Kigali — The struggling Kabuye Sugar Works, Rwanda's only sugar manufacturer has posted a Rwf2.4 billion loss (about $3.5million) according to latest figures.

The firm is a subsidiary of the Madhvani Group of Companies based in Uganda. Management is blaming the recent floods that hit the country in March and April this year submerging 500 hectares of the firm's cane plantations located along River Nyabarongo.

Thiru Navukkarasu, the Kabuye General Manager, said due to the waterlogged fields about 500 out of 900 hectares of sugarcane was destroyed. He said 1448 hectares out of the 3148 hectares given to the factory by the government to increase production were also flooded in the same period.

This according to Navukkarasu, is as a result of poor drainage within the area which increases flooding. The floods accounted for around 35,000 tonnes of sugar cane loss which when crushed produces 3200 tonnes of sugar per year.

More sugar will have to be imported from Rwanda's neighbours' to make up the shortfall and this also means higher retail prices.

According to sources, the country's current sugar demand per year stands at 70,000 tonnes with local production from Kabuye at 11,000 tonnes per year,

Kabuye sugar sells at Rwf 800 compared to Rwf 1000-1200 for imported sugar brands.

With Dutch support of Euros 5 million (approximately Rwf4.9 billion), the government has promised to support increased local and solve the drainage problem.

Low production at Kabuye prompted the government last year to enter into talks with Mauritius investors to set up another sugar factory and offset the dependency on imports.