Tanzania approves major agribusiness plan worth US$640 million
The project aims to grow farm output and increase export earnings.
TANZANIA – Tanzania has taken another step toward expanding its agribusiness sector after the Ministry of Planning and Investment approved a large agricultural concession in Kilwa.
On November 29, the ministry formalized the handover of a 25,000 hectare estate to Pan Tanzania Agriculture Development. The Tanzania Investment and Special Economic Zones Authority confirmed the decision in a public statement and said the plan will attract foreign capital worth US$640 million.
Project leaders said the site will include a special export processing zone on 809 hectares. The zone will host factories that process cassava, cashew nuts, sesame, soybeans, fish and fruits. It will also host packaging facilities, livestock feed plants and units for alternative energy production.
The company plans to run modern farms in the rest of the concession to supply raw materials to these factories. Managers said they will use drones, GPS tools and IoT devices to support irrigation and farm oversight.
They also intend to work with more than 10,000 smallholder farmers through a procurement program that keeps a steady flow of crops into the facility. One official noted that “the model only works when small farmers take part in the chain and receive steady demand.”
Exports aimed at Asian markets
Project officials said they will direct most of the output to Asian buyers, including China. They expect the plan to raise crop output in several key value chains and bring in more earnings from farm and food exports. A senior planner said, “Tanzania needs strong processing sites so farmers can earn more and so the country can ship goods with added value.”
The new approval comes as Tanzania tries to move more of its farm goods into export markets. Agriculture already brings in nearly a third of the country’s commodity export earnings, and the government wants to grow that share by supporting processing and large-scale farm projects.
Recent developments show stronger interest from investors. Officials held a series of meetings in November to review new proposals in irrigation systems, oilseed processing and rice milling.
Local newspapers reported that the government aims to clear several more land requests before the end of the year so new firms can start construction in early 2026. One official involved in those talks said, “We want to move fast because investors keep asking for clarity.”
The Kilwa project now ranks among the biggest agribusiness plans in the country. Leaders in the sector expect it to create new markets for farmers and help Tanzania claim a stronger place in regional food trade.
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