TANZANIA – Tanzania has unveiled plans to construct four new cashew processing factories in the southern regions by the 2025/26 season, marking a significant step towards enhancing local cashew processing and increasing the value of its exports.
The announcement was made by Agriculture Minister Hussein Bashe during the launch of a new cashew factory in Mmovo village, Newala District.
The new facilities will include a factory at the Maranje Industrial Cluster in Mtwara Rural district, two factories in Tandahimba and Newala districts under the Tanzania National Cashew Cooperative Union (Tanecu), and a fourth factory owned by the Tunduru Agricultural Marketing Cooperative Union (TAMCU).
Bashe emphasized that the projects must be completed ahead of the 2025/26 cashew trading season to fully utilize the two newly constructed 10,000-tonne capacity warehouses at Maranje Industrial Cluster.
The Tanecu factory, a TSH3.4 billion investment in Newala, will have an annual processing capacity of 3,500 tonnes of raw cashew nuts and is projected to generate sales of TSH147 billion once fully operational.
Bashe also called for another factory to be constructed in Tandahimba district, stressing the importance of increasing local processing capacity to maximize export value.
The minister further directed TAMCU to raise TSH600 million by the end of the season, with additional financial support from the Tanzania Agricultural Development Bank (TADB) and CRDB Bank, to establish their processing plant.
To support the broader cashew sector, the Tanzanian government is mobilizing TSH20 billion to establish the Tanzania Commercial Bank, which will be headquartered in Dodoma and have branches in Mtwara, Tandahimba, and Kilimanjaro.
Cashew buyers will be required to hold accounts at the new bank for purchasing licenses and payment processing.
These new initiatives are part of Tanzania’s strategy to reduce raw cashew exports and strengthen its position in the global cashew market.
In the 2023/2024 season, cashew exports generated US$227 million, up from US$162 million in the previous season.
Cashew production also saw a significant increase, rising from 189,100 metric tons in the 2022/2023 season to 305,000 metric tons in 2023/2024, according to the Cashew Board of Tanzania (CBT).
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE