Tanzania launches Sh462bn grain tender as regional demand soars

According to a statement by the agency, submissions are open until December 30, 2025, and the offer targets both local millers and international buyers.

If sold at the minimum floor prices, the NFRA could raise more than Sh425 billion from maize sales and Sh37.4 billion from rice, equivalent to Sh462.4 billion in total.

NFRA’s chief executive officer Dr Andrew Komba, said the sale is part of the agency’s regular market operations aimed at maintaining the quality of its reserves and ensuring continued liquidity for future purchases.

“It’s a normal practice for us to sell because when grain stocks sit in storage for too long, they risk spoilage,” Dr. Komba told The Citizen.

“We must therefore sell and replenish with new stock. Tanzania currently has abundant grain supplies, which allows us to manage this process confidently,” he said.

Dr Komba added: “This year, we plan to purchase about 300,000 tonnes of new grain from farmers, and next year that volume could rise to over 600,000 tonnes, depending on the harvest and market conditions”.

“Our sales cover both domestic and export markets. External demand continues to grow. For instance, last year, when we sold about 300,000 tonnes, nearly 250,000 tonnes were bought by foreign buyers, while 50,000 tonnes were absorbed locally.

We expect this trend to continue as regional demand strengthens — and we have enough food to supply both local and external markets.”

The release follows a period of stable food supply and favorable harvests across major producing zones, including Rukwa, Ruvuma, and Songwe.

The agency’s large-scale tender also reflects confidence in the upcoming planting season, with the next harvest cycle expected to replenish national reserves by mid-2026.

For local millers and traders, the offer provides a rare opportunity to access government stockpiles at predictable, transparent prices. For regional importers — particularly those facing grain shortfalls due to erratic weather patterns — Tanzania’s sale could offer much-needed relief.

Exporters are expected to show strong interest in the maize component, given the country’s proximity to deficit markets and the continuing ban on genetically modified grain imports in Kenya.

While the tender is seen as a proactive market move, it also comes against a backdrop of Tanzania’s strong external trade performance.

According to the Bank of Tanzania’s Monthly Economic Report for September 2025, goods exports rose 22.7 percent year-on-year to $9.89 billion in the year ending August, driven largely by agricultural commodities.

Cereal exports, including maize and rice, surged 95.4 percent to $341.2 million, up from $174.6 million a year earlier.

At the same time, traditional export crops such as coffee, tobacco, and cashew nuts grew 28.3 percent to $1.41 billion, reflecting continued recovery in agricultural production.

Despite rising export demand and higher prices for key staples, headline inflation remained low at 3.4 percent in August, comfortably within the central bank’s 3–5 percent target band.

Food inflation edged up slightly to 7.7 percent from 7.6 percent in July, driven by rice and finger millet, but policymakers attributed the moderation to “stable food supplies” and prudent fiscal management.

With the October tender, the NFRA appears to be betting that stability will continue. The agency’s willingness to offload more than half a million tonnes suggests confidence that domestic reserves are adequate to cushion against future shocks.