• Tanzania rules out new taxes to reassure investors in cashew sector

• Production expected to exceed 600,000 tons in 2025/2026 season

• Government targets 60% local processing by 2030 through industrial parks

Tanzania is working to attract foreign investment into local processing as it looks to move up the value chain in its fast-growing cashew industry. That message was emphasized by Alfred Francis, director general of the Cashew Board of Tanzania (CBT), in comments to Ecofin Agency on March 24.

Amid recent speculation about a possible new tax on cashew processors—mirroring the existing export levy on raw nuts—and concerns over changes to the current system allowing processors to source directly from cooperatives before auctions, Francis dismissed the reports.

“If there were any changes, they would be officially announced. We have no intention of introducing a tax on cashew kernels. These rumors are aimed at damaging the country’s image and discouraging investors, so that some players can continue benefiting from the raw nut export model. We want to attract more investors into the cashew industry,” he said.

More broadly, Francis said Tanzania’s cashew sector is on a strong upward trajectory. The country, Africa’s second-largest producer after Côte d’Ivoire, has more than doubled its output since the 2021/2022 season, rising from about 240,000 tons to over 600,000 tons expected in 2025/2026.

“We provide cashew farmers with subsidies covering 100% of the cost of inputs used to fight pests and diseases, so they pay nothing. With this support, farmers can use biological pesticides to effectively control the main threats affecting orchards. At the same time, we have distributed more than 20,000 seedlings to support plantation expansion and renewal. This combination of subsidized inputs, improved planting material, and favorable conditions has boosted productivity. Our target for the next season is 750,000 tons, with a goal of reaching 1 million tons by 2030,” he explained.

On the processing side, Tanzania has been implementing a strategy centered on industrial parks, including a 636-hectare site in Maranje, in the Mtwara region, where part of the infrastructure is already in place.

“In this special economic zone, investors benefit from free land, access to electricity, water, and roads, as well as significant tax incentives. Warehouses are already under construction, and investors have begun setting up factories. By 2030, we aim for at least 60% of production to be processed locally. We are now inviting investors to come to Tanzania and establish operations in our industrial park, as the country offers a highly attractive environment. Cashew production is rising rapidly, ensuring raw material availability, and we also benefit from a seasonal advantage compared with other origins. We have the best quality cashew nuts in Africa. More than 95% of our production in the last season had a kernel outturn above 48, with large sizes and white kernels valued by global markets,” Francis added.

Espoir Olodo