Tanzania's cashew processing sector is unlocking new investment avenues as the government and private stakeholders push for greater value addition, aiming to process 50% of the country's cashew production by 2030. Dr. Yasinta Nzogela, Director of Crop Development at the Ministry of Agriculture, emphasized that limited processing capacity has created a critical gap, with the nation currently processing less than 30% of its output. She stated that expanding processing infrastructure would reduce post-harvest losses, boost farmers' incomes, and retain more economic value locally. The government is actively seeking private-sector partnerships to modernize the agricultural value chain, including storage, transport, and drying, to meet its target of producing 1 million tonnes of raw cashew nuts annually by 2030.
Jackson Joel, Director of Marketing and Exports at Akross Ltd, highlighted the urgent need for processing facilities, noting that Tanzania's current capacity is insufficient to meet demand. Akross is investing in a new processing plant with an initial capacity of 50 tonnes per session, expected to scale to 70–100 tonnes daily. Joel stressed that increased processing would create jobs, stimulate local economies, and provide farmers with a stable market through primary cooperative societies (AMCOS). He also pointed to the Chinese market as a key opportunity, following a zero-tariff agreement, though Tanzanian processors must complete regulatory registrations to access it.
The Ministry of Agriculture's 2025/26 season data revealed Tanzania produced 617,683.77 tonnes of cashew nuts, falling short of the 700,000-tonne target. This gap underscores the urgency for infrastructure development, as processing expansion could generate 500,000 tonnes of processed output by 2030 if the 50% target is met. Joel noted that each processing plant requires both permanent and temporary workers, while also driving demand for transport, packaging, and logistics services. The government's focus on value addition aligns with broader efforts to transform Tanzania from a raw commodity exporter to a processed goods hub, with implications for rural employment and economic diversification.
Investment opportunities in cashew processing extend beyond manufacturing, encompassing storage, transportation, and packaging sectors. Dr. Nzogela reiterated the government's commitment to facilitating private-sector participation through modern technologies and supportive policies. With the sector's growth potential, stakeholders anticipate a ripple effect across rural communities, enhancing livelihoods and positioning Tanzania as a competitive player in global cashew markets. The push for processing reflects a strategic shift to maximize the economic returns of Tanzania's agricultural resources.