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Mtwara’s gas dreams fizzle as cashew nuts farming revives
What you need to know:
- The gas economy, once touted as the region’s future, has yet to fully materialise, and Mtwara has reverted to its agricultural roots.
Mtwara. Long before natural gas made headlines in the region, Mtwara was synonymous with cashew nut farming.
However, after the discovery of over 57 trillion cubic feet of natural gas, mainly in the Mtwara and Lindi regions between 2010 and 2015, expectations for an economic transformation soared.
From 2010 to 2015, Mtwara and Lindi gained national recognition. Investors poured into the area, particularly in real estate and construction, eager to capitalise on the anticipated oil and gas boom. Roads were rapidly upgraded, hotels mushroomed, and entertainment venues flourished. The buzz of economic activity was palpable.
For a brief window, Mtwara became Tanzania’s boomtown. Property prices skyrocketed, and renting a modest room suddenly became a luxury, as demand soared among workers and entrepreneurs flocking to the area.
Yet more than a decade later, residents speak of that period with nostalgia—what once felt like a new beginning has become a tale of missed opportunities.
The gas economy, once touted as the region’s future, has yet to fully materialise, and Mtwara has reverted to its agricultural roots.
A promising past, a pensive present
Ms Salma Musa, a resident of Shangani Ward, recalls a vibrant, fast-paced Mtwara during the height of exploration activities.
“The economic landscape was booming, full of life and opportunities. But today, it’s a different story. The town feels quieter, more subdued,” she said.
She described how the 2010–2015 period brought a surge in foreign firms and employment. Demand for housing and services soared. A room that once rented for Sh70,000–Sh100,000 now fetches just Sh30,000–Sh50,000, she noted.
The decline began around 2016, when firms such as BG, ExxonMobil and Statoil either scaled down operations or exited altogether. Thousands lost their jobs, and with them, the momentum that had fuelled Mtwara’s economic boom.
Hamidu Ali, from Railway Ward in Mtwara Mikindani, echoed her sentiments.
“The economy thrived when the gas sector was active. But once the companies left, the energy went with them. Businesses shut down. Flights reduced. Even the private jets disappeared.”
Indeed, where once airlines operated multiple flights daily, today’s schedule is sparse.
Back to cashew nuts
With gas on the back burner, agriculture has resumed its central role in Mtwara’s economy. Crops such as cashew nuts, sesame and pigeon peas (mbaazi) now drive economic activity.
Cashew farming, in particular, remains the region’s economic backbone. The government has introduced incentives to support the sector, and the crop continues to attract both domestic and international buyers. However, Mtwara’s limited capacity for large-scale agricultural production means living standards have not fully recovered.
“The cashew season brings life back into the region,” said District Commissioner Abdallah Mwaipaya. “It attracts traders, stimulates markets and supports surrounding industries. We’re also planning to expand the main market to help local traders thrive.”
Despite falling cashew prices in recent years, the crop remains vital. It supports farmers, sustains local businesses and even provides seasonal jobs across the value chain—from transporters to vendors.
In fact, latest figures show that Tanzania has achieved a historic milestone, earning over Sh1.52 trillion from cashew exports during the 2024/25 season after producing 528,260 tonnes of raw cashew nuts (RCN).
According to the Bank of Tanzania’s Monthly Economic Review for February 2024, provisional revenue, equivalent to $583.7 million, suggests that the final figure could exceed $600 million.
Cashew earnings have fluctuated over the past five years, with 2022 bringing in $180.6 million from 240,158 tonnes and 2021 generating $282.1 million from 210,786 tonnes. The 2024/25 bumper harvest was driven by the export of 410,000 tonnes traded through auctions, while the remaining 118,262 tonnes were processed locally for both domestic and international markets.
The Cashew Nut Board of Tanzania (CBT) said recently that the production increase was due to government subsidies, which included 41,263 tonnes of sulphur powder and 2.7 million litres of liquid pesticides distributed to farmers.
CBT director general Francis Alfred told The Citizen recently that improved yields were also supported by favourable weather conditions and strategic government interventions.
During the 2024/25 season, the price of RCN at auctions ranged from Sh1,810 to Sh4,196 per kilogram. The real estate sector was among the hardest hit after the gas boom faltered. Said Magomeni, a local estate agent, recalled the sharp decline in rental values.
“During the boom, a furnished house could rent for up to Sh3 million. Today, the same property might struggle to reach Sh1 million. Unfurnished homes that once rented at Sh1 million are now going for Sh250,000 to Sh300,000.”
Investors who bought properties during the peak years now face dwindling returns.
Local businesses have also felt the squeeze. Maimuna Ismail, manager at Busati Lounge on Kiyangu Street, remembers the glory days.
“We used to charge Sh50,000 to Sh70,000 per room. Now we’re down to Sh25,000 to Sh35,000. Things are quieter.”
Even market vendors have seen a shift. Maimuna Hamisi, who sells coconuts at Mkanaledi market, noted a clear link between cashew sales and her own business.
“When cashew farmers earn well, they spend more—even on coconuts. But during off-seasons or poor harvests, sales drop significantly.”
Aviation and port activity reflect the change
Hilary Mremi, Marketing and Corporate Affairs Manager at Precision Air, recalled how the company operated up to 10 flights a day to Mtwara during the gas exploration years.
“We now fly only three times a week,” he said.
Similarly, Air Tanzania operates three weekly flights, with Public Relations Officer Sarah Rueben clarifying that aircraft allocation across the country is a balancing act—not necessarily a reflection of demand in Mtwara.
At the port, activity aligns with agricultural seasons. Mtwara Port Manager Ferdinand Nyathi said cashew exports are a critical part of the port’s operations.
“During the cashew season, we see more ships bringing in containers and taking out exports. This increases our revenues and creates more local jobs—benefiting transport providers, hotels and food vendors.”
Mtwara’s story is one of contrasts—of promise, pause, and resilience. While the natural gas boom has yet to fulfil its potential, the region’s return to agriculture has reignited a more grounded, if slower, form of economic growth.
Though challenges remain, particularly in infrastructure and market access, Mtwara continues to demonstrate a quiet determination—rooted in its soil, shaped by its past, and hopeful for its future.
