ANSAF allocates US$350,000 to boost cashew processing in Tanzania

TANZANIA – The Agricultural Non-State Actors Forum (ANSAF) has allocated US$350,000 (TSh 923.45M) to support 1,000 smallholder farmers engaged in the cashew value chain across Tanzania’s Mtwara and Lindi regions. 

This initiative is part of the “Women’s Empowerment through Collective Cashew Processing and Marketing for Improved Livelihoods in Southern Tanzania” (CASH-WIN) project, which seeks to enhance local processing capabilities and strengthen market access for women-led enterprises.

ANSAF Executive Director Ikunda Terry confirmed that the project is currently funded by the Bill and Melinda Gates Foundation under the “Beyond Collective Farming” (BFC) program. The initiative aims to empower women processors by fostering capacity-building, improving financial inclusion, and facilitating access to sustainable markets.

Enhancing women’s role in Tanzania’s agricultural sector

Women constitute a vital force in Tanzania’s agricultural sector, with 81 percent of the female population engaged in farming, processing, and marketing activities. This figure surpasses the regional average of 55 percent in sub-Saharan Africa. 

ANSAF recognizes that strengthening women’s participation in value-added agricultural activities, particularly in cashew processing, is crucial for enhancing their livelihoods and economic stability.

Cashew farming remains a cornerstone of Tanzania’s agricultural economy, supporting over 600,000 smallholder farmers. 

The country produces more than 300,000 metric tons of raw cashew nuts (RCN) annually, with Mtwara, Lindi, and Ruvuma contributing approximately 80 percent of this output. 

Despite earning US$1B from cashew exports, an estimated 87 percent of the country’s cashews are exported in raw form, highlighting an untapped opportunity for local processing and value addition.

Expanding local processing capacity

Tanzania’s Cashew Board (CBT) has set targets to boost production to one million metric tons and process all raw cashews domestically by 2030. 

However, achieving this goal is hindered by challenges such as outdated processing technology, limited market access, and insufficient advocacy for policy reforms.

To address these challenges, ANSAF has partnered with two cashew farmers’ processor associations—KITAMA in Tandahimba and WAKORU in Ruangwa. 

As part of the CASH-WIN initiative, ANSAF is investing in infrastructure improvements, including renovating and equipping two processing centers and constructing a new cashew processing facility fitted with modern processing equipment. 

These efforts aim to enhance local processing efficiency and increase value addition within Tanzania’s cashew sector.

Government and private sector collaboration

The Tanzanian government has announced plans to establish four new cashew processing factories by the 2025/26 season. 

These facilities include a plant in the Maranje Industrial Cluster (Mtwara Rural), two factories under the Tanzania National Cashew Cooperative Union (Tanecu) in Tandahimba and Newala, and a processing plant operated by the Tunduru Agricultural Marketing Cooperative Union (TAMCU). 

These developments are expected to further strengthen the country’s capacity to process cashews locally and create employment opportunities for women and youth in the sector.