Cashew Kernel Processing & Value-Added Export Unit (SEZ-Based)

Tanzania is experiencing a sustained FDI surge, with inflows reaching USD 1.7 billion in 2024 — the highest in a decade — driven by manufacturing, infrastructure, and services. The government is targeting USD 15 billion in annual FDI by 2026, backed by the landmark TISEZA Act 2025 which merged TIC and EPZA, streamlined permits, and established a national land bank. TANESCO issued a live tender for a 100MWp Solar PV Plant (deadline June 2025), and the Export Processing Zones Authority is actively soliciting investment proposals across its SEZ locations. Tanzania–Kenya MoUs signed in 2025 cover railway, gas pipeline feasibility, and trade facilitation, while cashew agro-processing remains critically underdeveloped — only ~10% of the 120,000-tonne annual harvest is processed domestically. Mobile money volumes exceed $60 billion annually against sub-20% bank penetration, creating a strong fintech lending opportunity. Post-election political risk is re-priced but legible, with Moody's affirming a B1 stable outlook and projecting 6% GDP growth.

Tanzania produces 120,000 tonnes of cashew annually yet only ~10% is processed domestically, representing a structural arbitrage gap as global demand for value-added nuts grows. The EPZA issued a live Call for Investment Proposals at SEZ strategic locations (deadline May 2025), with incentives including tax holidays and expedited permits under the newly enacted TISEZA Act 2025.

Market drivers:

- Tanzania is one of the world's largest cashew producers; cashew nuts are a top export commodity alongside gold

- TISEZA Act 2025 merged TIC and EPZA, offering streamlined one-stop investment registration and SEZ incentives

- EU Everything But Arms (EBA) and AGOA programmes give processed Tanzanian goods duty-free access to EU and US markets

Risks:

- Sporadic government bans on raw cashew exports create supply-chain uncertainty for processors

- Land access complexity and bureaucratic inter-ministerial coordination delays reported by existing investors