DODOMA: THE government has launched a strategy to boost the value of Tanzanian tea by promoting processed exports, empowering smallholders through cooperatives and expanding global markets.
Speaking during the Tea Board of Tanzania (TTB) Annual General Meeting in Dodoma, Agriculture Minister Hussein Bashe said three of seven planned processing machines have already been procured this financial year to support tea processing, following the closure of MeTL and Marvella factories, which left many farmers without access to processors.
To assist growers in Korogwe, Mr Bashe said two machines, one for processing and one for blending, will be installed in Dindira and managed by Agricultural Marketing Cooperative Societies (AMCOS) under agreements with the Tea Board.
A blending and packaging machine will also be set up at the Kipawa warehouse to facilitate value addition for teas bought through the Dar es Salaam auction.
Mr Bashe also announced the launch of a national tea brand to boost Tanzanian tea’s identity and global recognition.
“Our tea has long been sold alongside products from other countries without clear origin. This brand ensures Tanzanian tea is recognised globally,” he said.
Export deals have already been struck with Oman, Qatar, Dubai, Japan and Saudi Arabia.
Mponde Holdings Black Tea Factory, for instance, has signed a contract to export 100 tonnes per month to Oman’s MUMTAZ Blending Company.
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Buyers from Russia and Dubai are also in talks to procure 260 tonnes per month, while Kazi Yetu Company is exporting specialty teas to Qatar.
Between December 2024 and March 2025, tea exports generated 50.25bn/- through Board-issued permits, supporting over two million indirect jobs.
Mr Bashe also highlighted growing investment in tea regions such as Kilolo, Njombe and Mbeya under the 2024/25 budget.
Japan’s ITO EN Company is sourcing green leaf from NOSC out growers, while China’s Hong Ding Xin Investments Ltd is building a specialty tea facility in Kilolo. However, challenges persist.
Global tea prices have been impacted by conflicts in Eastern Europe and the Middle East and foreign currency shortages in markets like Pakistan and India have also affected trade.
To cushion farmers, the government has waived the Alternative Minimum Tax (AMT) until June 2027 and provided VAT exemptions for tea blending plants.
He urged processors to adopt clean energy technologies, such as gas and solar, to reduce costs and align with national energy goals. Efforts are also underway to enhance yields and quality through clonal tea expansion, replacement of ageing seedlings and productivity improvements.
The Tea Board is strengthening the weekly Dar es Salaam auction, which began in November 2023, by increasing brokers and improving Kipawa infrastructure, while exploring more international buyers.
