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Tanzania Invests $110mln in Cassava-Based Paper Production

Tanzania Invests $110mln in Cassava-Based Paper Production
Wednesday, 04 June 2025 16:10

(Ecofin Agency) - • Goodwill Tanzania launches cassava paper plant with $110 million investment
• Factory to process up to 300,000 tons annually depending on supply
• Project aims to diversify cassava use and develop industrial value chains

Tanzania, the sixth-largest cassava producer in Africa, is expanding the crop’s role beyond food production into industrial use. In April, private firm Goodwill Tanzania began construction of a cassava-based paper manufacturing factory in Mkuranga District.

According to Shira Chen, the company’s public relations manager, the $110 million facility is expected to begin operations around April or May 2026. Initially, it will process 50,000 tons of cassava annually, with plans to scale up to 300,000 tons depending on the capacity of local producers. The factory will supply paper and packaging to the domestic market while exploring regional and international opportunities.

Cassava is typically used for human and animal consumption in Tanzania, with limited industrial applications. Economist Dr. Hildebrand Shayo sees this initiative as a way to diversify the crop’s usage, raise farm gate prices, and create value chains across agriculture, transport, processing, and packaging. “This project could make cassava a strategic product for the industry, similar to Nigeria. Exporting cassava paper products could improve Tanzania’s export revenues, strengthen its trade balance, and significantly increase demand for superior cassava variety,” Shayo noted.

Local farmers are expected to benefit from training, financial support, and structured agricultural contracts, according to Abdul Mohammed, cofounder of Kusini Gateway Industrial Park and partner in the project with Goodwill.

However, some economists have raised concerns about potential impacts on food supply. Isaac Safari warned that growing industrial demand could increase cassava prices in local markets and disrupt availability for human consumption, posing risks to food security.

Cassava remains one of Tanzania’s main food crops, alongside maize, rice, and bananas. Data from the Ministry of Agriculture shows cassava production rose by 20.1%, reaching 9.3 million tons in 2023/2024.

If well managed, the cassava paper factory could become a model for inclusive industrialization, linking smallholder farming with manufacturing. The initiative may help reposition cassava as a strategic tool for sustainable economic development.

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