Norway signs US$4.8M deal to boost Tanzania’s soybean industry

TANZANIA – Norway and Tanzania have signed a US$4.8 million agreement to strengthen Tanzania’s soybean sector through a partnership between the Private Agricultural Sector Support (PASS) Trust and the Royal Norwegian Embassy in Dar es Salaam.

The deal aims to improve productivity, market access, and job creation for an estimated 21,000 smallholder farmers across the country.

The project will focus on the full value chain, from seed production to processing and marketing.

According to the project brief, the three-year plan will promote the use of quality seeds, enhance processing, and strengthen links between farmers, cooperatives, and agribusinesses.

“We are pleased to sign an agreement with Private Agricultural Sector Support (PASS) Trust to launch the US$2.4 M Soybean Value Chain Support,” said Tone Tinnes, Norway’s Ambassador to Tanzania, in a social media post.

The US$4.8 million deal combines a US$2.4 million Norwegian grant with an equivalent PASS Trust guarantee mechanism that will unlock commercial lending for smallholder farmers.

Officials say this mix of grants and guarantees is expected to create a multiplier effect by attracting private sector financing to the agricultural space.

Tanzania’s Ministry of Agriculture welcomed the agreement, saying that increased soybean output will help the country cut back on costly imports and create new jobs in processing and animal feed production.

PASS Trust’s Executive Director noted that the programme will empower smallholder farmers through better access to certified seeds, extension services, and stronger producer groups. “The initiative will encourage agro-processors and feed mill operators to increase their investment in Tanzania’s agricultural economy,” he said.

Agricultural experts say Tanzania has the right conditions to grow soybeans at scale but has yet to fully use its potential. The new partnership intends to address long-standing issues such as limited seed supply, weak market linkages, and low use of farm machinery.

Broader development focus

For Norway, this project reflects a growing commitment to resilience and sustainable food systems in Africa. Its support aligns with broader development goals that promote agriculture as a key driver of poverty reduction and food security.

A farmer from Tanzania’s Lake Zone shared optimism about the programme’s potential impact. “Better seed and access to buyers means I can plan for more than subsistence,” he said.

Observers believe success will depend on smooth coordination among farmers, cooperatives, government agencies, and private sector actors, along with close monitoring to ensure that progress leads to tangible outcomes.

The agreement follows other recent agricultural developments in East Africa, including similar partnerships focusing on climate-smart farming and improved crop value chains. Together, these efforts highlight a regional push to strengthen food systems through local production, fair trade, and farmer-led growth.

If implemented as planned, the Norway–Tanzania pact could set a strong example for soybean development models across East Africa, linking farmers, markets, and industries toward a shared goal of food security and inclusive growth.

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