TANZANIA – Avo Africa is investing 20 billion shillings (USD 7.9 million) to establish an avocado oil manufacturing facility in Makambako, Njombe region, Tanzania.
The plant is set to begin operations by the end of February and is expected to process 600 tons of avocados daily.
By focusing on processing, Avo Africa aims to address the challenge of limited value addition in the Tanzanian avocado sector, which has long relied on raw exports.
The company has outlined plans to expand the facility’s capacity further by mid-2025. Two additional production lines will be installed, doubling the plant’s ability to process avocados.
These developments position Avo Africa to better compete in the growing global avocado oil market, valued at USD 610.5 million in 2024 and projected to grow annually by 4.2% until 2033, according to market research firm IMARC Group.
Tanzania’s avocado production reached over 75,500 tons in the 2022/2023 season, as reported by the National Bureau of Statistics. The new manufacturing unit offers a promising market for local farmers and is expected to improve their earnings.
It also signifies an important milestone for the region’s agricultural sector, encouraging economic growth and employment.
While the development in Tanzania brings optimism, avocado supply issues have affected neighboring South Africa.
Woolworths, a major South African retailer, recently confirmed an avocado shortage caused by reduced exports from Tanzania and lower harvest volumes in South Africa’s Eastern Cape.
“Unexpected logistical delays affecting avocados originating from Tanzania have also contributed to the shortage,” the company noted.
Despite these challenges, relief appears to be on the horizon. Woolworths indicated that fresh avocado harvests from Mozambique and Limpopo are nearly ready.
“This will ease supply constraints over the coming weeks,” the retailer stated, emphasizing its commitment to ensuring customers have access to fresh produce.
With Avo Africa’s plant nearing operational status, the country’s avocado industry stands to benefit from increased processing capabilities, improved farmer income, and a strengthened position in international markets.
Be the first to leave a comment