Tanzania Invests TSZ 30B to Build 30 Agroprocessing Facilities
During a site inspection of the industrial park near Mmovo village in the Newala district in the southern region of Mtwara on 1st of October 2024, Tanzanian Minister of Agriculture Hussein Bashe announced that the Tanzanian government will invest TZS 300 billion (USD 11M) to build 30 agroprocessing facilities to add value to cashew nuts, sesame, pigeon peas and other food crops. The ambitious program is expected to be completed by 2030.
It is worth noting that Tanzania is the second largest Africa exporter of cashew nuts, behind Cote d’Ivoire. In 2023, Tanzania export of cashew nuts — including fresh and dried nuts — reached 222,389 tonnes and brought in nearly USD 220 million in foreign currency. The top export markets are India (USD 128 million), Vietnam (USD 78 million) as well as the Netherlands, China and Slovenia.
According to the Tanzania Investment Center (TIC), some 87.3% of Tanzanian cashew nuts are exported raw with little in the way of processing or local value addition (#LVA). Thus, the cashew sub-sector has a lot of growth potential in brining greater value for locals.
On the same day, Tanzania Tandahimba Newala Cooperative Union (TANECU) also launched its cashew nut processing factory in Newala. The factory cost TZS 3.4 billion and is able to process 3,500 tonnes per year. Another similar facility is under construction in Tandahimba and is expected to be ready right in time for the next harvest season.
In Mmovo village, a new facility will have a processing capacity of 3,000 tonnes annually and will be ready by October 2025. The project is commissioned by the Cashew Board of Tanzania (CBT). As part of the development, local MP Chikota requested to build a dispensary.
Minister Bashe also highlghted that partnerships between the Tanzania Small Industries Development Organization (SIDO) with international firms from China, India, Italy or Vietnam are being contemplated in order to explore the potential of localizing the manufacturing of cashew processing machinery.
To support the sector, Minister Bashe assured that the government will continue to provide subsidies to cashew farmers in the country. As part of efforts to derive more value from cashew, Tanzania is exploring the extraction of juice from cashew apples and oil from the cashew shells.