Tanzania to establish four new cashew processing factories by 2025/26 season

Newala. The Tanzanian government has announced plans to build four new cashew processing factories in the southern regions by the 2025/26 season, as part of its strategy to boost local processing and add value to cashew exports.

The announcement was made by Agriculture Minister Hussein Bashe during the launch of a new factory for the Tandahimba and Newala Cooperative Union (Tanecu) in Mmovo Village, Newala District.

The new facilities will include a factory at the Maranje Industrial Cluster in Mtwara Rural District, two additional factories in Tandahimba and Newala Districts under Tanecu, and a fourth owned by the Tunduru Agricultural Marketing Cooperative Union (Tamcu).

Minister Bashe stated that the projects must be completed ahead of the 2025/26 cashew trading season.

“This project should be completed before the 2025/26 season to fully utilize the two new warehouses, each with a 10,000-tonne capacity, at Maranje Industrial Cluster,” said Bashe.

The new Tanecu factory, a Sh3.4 billion investment in Newala, has a processing capacity of 3,500 tonnes of raw cashew nuts annually.

Mr Bashe also called for an additional factory to be built in Tandahimba District and emphasized the importance of increasing cashew processing capacity to raise export value.

He further directed Tamcu to raise Sh600 million by the end of the season, with additional investment from the Tanzania Agricultural Development Bank (TADB) and CRDB Bank, to establish their processing plant.

Mr Bashe also announced the government's mobilization of Sh20 billion for the creation of the Tanzania Commercial Bank, which will be headquartered in Dodoma, with branches planned for Mtwara, Tandahimba, and Kilimanjaro.

The new bank will require cashew buyers to hold accounts for purchasing licenses and payment processing.

He urged Tanecu to seek financial support from banks and assured the government’s backing in resolving certification issues to facilitate the export of organic cashew kernels at better prices.

Tanecu General Manager Mohamed Mwinguku detailed that the Sh3.4 billion investment includes a Sh1.903 billion loan from CRDB Bank, with Tanecu contributing Sh1.497 billion from internal revenues.

The factory is expected to generate substantial revenue, with potential sales reaching Sh147 billion once fully operational.

The new factories are part of Tanzania’s broader efforts to reduce raw cashew nut exports and establish itself as a key player in the global cashew market.