On 21st August 2024, the United States, through the U.S. Agency for International Development (USAID), announced a commitment of $83 million to bolster food security and enhance trade through strategic partnerships with Tanzania’s private sector.
The investment will fund various programs aimed at increasing agricultural productivity, improving nutrition, and expanding market access for Tanzanian farmers and businesses.
This investment is a part of the broader U.S. strategy to support Tanzania’s participation in the African Growth and Opportunity Act (AGOA), which provides Tanzanian businesses with duty-free access to the U.S. market.
By focusing on key sectors, the initiative will help Tanzanian companies scale up production and meet international standards, thereby increasing exports under AGOA.
Investment Focus Areas:
-Trade and Market Access: The initiative will enhance infrastructure, reduce trade barriers, and foster partnerships to boost exports under AGOA.
-Agricultural Development and Fertilizer Access: The U.S. funding will support the companies in providing modern farming techniques, high-quality seeds, and fertilizers to increase crop yields and reduce food insecurity.
-Nutrition and Health: Investments will improve the production of nutrient-rich foods, benefiting the nutritional status of Tanzanian communities.
Companies Benefiting from the Investment:
1.Silverlands Tanzania – Engaged in various agricultural ventures, Silverlands will receive support to expand its operations and improve export opportunities.
2. Bakhresa Group – A leading producer of food and beverage products, Bakhresa will receive support to expand its production capacity and improve export capabilities.
3. Mohamed Enterprises Tanzania Limited (MeTL) – This diversified conglomerate will benefit from improved infrastructure and technology to boost its agricultural and food processing operations.
4. Tanga Fresh – A major dairy company in Tanzania, Tanga Fresh will use the investment to enhance its dairy production and processing capabilities.
5. Kilombero Sugar Company – Kilombero Sugar will receive funding to increase sugar production and improve its processing facilities.
6. Yara Tanzania – Specializing in fertilizers, Yara will provide Tanzanian farmers with improved access to high-quality fertilizers, enhancing crop yields.
7. Minjingu Mines & Fertilizer Ltd. – This company will support agricultural productivity by supplying essential fertilizers and modern farming techniques.
8. East Africa Seed Company – Focused on seed production, this company will help improve the quality and availability of seeds for Tanzanian farmers.
9. Export Trading Group (ETG) – ETG will use the investment to enhance its trade operations, facilitating better access to regional and international markets.
USAID/Tanzania Mission Director Craig Hart commented: “Through this investment, we are addressing critical areas such as food security, nutrition, and trade, all of which are essential for Tanzania’s long-term economic stability. By partnering with the private sector and leveraging AGOA, we are helping Tanzanian companies compete on a global scale, bringing more prosperity to the nation.”
Tanzania and AGOA
AGOA is a US trade preference program that provides eligible sub-Saharan African countries with duty-free access to the US market for over 6,800 products. Tanzania also qualifies for textile and apparel benefits.
Tanzania became eligible for duty-free access to the US market under AGOA in 2000.
In November 2023, Tanzania’s Minister of Industry and Trade called for an extension of AGOA beyond 2025, stressing the importance of this program for Tanzania and other eligible African countries.
