Tanzania’s cashew future looks brighter as Algerian plans factories to turn quality nuts into wealth

MTWARA: For Tanzania’s cashew farmers, particularly young people looking for sustainable economic opportunities, the future of the crop could be entering an important new phase.

In focus, an Algerian cashew processor, Sarl Anacard’Or Cashew, is planning to expand its investment in Tanzania by establishing three modern cashew-processing factories, beginning with one in Masasi District, Mtwara Region.

The proposed investment is significant because it points to a growing opportunity for Tanzania to process more of its cashew nuts locally, create employment, develop skills and capture greater value before the products reach international markets.

More importantly for farmers, increased local processing could strengthen demand for quality Tanzanian cashews and create a stronger connection between production at farm level and value creation in factories and international markets.

Speaking to Tanzanian Ambassador to Algeria Mobhare Matinyi during his visit to the company's facility in Oran, the company's owner and Chief Executive Officer, Walid Dib, explained his plans to establish three modern cashew-processing plants in Tanzania. Dib said the decision was influenced by the quality of Tanzanian cashew nuts.

“Tanzanian cashew nuts are of exceptional quality and we have resolved to build three plants first establishing one in Masasi, Mtwara region, where we will install modern machinery from Vietnam,” he said.

He is already working with a local partner to complete the formalisation of the first company, Kilimanjaro Nuts Limited. For Tanzania’s farmers, this development carries an important message: producing a quality crop can open doors not only to local markets but also to international investment and value-added production.

A new opportunity for Mtwara

The first proposed factory in Masasi could become an important addition to the economic landscape of Mtwara, one of Tanzania’s major cashew-producing areas.

Dib said he was already preparing storage warehouses in Masasi District and expected to order processing equipment from Vietnam in September. The equipment is expected to arrive in Tanzania with experts who will train Tanzanian counterparts from January 2027.

This training component is particularly important because investment in modern processing is not only about machinery. It also creates an opportunity for Tanzanians to acquire technical knowledge and practical skills in processing, quality control, packaging, machinery operation and other areas of the cashew value chain. For young Tanzanians, such developments can create employment opportunities beyond farming.

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The emerging processing industry could require workers in factory operations, logistics, maintenance, quality assurance, packaging, accounting, marketing and transportation. This means the cashew industry can offer opportunities to young people with different educational and technical backgrounds.

Farmers can benefit from value addition

Tanzania has traditionally exported substantial quantities of raw cashew nuts, but increasing local processing can allow the country to capture more value from the crop before it is sold in international markets.

This is the point emphasised by Ambassador Matinyi, who congratulated Dib for beginning the investment process and assured him of Government support. He said the investment would expand employment, increase Government revenue and bring skills and foreign exchange into Tanzania.

“It is the government’s intent to support investment in local cashew nut processing to boost the percentage of value-added exports to the global market, and significantly reduce the sale of in-shell raw cashew nuts,” Ambassador Matinyi said.

For farmers, the concept of value addition is important because the economic value of a crop does not end when it leaves the farm. Processing can transform raw cashews into products that command higher value in domestic and international markets.

That creates a broader economic chain in which farmers supply the raw material, processors add value, workers earn incomes, transporters move products, businesses provide services and exporters connect finished products with consumers.

Why quality matters to farmers

The Algerian investor’s decision to focus on Tanzanian cashews provides a strong reminder of the importance of producing quality nuts.

Dib demonstrated this by showing Ambassador Matinyi Tanzanian cashews that had passed through 11 stages of production at the Oran factory before being packaged for sale. He said his experience had convinced him to continue using Tanzanian cashews.

“I received six containers last month; I have six more at the port of Oran while seven are on their way in, with another seven at the port in Dar es Salaam waiting to be shipped, and each container is packed with 27 tonnes of cashews nuts,” he said.

The scale of these shipments illustrates the potential of international demand for Tanzanian cashews. For farmers, however, international demand also creates a responsibility to maintain production standards.

Quality begins at the farm. Proper harvesting, handling, drying, storage and protection from contamination can influence the final quality of cashew nuts. Farmers who understand the importance of quality are therefore better positioned to benefit from markets that value reliable and high-quality produce.

The youth have a major role to play

Young Tanzanians should not view the cashew sector only as an agricultural activity reserved for older generations. The expanding value chain creates opportunities for youth to participate in production, processing, transportation, storage, marketing, technology and entrepreneurship. A young person may begin by farming cashews, but opportunities do not end there.

Youth can establish businesses supplying farming inputs, provide transport services, develop storage facilities, participate in processing, create packaging enterprises or use digital tools to connect farmers with markets. Technical skills will also become increasingly valuable as modern processing plants are established.

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Young people who acquire knowledge in machinery operation, electrical maintenance, food processing, quality control and logistics could find opportunities in a growing industrial sector.

The arrival of foreign investment can therefore serve as a catalyst for local entrepreneurship if young Tanzanians prepare themselves to participate.

Production has already reached significant levels

The investment plans come against the backdrop of strong growth in Tanzania’s cashew production.

Ambassador Matinyi said Government efforts through the Tanzania Cashew Board (CBT) had contributed to increased production, which reached 617,683 tonnes during the 2025/26 season. The crop generated 1.25tri/-, placing Tanzania among the world’s largest cashew producers after Côte d’Ivoire, Vietnam and India. These figures demonstrate the importance of cashews to Tanzania’s agricultural economy.

They also suggest that the country has a substantial raw-material base that can support increased processing if the necessary investment, infrastructure, skills and market connections are developed.

For farmers, increased production can create greater opportunities, but the long- term benefit will depend on ensuring that productivity, quality and market access improve alongside production volumes.

From farm production to industrial growth

The planned factories could help strengthen the link between agriculture and industrialisation.

When raw agricultural products are processed locally, more economic activity can remain within the producing country. Processing can create jobs, increase demand for supporting services and generate additional government revenue. It can also create opportunities for farmers to participate in a more structured value chain.

For Tanzania, this supports the broader goal of moving from dependence on exports of raw agricultural commodities towards greater value addition. For individual farmers, the lesson is equally important: a strong agricultural sector can become the foundation of industrial development.

Cashews grown by farmers can supply factories, factories can employ local people, and finished products can reach consumers in international markets.

Preparing for the next stage

The planned investment also highlights the importance of preparing farmers for a changing cashew industry.

As processing capacity expands, reliable supplies of quality raw materials will become increasingly important. Farmers can prepare by maintaining productive orchards, adopting recommended agricultural practices, replacing ageing trees where necessary and paying attention to harvesting and post-harvest handling.

Farmer organisations and cooperatives can also play a role by helping producers access information, inputs, markets and technical support. Young farmers, in particular, can combine agricultural knowledge with technology and business skills to make cashew farming more productive and commercially oriented.

The future of cashew farming should therefore not be viewed simply in terms of producing more nuts. It should also involve producing better-quality nuts and connecting production to processing and markets.

A chance to capture more value

The planned establishment of three factories sends a powerful signal about the potential of Tanzania’s cashew industry. It demonstrates that international investors see value in Tanzanian cashews and are prepared to invest in processing capacity within the country.

For Government, the opportunity is to continue creating an environment that attracts investment while ensuring that local communities and farmers benefit from the growth of the industry. For farmers, the priority should be to strengthen production and quality. For young people, the message is even broader: the cashew value chain can provide opportunities in agriculture, industry, technology, logistics and entrepreneurship. Tanzania already has the raw material, a growing production base and international recognition for the quality of its cashews. The next challenge is to turn that advantage into greater value at home.

If the planned factories are successfully established and more processing investments follow, Tanzania could retain a larger share of the value generated by its cashew industry while creating jobs and strengthening local economies.

For the country’s farmers, especially its youth, this is a moment to look at cashews differently not simply as nuts harvested from trees, but as a gateway to farming prosperity, industrial development, employment and international markets. The opportunity begins in the orchard, but its potential stretches all the way to the global consumer.