Tanzania commissions US$40M rice mill to expand processing capacity, regional exports
While the company has not disclosed the plant’s installed processing capacity, TISEZA described the project as one of the largest local agro-industrial investments currently.
TANZANIA – Tanzania has commissioned a large-scale rice milling facility in Kahama district, reinforcing its position as Africa’s fourth-largest producer of milled rice after Nigeria, Egypt, and Madagascar.
In a press release published on January 31, the Tanzania Investment and Special Economic Zones Authority (TISEZA) announced that the new rice mill has entered its production phase.
The facility, developed by local agribusiness firm KOM Food Products Ltd, is located on a 54-hectare site in Kahama and is estimated to cost more than 100 billion Tanzanian shillings (US$39.56 million).
While the company has not disclosed the plant’s installed processing capacity, TISEZA described the project as one of the largest local agro-industrial investments currently underway in the country’s rice sector.
The mill will source most of its paddy rice from a network of local producers in the Shinyanga region, a major rice-growing area in northwestern Tanzania.
Beyond industrial production, the project is expected to strengthen agricultural value chains in the Shinyanga region by providing a stable market for paddy rice produced by smallholder farmers.
“The investment is part of the national strategy to develop agri-food processing, strengthen food security and capture more added value in the country by internalizing more stages of the chain, from agricultural production to processing and packaging,” TISEZA stated.
Rising output supports export ambitions
Tanzania has remained self-sufficient in milled rice for several years, allowing it to export surplus volumes to neighboring markets.
According to data from the Ministry of Agriculture, national rice production averaged about 2.43 million tonnes per year between the 2019/2020 and 2023/2024 seasons.
Over the same period, domestic consumption was estimated at close to 1.2 million tonnes annually, leaving a sizable exportable balance.
Against this backdrop, the commissioning of the Kahama mill is expected to further increase domestic processing capacity and support a larger, more consistent export surplus. TISEZA noted that KOM Food Products plans a phased ramp-up of operations, initially targeting domestic demand before expanding sales into regional markets.
“KOM Food Products has indicated that it plans a gradual ramp-up to meet growing domestic demand and explore regional markets in East and Southern Africa,” the authority said.
However, Tanzania’s milled rice exports have fluctuated in recent years. Trade Map data indicates that between 2020 and 2024, the country exported an average of about 387,066 tonnes of milled rice annually, with shipments peaking at 622,422 tonnes in 2022.
Export revenues over that period averaged nearly US$191 million per year. Uganda, Kenya, Rwanda, and the Democratic Republic of Congo were among the leading destinations.
Positioning within the East African market
Trade Map figures show that all East African Community (EAC) member states collectively imported around 2.6 million tonnes of rice in 2024, valued at approximately $1.14 billion.
Capturing a larger share of this market would require not only higher output but also reliable quality, competitive pricing, and year-round availability.
By anchoring its operations on local paddy supplies and expanding modern milling capacity, KOM Food Products’ entry into the sector aligns with Tanzania’s broader agri-industrialization agenda.
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