100Africa.com Editorial Team
Tanzania’s agricultural sector is set for a major transformation following the signing of a landmark Memorandum of Understanding (MoU) between the Agricultural Growth Corridors of Tanzania (AGCOT) and the Tanzania Agricultural Development Bank (TADB) on March 5, 2025. This strategic agreement could position Tanzania as a global competitor in the soy, avocado, apples, and mangoes markets—collectively valued at $202.95–212.95 billion worldwide.
A Strategic Partnership to Unlock Billions
The MoU, signed by Geoffrey Kirenga, CEO of AGCOT, and Frank Nyabundege, Managing Director of TADB, establishes a collaborative roadmap to scale Tanzania’s production, processing, and export capabilities of value chains including the four high-value crops.
Kirenga highlighted Tanzania’s untapped agricultural potential, emphasizing that the country possesses the land, climate, and workforce necessary to become a global agricultural powerhouse. While avocados are already gaining traction, soy, apples, and mangoes remain largely underdeveloped markets with enormous opportunities. He underscored AGCOT’s role in infrastructure development and TADB’s financial backing as crucial enablers in modernizing value chains, attracting investment, and ensuring that smallholder farmers benefit from the sector’s growth.
Nyabundege reaffirmed TADB’s commitment to de-risking agriculture by providing affordable credit, improving technology access, and strengthening market linkages for farmers and agro-processors.
Why These Crops?
Tanzania is at a turning point in its agricultural transformation, with four key crops—soy, avocado, apples, and mangoes—offering immense potential for food security and export-driven economic growth.
Soy: A $65–70B Global Market Opportunity
Tanzania’s soy production ranges between 100,000 and 200,000 metric tons annually, meeting only 30–40% of domestic demand. This shortfall results in an annual import bill exceeding $100 million. With Africa’s poultry industry rapidly expanding, increasing soy output presents a strategic opportunity to transform Tanzania into a regional hub for livestock feed and plant-based proteins. Investments in high-quality seeds, irrigation systems, and processing infrastructure could boost local production and position Tanzania as a leading player in Africa’s growing protein market, reducing dependency on costly imports.
Avocado: Unlocking a $15B Global Market
Tanzania’s avocado exports to the European Union and the Middle East are rising, but post-harvest losses and certification barriers hinder scalability. The country’s favorable climate for Hass and Fuerte varieties provides a competitive edge, yet investments in GlobalGAP certification and processing facilities are essential to unlock premium markets. Compliance with organic and Fair Trade standards could open doors to high-value consumer segments, enabling Tanzania to compete with leading exporters such as Kenya and Peru. By addressing these bottlenecks, Tanzania could secure a larger share of the lucrative global avocado market.
Apples: A $55–60B Market with Untapped Potential
Despite minimal domestic production, Tanzania’s highlands offer ideal conditions for cultivating climate-resilient apple varieties. Over 90% of the country’s apple consumption currently relies on imports. However, with targeted investments in cold-chain infrastructure and climate-smart apple farming, Tanzania could reduce import dependency while developing a niche in tropical apple cultivation. This could position Tanzania as a regional competitor to established apple producers such as South Africa.
Mangoes: Converting Losses into a $67.95B Market
Tanzania produces between 300,000 and 400,000 metric tons of mangoes annually, yet post-harvest losses reach 40–50% due to poor handling and limited processing facilities. Establishing processing hubs could convert these losses into high-value products such as juices, dried fruit, and snacks for global markets. With rising demand for clean-label tropical fruit products, improving post-harvest handling and securing export certifications would allow Tanzania to capitalize on its mango production fully. As Kirenga noted, “Mangoes give us a competitive edge—we can supply when other regions are off-market.” This seasonal advantage allows Tanzania to dominate export windows when other global producers are out of season.
A Roadmap to Success
The AGCOT-TADB partnership is designed to transform Tanzania’s agricultural sector by integrating value chains and addressing key challenges. A major focus is on creating an ecosystem that supports the establishment of processing hubs to minimize post-harvest losses and enhance value addition, ensuring that more of Tanzania’s agricultural output is processed locally rather than wasted. Additionally, strengthening climate resilience is a priority, with efforts directed toward promoting drought-tolerant crops and expanding irrigation systems to mitigate the risks of climate change. The partnership also aims to enhance global market access by fostering strategic partnerships and ensuring compliance with stringent EU and U.S. export standards, unlocking high-value markets. Furthermore, empowering farmers is at the core of this initiative, with investments in training programs and digital tools designed to boost productivity, increase efficiency, and promote economic inclusion across the agricultural value chain.
The Bigger Picture: Tanzania’s Agro-Export Vision
In collaboration with the government under President Dr. Samia Suluhu Hassan, Tanzania’s private sector is working towards a bold and transformative vision: positioning Tanzania as the granary of Africa and a key contributor to global food security. By leveraging its fertile land, strategic location, and expanding agricultural infrastructure, the country is poised to become a significant agro-export hub. The focus on soy, avocado, apples, and mangoes is crucial in realizing this ambition, unlocking new opportunities for economic growth and international trade.
Investing in these four high-value crops will create thousands of new job opportunities across the agricultural value chain. From smallholder farmers to large-scale agribusinesses, the sector will generate employment in farming, logistics, agro-processing, and export operations. With increased productivity and enhanced processing capabilities, Tanzania can build a robust agricultural workforce, empowering rural communities and ensuring inclusive economic growth.
By scaling up domestic production, Tanzania aims to reduce food import dependency, keeping more value within the local economy while strengthening its resilience against global food price fluctuations. Expanding exports of processed agricultural products will increase foreign exchange earnings, making agriculture a major driver of national revenue. This shift will enhance Tanzania’s trade balance, allowing the country to invest further in infrastructure, research, and technological advancements to boost productivity.
Furthermore, Tanzania strategically positions itself as a sustainable agro-export hub for Asia, Europe, and the Middle East. With rising global demand for high-quality, organic, and Fair Trade-certified agricultural products, Tanzania’s favorable climate and growing capacity for certification compliance provide a unique competitive edge. By integrating climate-smart agriculture, advanced post-harvest technologies, and streamlined export logistics, the country is set to expand its footprint in international markets while promoting sustainability and food security at home and abroad.
Challenges and Opportunities
Tanzania’s soy production remains inadequate, meeting only 30–40% of domestic demand, forcing reliance on imports to sustain its poultry industry. Meanwhile, avocado production ranges between 50,000 and 70,000 metric tons per year, with growing exports to the EU and the Middle East. However, limited post-harvest infrastructure and compliance with global certification standards restrict scalability.
Mangoes dominate Tanzania’s horticultural sector, but only 10,000–15,000 metric tons are exported, with significant losses due to inadequate processing and logistics. Apples remain a negligible crop, with annual production below 5,000 metric tons, making Tanzania heavily dependent on imports.
Strategic interventions aim to reverse these trends, including:
- Cold-chain infrastructure to support apple and mango storage.
- Focus on export-quality production for avocados.
- Farmer training programs to improve certification compliance.
By modernizing these value chains, Tanzania seeks to secure a larger share of the $200 billion global market for these high-value crops.
Building a Sustainable Future
Through AGCOT-TADB partnership, Tanzania is taking a bold step toward agricultural modernization. Scaling domestic soy production could save the country over $100 million annually, while mango processing hubs in regions like Mtwara could significantly reduce post-harvest losses and boost exports.
With climate-smart investments, strategic partnerships, and market-driven policies, Tanzania is well-positioned to become a sustainable agro-export powerhouse in Africa and beyond.