During week 28, sugar prices remained stable across Eastern and Southern Africa, except in Nairobi, where prices dipped by USD 9 per ton. The average wholesale sugar prices in major cities across the region were unchanged in local currency. Mogadishu continues to have the lowest price per ton at USD 696, due to the influx of world market raw sugar.
In Kenya, the import window for duty-free brown sugar from the World Market closed on June 30, 2024, for both Kenya and Tanzania. Uganda remains the only viable source for Kenyan and EAC importers, despite the negative parity margin due to high stock levels.
The Kulea vessel tracker flagged about five vessels at various destinations along the East and Horn of Africa coasts. SJ Lily is anchored at Dar es Salaam port, and another vessel, Doris, currently in India, is expected to load about 30,000 tons of Brazilian re-bagged raws and sail to Tanzania. These are the last ships allocated to Tanzania for this year.
Overall, the Nairobi market saw a modest dip in VHP sugar prices, while the rest of the EAC markets remained stable. This stability indicates minimal currency fluctuations and good stock levels from local production and imports in the region. Maintaining stable prices amidst global and local dynamics is crucial for stakeholders in the East African sugar market.