access to the European markets. With the coming of the Economic Partnership Agreements (EPAs), the quota system will be removed and countries will export whatever tonnage of commodities they can supply.

    With the removal of the quotas in the EU markets, foreign exchange earnings for the country will increase. Growth in regional markets is also envisaged.

    It is focused that lower prices of EU sugar exports, which became effective last October following new EU sugar market reforms, would be offset by increased market access since Zambia was now allowed duty free and quota free entry into the lucrative market.

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