Tanzania has begun the construction of a cashew processing industrial park in the Mmovo village, part of the Newala district in the Mtwara region in southern Tanzania on the Indian Ocean.
This was revealed on 1st October 2024 when Tanzania’s Minister of Agriculture Hon. Hussein Bashe visited the site and commended Tanzania’s Cashew Board (CBT) for initiating the project.
The construction funded by the Tanzania government and overseen by CBT costing approximately TZS 300 billion until completion, includes 30 cashew processing factories and facilities for processing sesame, pigeon peas, and other crops, and is expected to be complete by 2030.
Minister Bashe highlighted: “I am pleased with the ongoing work and I urge that by October 2025, we should have one factory ready to process 3,000 tons of cashews. I have also received a request from MP Chikota to build a dispensary, which will be included in the overall project.”
Minister Bashe also mentioned that CBT has hired over 500 agricultural extension officers who in addition to providing extension services will also be responsible for distributing inputs and collecting accurate data on farmers.
On his part, Francis Alfred, the Director General of CBT highlighted that the first phase of the construction has begun with a budget of TZS 7.5 billion, which will cover electricity, water, the construction of two warehouses, each with a capacity to store 10,000 tons of products, a fence surrounding the entire 1,572-acre area, 11 kilometers of internal roads, and three gates.
New Cashew Processing Factory
On the same day, Tanzania’s Tandahimba Newala Cooperative Union (TANECU) launched its cashew nut processing factory in Newala.
The factory costing TZS 3.4 billion can process 3,500 tons of cashew nuts annually
During the launch, Tanzania’s Minister of Agriculture Hon. Hussein Bashe highlighted: “I also direct that another factory like this should be built in Tandahimba to be ready for the next season.”
Tanzania Cashew Production and Exports
The 2023/24 season saw record production of cashew nuts in Tanzania, reaching 305,014 metric tons, up from 189,114 tons in the previous season. This surge was attributed to increased government subsidies and improved agricultural inputs, resulting in an even higher revenue of US$227.1 million by March 2024.
In 2023, Tanzania exported fresh and dried cashew nuts worth approximately US$219.8 million, totaling 222,389 metric tons.
The primary destinations for these exports were India, which accounted for the largest share (US$127.9 million), followed by Vietnam (US$77.8 million), and smaller exports to countries like the Netherlands, China, and Slovenia.
According to the Tanzania Investment Center (TIC), Tanzania’s cashew sub-sector presents investment opportunities as 87.3% of cashew nuts are exported raw (RCN).
Key areas for investment include increasing production through improved farming techniques to raise yields expanding large-scale cashew farming and processing cashew kernels into various products, producing juice and liquor from cashew apples, and extracting cashew shell liquid for industrial use.
Recently, Hon. Bashe stressed that the government will continue to provide input-free subsidies to cashew farmers in the country.
He also mentioned that there is potential in manufacturing cashew processing machinery through partnerships with the Small Industries Development Organization (SIDO) and international companies from Italy, India, China, and Vietnam.
