Tanzania plans tea sector overhaul to boost farmer incomes, increase transparency
Authorities push for reforms in Tanzania’s tea sector to improve farmer earnings and restore industry productivity and accountability.
TANZANIA – Tanzania is set to reform its tea sector in a move aimed at increasing farmer incomes and preventing further decline in production.
Agriculture Minister Hussein Bashe made this announcement during the closing of the national tea industry stakeholders’ conference, emphasizing the urgent need for structural changes.
The minister noted that despite the large number of farmers involved in tea cultivation, the sub-sector lags behind others in terms of productivity.
He called on the Tanzania Tea Board (TTB) to establish a task force within 14 days to design a transparent operational system that clearly defines the relationship between farmers and tea processing factories.
The proposed team is to be composed of representatives from the government, farmers, and private sector stakeholders. It will also be responsible for ensuring that all factories and farmers register under the new tea production and processing format.
Bashe warned that failure to adopt the new format would prevent the sector from making meaningful progress. He directed that any factory not complying with the new registration system should have its operating license revoked.
The minister also instructed the TTB to engage in talks with the management of Watco tea factory regarding potential government acquisition.
The factory, which has reportedly faced losses since its privatization, may be reacquired if the current owners are willing to collaborate with the government.
In addressing current market challenges, Bashe mentioned that the board has already procured three of the seven machines planned for fiscal year 2024/25.
This move is expected to stabilize production following the closure of Mohamed Enterprises Ltd (MeTL) and Marvella tea factories.
As of March 25, 2025, tea sales had generated Tsh 50.25 billion (US$18.8M) for the national economy. Additionally, the TTB is seeking to expand export markets for Tanzanian tea.
New markets being explored include Oman, Qatar, Dubai, Japan, and Saudi Arabia. Notably, Mponde Holdings factory has entered into a contract with Oman-based Mumtaz Co. to supply 100 tonnes of tea per month.
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