Egypt’s Nile Sugar to invest $450m in full-cycle sugar production in Uzbekistan

Speaking in an interview with Uzbekistan 24 TV channel, Minister of Investment, Industry and Trade Laziz Kudratov said that Nile Sugar is expected to begin implementing a $450 million project in Jizzakh from March. The initiative will be financed through direct foreign investment and will cover the full production cycle – from growing sugar beet to processing and producing finished sugar.

According to Kudratov, the plant’s projected annual output will reach up to 200,000 tons of sugar, making it one of the largest projects of its kind in the country.

Minister of Agriculture Ibrohim Abdurakhmonov noted that President Shavkat Mirziyoyev has instructed officials to accelerate the project’s implementation and place it under special oversight.

“All the necessary documents have been finalized, land plots have been allocated, and the investments are ready. We have been tasked with launching the project within a compressed timeframe,” Abdurakhmonov said.

Plans for Nile Sugar to establish production in Jizzakh were first reported in July 2023. The project envisages cultivating sugar beet across approximately 52,000 hectares. In 2024, the Ministry of Agriculture announced that 50,000 hectares in the Gallaorol and Farish districts had been selected for sugar beet cultivation, along with 170 hectares earmarked for the construction of the sugar plant.

On January 23 this year, Kudratov met with Nile Sugar CEO Emad Farid. The talks concluded with the signing of a final protocol confirming both sides’ readiness to continue coordinated efforts on preparing and implementing joint projects.

Officials expect the agreements to pave the way for the practical phase of cooperation with Nile Sugar, ensure the phased launch of joint projects, and facilitate the transfer and localization of modern agro-industrial and processing technologies in Uzbekistan.

High sugar prices remain a concern

The expansion of domestic sugar production comes amid concerns from local manufacturers over high sugar prices. At a government meeting on January 21, UzBev Association Executive Director Alfiya Musina described sugar costs as a “pain point for all local producers.” Currently, imported white sugar is subject to a 20% import duty.

Deputy Prime Minister Jamshid Khodjaev said Uzbekistan plans to abolish excise taxes from 2027, likely as part of efforts to equalize excise rates for imported and domestically produced goods.

“We have two major sugar production projects. I hope that within two to three years we will be able to increase and stabilize local production,” Khodjaev said.

Uzbekistan reintroduced a 20% excise tax on imported white sugar in 2020, though it was temporarily reduced to zero during the pandemic. Since 2021, the excise tax has again stood at 20%, while the zero customs duty was abolished. Under a presidential decision, excise taxes on imported white sugar will be scrapped from October 1, 2025, while the customs duty will remain in place.

According to the National Statistics Committee, Uzbekistan produced 165,500 tons of sugar in January–June 2025, a sharp decline from 227,800 tons in the same period of 2024 and 332,600 tons in 2023.