Mirae Green Chemical, boosts Tanzania’s cashew industry with US$5M processing facility

TANZANIA – In a bid to advance Tanzania’s cashew industry, Mirae Green Chemical Co. Ltd., a South Korean company, has completed the construction of a state-of-the-art cashew nut processing and cashew nut shell liquid (CNSL) factory in the Mkuranga District of the Coast Region.

The US$5 million facility, situated at the Dundani Industrial Park, is poised to become a pivotal player in the region’s cashew processing landscape.

The newly established factory boasts a substantial processing capacity, capable of handling 3,000 to 4,000 metric tonnes of raw cashews annually.

Moreover, it is engineered to produce 2,500 to 3,000 metric tonnes of highly sought-after CNSL, a critical raw material for bio-heavy oil—an eco-friendly fuel celebrated for its air pollution reduction effects.

Additionally, the facility adds another dimension to its output with the manufacture of 2,500 to 3,000 metric tonnes of charcoal flake annually.

Cashew nut shell liquid, produced by Mirae Green Chemical, is set to address the increasing demand for bio-heavy oil in South Korea.

The South Korean government incentivizes the use of bio-heavy oil by offering financial subsidies, aligning with its ambitious zero-carbon policy.

The Export Processing Zone Authority (EPZA) and various governmental bodies collaborated closely with Mirae Green Chemical in realizing this transformative project.

James Maziku, the director of investment promotion at EPZA, underscored the project’s substantial value, emphasizing its positive impact on efficiency and productivity within Tanzania’s cashew industry.

Dr. Tausi Mbaga, Permanent Secretary of the Ministry of Planning and Investment, commended the significant investment, recognizing its role in upgrading the cashew nut value chain and contributing to the nation’s overall economic development.

Tanzania, positioned as East Africa’s primary cashew nut producer, is strategically focused on enhancing both production and processing capabilities.

The government has set an ambitious target to produce 1,000,000 metric tonnes of cashews annually by 2030. However, challenges in processing technology have resulted in approximately 90% of cashew nuts being exported in raw form, fetching lower prices.

Mirae Green Chemical’s substantial investment aligns seamlessly with Tanzania’s objectives, promising to elevate processing capabilities and add significant value to the cashew industry.

Earlier this year, Tanzania’s Vice-President, Dr. Philip Mpango, urged African nations to boost local consumption of cashew nuts and their by-products.

He emphasized the need to reduce consumer prices, promoting a regional market for cashew-related products. Mpango called for collective efforts to tap into the vast African Continental Free Trade Area, with its potential market of almost 1.4 billion people.

He further urged the fast-tracking of investments in cashew processing factories, emphasizing the importance of fair practices within the industry.