Tanzania bars debt-default coffee buyers from next season

Dodoma. Government has directed Regional, District Security and Defence Committees to ensure all buyers with outstanding debts to coffee farmers and other crops are barred from participating in crop purchasing next season, a measure aimed at protecting farmers’ interests and eliminating payment disputes in the sector.

Speaking on Saturday, June 6, 2026, at a coffee-sector meeting held in Dodoma Minister of Agriculture, Mr Daniel Chongolo, said the government will not issue licences to any buyer who has not paid farmers debts.

He said the Cooperative-Development Commission together with Tanzania Coffee Board (TCB) should take action against individuals or associations causing payment disputes to farmers in order to strengthen transparency and trust in coffee business.

Mr Chongolo said the government has received reports of success in controlling smuggling of crops from Misenyi and Kyerwa districts and congratulated leaders of those areas for good management of farmers’ crops.

He said coffee has continued to be one of important commercial crops in the country earning Tanzania more than $400 million last year and becoming second crop in foreign exchange earnings after tobacco.

The minister said coffee demand in world market continues to increase, while Tanzania continues building reputation of producing high quality coffee with strong international competitiveness.

He emphasized importance of increasing production alongside coffee quality through the use of quality seedlings, strengthening extension services, and investment in coffee-processing to add value before trading in both domestic and international market.

“We do not want to see extension officer without knowledge behind farmers. We need experts with ability to help farmers use technology and modern methods,” he said.

In another development, TCB in collaboration with PASS Trust have launched Fertiliser-Loan Guarantee Scheme (FCGS) for coffee farmers aimed at facilitating access to inputs and increasing production of the crop programme scheme.

PASS Trust Director of Business Development, Mr Adam Kamanda, said institutions have invested a total of Sh12 billion in that programme where TCB contributed Sh6 billion and PASS Trust same amount

He said funds will be used as loan guarantee for farmers and expected to enable provision of fertiliser loans worth more than Sh75 billion annually.

“This programme aims to remove obstacles facing farmers in accessing inputs on time and increasing productivity in coffee production,” said Mr Kamanda.

On her part TCB Chairperson of Board of Directors, Ms Prof Aurelia Kamuzora, said stakeholders in that sector discussed various issues including market access, production of quality seedlings, youth and women participation, as well as monitoring of coffee crop development plan.

He said Tanzania aims to reach production of 300,000 tonnes of coffee per year from 86,000 tonnes currently through ongoing improvements in the sector.

Parliamentary Standing Committee Chairperson on Industries, Trade, Agriculture and Livestock, Mr Khalid Nsekela, said achievements of coffee sector should not be measured only by increase in production, but by how they improve lives of farmers and increase competitiveness of Tanzanian coffee in the world market.