• Tanzania opens major rice mill in Kahama, costing over $39 million

• Project to source paddy from local farmers, boost value chains

• New capacity expected to support rice exports in East Africa

A new rice mill has begun operations in Tanzania, according to a statement published on Jan. 31 on the website of the Tanzania Investment and Export Zones Authority (TISEZA). The facility was built at an estimated cost of more than 100 billion shillings ($39.56 million). Located on a 54-hectare site in the Kahama district, the plant was developed by local company KOM Food Products Ltd.

While its processing capacity was not disclosed, TISEZA said it is one of the country’s most significant agro-industrial projects. The mill is expected to source most of its paddy rice from a network of local producers in the Shinyanga region.

“Beyond industrial output, the project is expected to strengthen agricultural value chains in Shinyanga Region by providing a stable market for paddy rice produced by smallholder farmers,” the statement said. “The investment supports Tanzania’s broader strategy to expand domestic agro-processing, enhance food security, and retain more value within the country by shifting more of the rice value chain — from farming to milling and packaging — into local production.”

Export ambitions

Tanzania has been self-sufficient in rice for several years and exports surplus production to the East African sub-region. Data from the Ministry of Agriculture show that local output averaged 2.43 million tonnes per year between the 2019/2020 and 2023/2024 seasons.

Over the same period, domestic needs were estimated at nearly 1.2 million tonnes per year. In this context, the start of operations at the new Kahama mill is expected to raise local processing capacity and increase volumes available for export.

“KOM Food Products said it plans to scale up production in phases to meet rising domestic demand and explore regional market opportunities in East and Southern Africa,” TISEZA added.

Tanzanian rice exports have been uneven in recent years. According to data from the Trade Map platform, the country exported an average of nearly 387,066 tonnes of milled rice per year between 2020 and 2024, with a peak of 622,422 tonnes in 2022.

Over the same period, export revenues averaged nearly $191 million per year. Main destinations include Uganda, Kenya, Rwanda and the Democratic Republic of Congo.

KOM Food Products’ ambition to eventually export part of its output could allow Tanzania’s rice industry to gain a larger share of the East African cereal market. Trade Map data show that East African Community (EAC) countries imported nearly 2.6 million tonnes of cereals in 2024, valued at about $1.14 billion.

Stéphanas Assocle