Coastal Biotech partners TFA on US$20M organic fertilizer project in Tanzania

TANZANIA – Coastal Biotech Ltd., a Zanzibar-based company, has partnered with the Tanganyika Farmers Association (TFA) to boost sustainable agriculture in Tanzania with a US$20 million investment in organic fertilizer.

This initiative, announced during TFA’s annual meeting on December 2 in Arusha, aims to establish an organic fertilizer production facility leveraging seaweed as the primary raw material.

While the plant’s production capacity has not yet been revealed, construction work is expected to begin in 2025.

According to Coastal Biotech’s Director, Steven Sillah, the use of organic fertilizers can lower input costs by US$590 per hectare and increase yields by up to 35%.

This aligns with a global trend favoring organic farming, as consumers increasingly demand food grown without synthetic chemicals. The seaweed-based approach also supports local economies by utilizing Zanzibar’s abundant marine resources, which are noted for their purity and sustainability.

“By adopting organic fertilizers, we could reduce costs for farmers by $590 per hectare, just on inputs. With these solutions, farm yields could increase by up to 35%,” the manager emphasized.

Tanzania has one of the lowest rates of chemical fertilizer use in sub-Saharan Africa. However, data compiled by the International Fertilizer Development Center (IFDC) indicate that usage is growing.

Projections indicate consumption could reach 1 million tonnes in 2024/25, up from 710,641 tonnes in 2023. This represents a 20% increase from the 840,000 tonnes used in the previous season, reflecting growing recognition of the role of fertilizers in enhancing agricultural productivity and food security.

Despite these efforts, Tanzania remains heavily dependent on imports, which currently fulfill about 86% of the country’s fertilizer needs. Fertilizer usage in Tanzania was estimated at just 9.3 kg per hectare of arable land in 2021, far below the 50 kg per hectare recommended by the Abuja Declaration of 2006.

The government, however, has bet to reduce the import burden through investments.

Recently, the Tanzania Investment Center (TIC), TFRA, and the Tanzania Petroleum Development Corporation (TPDC) signed a Memorandum of Understanding (MoU) with ESSA of Indonesia to develop a new fertilizer plant in the Mtwara region.

This ambitious project, valued at Sh3.5 trillion (US$1.3 billion), is slated to span from 2024 to 2029 and will leverage Tanzania’s vast natural gas reserves, which total 54.57 trillion standard cubic feet.

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