TFA secures $150m to boost Tanzania’s agricultural sector

Arusha. The Tanganyika Farmers Association (TFA) has secured agreements worth $150 million for the construction of two factories aimed at boosting Tanzania’s agricultural output, particularly in sunflower seed production and organic fertilisers.

TFA has signed a contract with Mkulima Coops Limited, a subsidiary of Ukraine’s Peter & Burg Ltd, to build a high-quality sunflower seed factory in Tanzania. This agreement, valued at $130 million, aims to address the country’s sunflower seed shortage and reduce reliance on imports.

The factory is expected to significantly enhance domestic production of cooking oil.

In a separate agreement, TFA has partnered with Coastal Biotech Ltd., based in Germany, for the construction of an organic fertiliser factory.

This facility, valued at $20 million, will use marine raw materials to produce fertilisers, offering a sustainable alternative to traditional chemical inputs.

The contracts were officially signed yesterday during TFA’s annual general meeting in Arusha, attended by over 5,000 shareholders.

TFA’s Executive Director, Justine Shirima, emphasised that the projects would begin implementation in 2025, with the goal of achieving self-sufficiency in cooking oil production.

This will also help farmers avoid counterfeit inputs that have resulted in significant losses.

“By ensuring a reliable supply of high-yielding modern seeds, we will save farmers from the scarcity of quality sunflower seeds and other losses,” Shirima said.

Tanzania currently produces around 205,000 tonnes of cooking oil annually, falling short of the national demand of 570,000 tonnes, creating a heavy reliance on imports. The annual import bill for edible oil stands at approximately $126 million.

Ukraine, a major producer of sunflower oil, has been one of the world’s leading exporters. In 2022, Ukraine produced 5.9 million tonnes of sunflower oil, accounting for 31 percent of global production.

The resident director of Mkulima Coops Ltd, Bakari Duchi, announced that construction would begin in January 2025, with completion expected shortly thereafter. Meanwhile, Coastal Biotech Ltd’s resident director, Steven Sillah, stated that fertiliser production would begin in the next rainy season to ensure a steady supply for TFA farmers.

TFA member Simon Marunda called for more government research into plant diseases, which have been causing widespread losses. The Ministry of Agriculture’s Secretary-General, Gerald Mweli, assured that measures would be taken against the adulteration of agricultural inputs.