Cashew processing opens investment opportunities
TANZANIA: LIMITED cashew processing capacity is creating significant investment opportunities in Tanzania as the country seeks to increase production to one million tonnes of raw cashew nuts annually by 2030 and retain a greater share of the crop’s value locally.
Speaking to the Daily News, the Director of Crop Development in the Ministry of Agriculture, Dr Yasinta Nzogela, said the government was promoting private-sector investment across the agricultural value chain, including processing, storage, transport, drying and other support services.
She said Tanzania could not continue focusing mainly on producing and exporting raw agricultural commodities while missing opportunities to generate greater value through local processing.
Dr Nzogela said the government was ready to work with companies and institutions to facilitate investment and promote modern technologies aimed at improving production, quality and the value of Tanzanian agricultural products.
According to her, expanding processing capacity would help reduce post-harvest losses, increase farmers’ incomes, create employment and ensure a greater share of the value generated from agricultural products remains in Tanzania.
The government’s focus on value addition comes as Tanzania continues to increase cashew production while seeking wider markets for processed products.
According to Ministry of Agriculture statistics, Tanzania produced 617,683.77 tonnes of cashew nuts during the 2025/26 season, against a target of 700,000 tonnes.
The country aims to increase annual production to one million tonnes by 2030, creating further demand for processing facilities and related infrastructure.
Speaking separately, Akross Ltd Director of Marketing and Exports, Jackson Joel, said Tanzania currently processes less than 30 per cent of its cashew production, leaving substantial room for investors to establish processing and value-addition facilities.
“The biggest challenge we currently face is limited processing capacity. Tanzania is still processing only a small proportion of the cashew produced,” he said.
Mr Joel said Akross was expanding its operations through a new processing facility with an initial capacity of 50 tonnes per session.
The capacity is expected to increase to between 70 and 100 tonnes a day when the facility operates at full capacity.
He said increased investment in processing would enable Tanzania to add value before export while creating jobs and stimulating economic activities in areas where processing facilities are established.
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“If you look at the government’s vision, by 2030 we want to produce one million tonnes. If we manage to process 50 per cent, that means we will have processed 500,000 tonnes in Tanzania,” he said.
He said every processing plant required permanent and temporary workers, meaning increased investment could generate employment while supporting businesses providing transport, packaging, logistics and other services.
He added that expanded processing would also provide farmers with a nearby and more reliable market because processors purchase raw cashews through primary cooperative societies (AMCOS).
Another opportunity, he said, was the Chinese market following a zero-tariff agreement, although Tanzania still needed to complete registration procedures required for cashew products to enter the market.
Completing the procedures would enable Tanzanian processors to access the large Chinese market and increase exports of value-added cashew products.
The investment opportunities therefore extend beyond processing itself, with potential for growth across storage, transportation, packaging, logistics and other services supporting the cashew value chain.
