Tanzanian agriculture is one of the most demandable sectors, and Tanzanian nuts are well known for their tastes and quality. To produce cashew nuts, Tanzania is the 8th largest producer globally and 4th in Africa. Additionally, this country produces several types of nuts, contributing to both local consumption and export revenues. Specific sectors of the nut industry are experiencing difficulties. In contrast, others eagerly anticipate investors’ arrival to address the issues in Tanzania.

The nut industry offers investors an excellent opportunity to make a meaningful impact. They can support communities while capitalizing on a growing market.

Cashew nuts are Tanzania’s most vital nut export, placing the country among the world’s largest cashew producers. Primarily grown in the southern coastal regions of Mtwara, Lindi, and Ruvuma, cashews have been critical components of Tanzania’s agricultural economy for decades. The country’s bulk of the produce is targeted at various international markets, particularly India and Vietnam.

Cashews are primarily grown in the southern coastal regions of Mtwara, Lindi, and Ruvuma. They have been necessary to Tanzania’s agricultural economy for decades. Most of the produce is targeted at international markets. India and Vietnam are the primary buyers of Tanzanian cashews.

Production and Processing – Tanzania has a well-established cashew industry of over 424,142 farmers. In the 2023/24 season, Tanzania produced 305,014 metric tonnes of cashew nuts, which fetched $227 million in export revenue. However, since most cashew nut processing facilities are underdeveloped, they are mainly processed abroad. One of the major problems is that raw cashew nuts create lower profit margins when compared to processed nuts. Efforts are growing to build more processing facilities for cashews in the country. This can significantly increase revenue from this nut.

Challenges and Opportunities – Some critical challenges for Tanzania’s cashew industry include price volatility. Farmers are affected by global demand and disruption to supply chain systems. Inadequate access to fertilizers and pesticides reduces the quality and quantity of cashew yields. The government is investing in expanding processing capacity and access to markets. They provide financial and technical support to farmers with the help of private investors.

The Tanzanian cashew nut market is estimated to reach US$860.25 mln in 2029 at a CAGR of 4.48%.

As a well-established industry, investors would have the chance to create excellent opportunities, leading to growth in the sector and its businesses.

Other significant nuts produced in Tanzania include groundnuts and peanuts. Most people in the Dodoma, Tabora, Shinyanga, and Singida regions produce groundnuts. Unlike cashew nuts, groundnuts serve as both a food crop and cash crop for farmers in Tanzania. These provide protein and health-enhancing oils to local communities. The surplus is then exported to neighboring countries. 

Production Practices—Groundnut farming in Tanzania is usually smallholder in nature. The is usually less demanding than other crops. This makes it very attractive to farmers looking to diversify their agricultural operations. The country is the second-largest producer of groundnuts in East Africa. With an annual production of about  700,000 metric tonnes. However, production is generally affected by inappropriate rainfall patterns, coupled with several pest infestations.  Particularly those leading to diseases like the groundnut rosette virus.

Challenges and Innovations—The high-yielding groundnut varieties are of poor quality. Additionally, they are inadequately accessed, and improper post-harvest handling techniques are utilized. Innovations in farming practices will solve some challenges. If new investors come with improved seed varieties, better storage solutions, and mechanized farming tools, there is a high chance of ensuring fruitful growth. Groundnuts can greatly expand Tanzania’s agribusiness because there is a demand for oil and processed food. 

The Macadamia nut industry in Tanzania is relatively young compared to cashew nuts and groundnuts. But growth has fast-tracked the process. Production has occurred mainly in Arusha, Kilimanjaro, and the Southern Highlands. All these regions have appropriate climates for cultivation. Located near key markets in Europe and Asia, Tanzania is an excellent strategic location for producers of the nut type.

Emerging Growth—In recent years, international and local corporations have invested more in Tanzanian macadamia farming. The demand for this nut is usually high because it fetches better market value than other nuts due to demand in health-conscious markets. Tanzania attracts macadamia farmers due to low land and labor expenses. 

Limiting Factors to Growth—Realizing this industry’s full potential is difficult because some barriers exist. First, small-scale farmers usually lack technical expertise in raising macadamias. They cannot access good-quality seedlings. There is also an underdeveloped processing infrastructure. Farmers need better orchard management training, which leads to high yields. However, such opportunities taken by investors will increase as the sector grows, especially private-sector investment.

Almond production in Tanzania is still in its infancy but shows excellent potential as a commercial crop. The country’s highlands represent the most suitable areas for cultivation. Due to the exceptional demand for almonds emanating from Europe, the Middle East, and North America, it can also become a lucrative crop for farmers in Tanzania.

Expansion Opportunities—The development of the almond industry in Tanzania requires increased awareness of its profitability. It also calls for incentives to encourage farmers to grow the crop. Like macadamias, almonds realize a more lucrative price in international markets. Hence, they present a desirable export commodity. In addition, building processing plants would significantly boost the industry’s potential.  This will offer  Tanzania an added advantage of value addition before export.

Pistachios represent an untapped opportunity for this country’s agriculture. Although not widely cultivated in Tanzania, they offer great potential in this sector.

The pistachio tree prospers in dry conditions; therefore, areas in Tanzania might be suitable for its cultivation. Currently, the importation of pistachios into Tanzania is very high, so there is a local demand for this nut. Developing a local pistachio industry would reduce imports and create new avenues for export.

Challenges in Cultivation—Pistachio cultivation, however, has different problems regarding soil type, irrigation, and expertise in orchard management. Pistachio trees will also take several years to bear fruits; hence, farmers must also be patient investors in this crop. On the contrary, due to its high value in the international market, it can be a rewarding venture for daredevil people to take on this challenge.

Many successful organizations have targeted nut-cultivated farmers, and by helping them, they have achieved a successful business. Green Farms Nut Company is an example of this. The company currently services more than 450 growers throughout Southern Africa, providing technical, operational, and commercial expertise. GFNC aims to attain sustainability in integrated pest management and minimize chemical reliance. 

Over 40 years in the business, GFNC has secured an industry leader position in the macadamia industry. They also create jobs and develop communities. GFNC exports quality macadamia nuts all over the world, providing significant continents.

 New investors can build a successful venture by following this successful organizational model, which addresses the present concern and creates new initiatives. 

Nuts, particularly cashews, Macadamias, and almonds, are in high demand due to health-conscious consumers. Tanzania, near critical European and Asian markets, is an ideal location for nut production and export. The government supports infrastructure improvements and local processing through subsidies, making it an attractive investment destination.

The Tanzanian nut industry is diverse and has much room for further improvement. From traditional crops such as cashews and groundnuts to emerging ones, including macadamias and almonds, this sector is in a powerful position concerning its contribution to agricultural GDP. However, price volatility and limited processing capacities have various technical barriers. That has been progressively worked upon through infrastructure investment, sustainability, and farmer education, opening up such a promising industry. With proper support, Tanzania may soon be one of the leading players in the nut market globally.