In the 2020/21 cashew season, Tanzanian cashew farmers have produced 206,718 tones of RCN. However, the lack of Cashew processing factories has lost Tanzania’s vital foreign revenues and thousands of jobs. The minister of state in the Prime Minister’s Office responsible for investment William Olenasha said “The Government of Tanzanian is planning a tax incentive for local Cashew Processing Companies to promote the production of cashew kernels for international export”. Tanzania is one of the largest raw cashew nut producers in Africa, with exports providing 10-15 % of Tanzania’s foreign exchange. The country is the eighth-largest grower of cashew nuts in the world and ranks fourth in Africa.

=> P/S: Tanzania Cashews Harvest Season: Beginning: October – End of season: January, February

90% of the Tanzania cashew exports are destined for India, Vietnam... and almost entirely in raw cashew nuts with low prices.

90% of the Tanzania cashew exports are destined for India, Vietnam… and almost entirely in raw cashew nuts with low prices.

Cashew Is a Major Crop of Tanzania

Tanzania is the eighth-largest grower of cashew nuts globally and ranks fourth in Africa, providing 20% of Africa’s cashew nuts. At the time, cashew nut exports contribute 10-15% of Tanzania’s foreign exchange. The total planted area with cashew in Tanzania Mainland nuts was 695,683 ha. About 90 % of the area is planted with cashew nuts found in three regions of Mtwara, Lindi, and Pwani.

  • Mtwara: 327,281 ha – 47.0% – (had the largest area planted with cashew nuts)
  • Lindi: 207,951 ha – 29.9%
  • Pwani: 91,815 ha – 13.2%

In the 2020/21 cashew season, Tanzanian cashew farmers have produced 206,718 tones of RCN. However, the lack of Cashew processing factories has lost Tanzania’s vital foreign revenues and thousands of jobs. 90% of the Tanzania cashew exports are destined for India, Vietnam… and almost entirely in raw cashew nuts with low prices. The total volume of raw cashew nuts (RCN) Tanzania Exported to Vietnam in the first 4 months of 2021 was 131.757 tons, worth 191 million USD. In addition, The Tanzanian government has been facing challenges in finding potential investors to revive the cashew processing industry in Tanzania. The Tanzania GOV aims to triple raw cashew nuts production to 1 million tons over the next five years.

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=> Related article: Vietnam Imported 1.15 Million Tons RCN In The First 4 Months of 2021

90 % of the area planted with cashew nuts found in three regions of Mtwara, Lindi, and Pwani.

90 % of the area is planted with cashew nuts found in three regions of Mtwara, Lindi, and Pwani.

Tanzanian Gov Tax Exemption For Cashew Industry

The government has put in place several tax incentives including exemption of corporate tax for 10 years, Value Added Tax (VAT) by 100 % to capital goods, and 100 % withholding tax exemption to interests of loans sourced internationally rent, and dividends. Also, the government provides 100 percent custom duty exemptions to machinery and equipment. Following the new measures and procedures, a total of five local cashew factories in Tanzania have been registered.

William Olenash said, “The government will continue offering different tax and non-tax attraction measures to attract investment including allocating special areas for the construction of factories in the cashews producing areas in the country.” According to him, those special areas will be provided with all support services and infrastructures such as electricity, water, and roads as well as levies imposed on machinery, equipment, parts, and packaging materials.

Peeling raw cashew nut at local cashew factory tanzania

Peeling raw cashew nut at local cashew factory Tanzania

Tanzania GOV Encourages to Priority Sell RCN to Local Factories

According to a recent report, in April/2021 – at least 2,021.7 tonnes of RCN were purchased by 9 Local cashew nut factories, they will process RCN into cashew nut kernels that meet international export standards such as W180, W210, W240, W320…, with a higher value than RCN. The Tanzania GOV has introduced the cashews primary market system in the 2020/21 production season, enabling domestic processing factories to buy RCN for raw materials in their processing without competition at low prices. Tanzania GOV will continue attracting more farmers to take their produce to the international market.

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=> Related article: Tanzania Produces 206,718 Tons Raw Cashews 2020/21 Crop

Grading cashew nut kernel at local cashew factory Tanzania

Cashew Processing Tanzania – Grading cashew nut kernel at local cashew factory from Tanzania

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