Cashew Kernel Shelling & Packaging Facility — Mtwara Coastal Belt

Tanzania is accelerating its position as East Africa's premier investment destination, with FDI rising to USD 1.7 billion in 2024 — the highest since 2014 — driven by infrastructure, manufacturing, and services. The Tanzania Investment Centre registered 842 projects worth USD 7.7 billion in 2024, the highest investment value since 1991. The newly enacted TISEZA Act 2025 merged TIC and EPZA, streamlining permits and establishing a USD 50 million threshold for strategic projects. Trade momentum is building rapidly: Tanzanian exporters gained full duty-free access to China on 100% of tariff lines from May 2026, bilateral China-Tanzania trade hit USD 11.28 billion in 2025 (up 27% YoY), and the Tanzania-Kenya Business Forum in May 2026 committed to eliminating all non-tariff barriers. Macro fundamentals remain compelling — 6% GDP growth, USD 6.3 billion in forex reserves, and private sector credit expanding at 23.5% — though investors must price in EU concessional finance uncertainty linked to post-election governance concerns, and protectionist tendencies toward regional traders (particularly Kenyan operators) signal a 'buy local' policy bias. TANESCO has issued a tender for a 100MWp solar PV plant, the Agriculture Growth Corridor initiative is catalysing agro-processing FDI, and the Standard Gauge Railway linking Dar es Salaam to Dodoma is operational, compressing logistics costs for inland producers.

Tanzania's raw cashew output hit a record 528,263 tonnes in the 2024/2025 season yet only 406,362 tonnes were processed locally, leaving a direct processing gap of over 120,000 tonnes — and the government has begun constructing a new industrial park in Mtwara with the first factory targeting 3,000-tonne capacity by late 2025. From May 2026, Tanzanian cashew exporters gained 100% duty-free access to China's market, dramatically widening the addressable premium-kernel export opportunity.

Market drivers:

- Record raw cashew production of 528,263 tonnes in 2024/25 with documented domestic processing shortfall

- Full zero-tariff access to China from May 2026 covering cashew kernels and by-products including cashew nut shell liquid

- Government tax incentives on capital goods imports for processing facilities under the TISEZA Act 2025 and Agriculture Growth Corridor initiative

- Standard Gauge Railway phase 1 operational, linking Mtwara-belt produce to Dar es Salaam port at lower logistics cost

Risks:

- Inconsistent application of tax incentives by Tanzania Revenue Authority (TRA) despite official TIC certificates

- Land access complexity for foreigners — joint venture with a local cooperative or Mtwara special economic zone structure required