Tanzania cashew processors call for incentives to boost local value addition, meet production targets
Processors urge government support through tax breaks, loans, and fair levies to enhance cashew value addition and job creation.
TANZANIA – The Tanzania Association of Cashew nuts Processors (TACP) has called on the government to introduce targeted incentives to stimulate investment in local cashew processing, as the country aims to process all cashew nuts produced nationally within the next five years.
According to TACP secretary John Nkundwanabake, although domestic cashew processing has seen progress in recent years, it remains far below the government’s goal of processing one million tonnes annually.
Nkundwanabake, who also owns Akros Cashew Processing Company, emphasized the need for incentives such as tax reductions and subsidised loans to accelerate growth in the sector.
Tanzania produced 528,260 tonnes of raw cashew nuts during the 2024/25 season, earning over TZS 1.52 trillion (US$563.6M) in export revenues.
The Bank of Tanzania’s February 2025 Monthly Economic Review estimates provisional earnings at US$583.7 million, with the final figure expected to surpass US$600 million.
However, Nkundwanabake expressed concern over high levies on processed cashew nuts, citing a TZS 2,280 (US$0.85) charge per kilogram, which adds to transportation costs and hampers competitiveness.
He also criticized local banks for being hesitant to finance cashew processors, citing fears of loan defaults.
According to Minister for Industry and Trade Selemani Jafo, Tanzania currently has 57 cashew nut processing factories, located in Ruvuma, Lindi, Mtwara, Pwani, Singida, Katavi, and Dar es Salaam.
Of these, only 36 factories are operational, while 21 remain idle due to issues such as limited capital, outdated machinery, obsolete technology, poor international marketing skills, and difficulty accessing raw materials due to foreign competition.
Despite these obstacles, domestic processing capacity has shown growth—from 6,628 tonnes in 2020/21 to 26,656 tonnes in 2023/24, according to official figures. This progress is attributed to the introduction of the initial auction market, which has improved access to raw cashews for local processors.
Nkundwanabake argued that additional government support could enhance processors’ ability to compete with foreign buyers in auctions and help achieve full value addition.
He noted that processing 5,000 tonnes of cashews creates over 1,000 jobs, and foreign exchange earnings could rise by more than 50% if exports shift from raw to processed nuts.
He concluded that investing in local processing would not only boost the economy but also significantly expand employment and export revenue.
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