Al Dahra signs US$100M deal with TISEZA to expand irrigated farming in Tanzania
The objective is to increase irrigated area significantly to drive food security and reduce dependence on seasonal rainfall.
TANZANIA – Al Dahra Agricultural Company and the Tanzania Investment and Special Economic Zones Authority (TISEZA) have signed a memorandum of understanding (MoU) to develop sustainable, irrigation‑based and digitally enabled farming systems in Tanzania.
According to the deal, the project’s estimated investment is up to US$ 100 million, prioritizing climate‑smart technologies, irrigation infrastructure and diversified cropping systems.
The partnership aims to identify and develop large‑scale agricultural land, accelerate high‑yield crop production and align with Tanzania’s long‑term food security and commercial agriculture goals.
Under the MoU, the UAE‑based agribusiness will work with TISEZA to target an initial 10,000 hectares of irrigated farmland, with a potential expansion to another 10,000 hectares.
TISEZA, established in 2025 under the Investment and Special Economic Zones Act No. 6, consolidates Tanzania’s investment promotion and SEZ functions into a single authority to streamline investor support, land access and facilitation of large projects.
It manages Special Economic Zones designed to attract foreign direct investment (FDI) and boost agro‑industrial development across the country.
The authority’s strategic priorities include agriculture value chains, agro‑processing infrastructure, and industrial diversification, offering incentives such as land access and fiscal benefits to qualifying investors.
TISEZA has been promoting multiple SEZs to catalyse industrial and agricultural investments, including zones near transport corridors that support export‑oriented operations.
A national priority
Agriculture remains a central pillar of the Tanzanian economy, contributing a large share of GDP and employing a majority of the rural workforce.
The country has vast arable land, with roughly 29.4 million hectares suitable for irrigation, yet only a fraction is presently utilised under modern irrigation systems.
This represents a significant opportunity to transition from predominantly rain‑fed agriculture to irrigated production, which can support year‑round cropping and higher yields.
Recent government and development partner initiatives focus on improving seed quality, input access and extension services to boost yields and diversify production beyond staples.
Despite recent increases in production, including record maize outputs, the broader commercialisation of agriculture, especially irrigated and value-added crops, remains constrained by limited infrastructure and finance.
Enhanced irrigation projects backed by both public and private capital aim to address these gaps.
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