Tanzania expands cashew processing capacity in Mtwara region

TANZANIA – Tanzania is boosting its cashew nut processing capacity with the opening of a new facility in the Mtwara region. This project, led by the Tandahimba-Newala Cooperative Union (TANECU), represents a significant step forward for the local cashew industry.

The new processing unit, constructed at a cost of 3.5 billion shillings (USD 1.3 million), is set to officially open on October 1, 2024.

Minister of Agriculture Hussein Bashe will inaugurate the facility, which has the capacity to process 3,500 tons of cashew nuts annually.

“This facility marks the beginning of a larger plan to enhance our region’s processing capabilities,” said a representative of TANECU. “We are committed to expanding cashew processing in Tanzania, starting here in Mtwara.”

This facility is the first phase of a broader TANECU project aimed at building 20 processing units in the Tandahimba and Newala districts.

Once completed, these units will process 70,000 tons of cashew nuts per year, helping to boost Tanzania’s local cashew processing industry.

Tanzania is the second-largest supplier of cashew nuts in Africa, following Côte d’Ivoire. The country’s cashew industry has seen substantial growth, with production increasing by 61% to reach 305,000 tons during the 2023/2024 season.

Projections for the 2024/2025 season indicate an even greater rise of 95%, bringing total production to 595,000 tons.

However, while production has grown, local processing has lagged. In 2019, less than 15% of cashew production was processed domestically.

The Tanzanian government aims to change this by processing 60% of the nation’s cashews locally by the end of 2025. The Mtwara region, along with Lindi, Ruvuma, Tanga, and Pwani, will play a crucial role in achieving this goal.

“The increase in processing capacity will not only add value to our cashew nuts but also create more jobs and stimulate local economies,” noted the TANECU spokesperson. “This is a significant opportunity for the cashew farming communities.”

The government is actively supporting these initiatives to expand processing capacity. In June 2024, construction began on an industrial park in the Mtwara region, specifically dedicated to cashew processing.

This park is expected to attract further investment and solidify Tanzania’s position in the global cashew market.

Currently, Tanzania ranks as the fourth-largest cashew producer in Africa, contributing significantly to global supply. Despite this, the majority of its raw cashews are exported for processing abroad.

By investing in local processing facilities, the government and cooperatives like TANECU aim to capture more value from the cashew sector, benefiting both the economy and the local workforce.

With the opening of the new processing unit, Tanzania is taking a crucial step towards realizing its ambition of processing a larger share of its cashew crop domestically.

This project is expected to improve the livelihoods of cashew farmers and strengthen the country’s position in the global market.