For international investors seeking high-growth opportunities, Tanzania’s agricultural sector presents a compelling landscape ripe with potential. Driven by ambitious government initiatives and significant year-on-year growth, the nation is positioning itself as an agricultural powerhouse, offering substantial returns across diverse crops and value chains.
The Agriculture Annual Report 2023/2024 highlights remarkable progress and outlines strategic interventions designed to attract and support foreign investment.
A Nation Committed to Transformation
Tanzania’s commitment to agricultural transformation is encapsulated in Agenda 10/30 and the Agricultural Transformation Master Plan 2050 (AMP 2050). These ambitious frameworks aim to achieve:
- 10% agricultural growth rate annually
- USD 5 billion in agricultural exports by 2030
The sector’s performance in FY 2023/2024 underscores this trajectory:
- Exported crops reached USD 3.54 billion, a 51.9% increase from USD 2.33 billion in 2022/2023.
- The Ministry of Agriculture’s budget rose 29.2%, to TZS 970.79 billion, reflecting robust government investment.
Vast Untapped Potential
Only 24% of Tanzania’s 44 million hectares of arable land is under cultivation. With 33.2 million hectares still available and significant irrigation potential, Tanzania offers a solid foundation for large-scale commercial farming and agro-industrial ventures.
High-Yielding Crops: Profitable Opportunities
- Cashewnuts → Export value surged 229% to USD 372.4M (2023/24). With 90% exported raw, huge ROI exists in processing factories.
- Tobacco → Export earnings climbed to USD 453.8M (+144%). Supports 2.5M Tanzanians.
- Legumes/Pulses → Exports totaled USD 506.81M, with strong markets in India, Asia, and local feed industries.
- Horticulture → Exports grew to USD 267.5M. Avocados alone rose from USD 77.3M to USD 100.9M. Strong demand in EU/Asia.
- Cotton → USD 183.3M in exports; employs 600,000 farmers across 17 regions.
- Coffee → USD 209M in export earnings; supports 450,000 households.
- Cassava → Massive unmet demand for starch and dried chips, particularly in China.
- Oil Seeds → High domestic demand with a 350,000-ton production gap; huge processing opportunities.
- Pyrethrum → Expanding global demand for natural pesticides.
Beyond Production: Value Chain Opportunities
- Agro-Processing: Milling, oil refining, juicing, animal feed, and essential oils.
- Post-Harvest Infrastructure: Warehouses, pack houses, and cold chains to reduce losses.
- Agri-Inputs: Fertilizer, pesticide, and herbicide manufacturing (95% currently imported).
- Mechanization: Machinery assembly plants and service centers.
A Conducive Investment Environment
Tanzania has established a strong framework to attract investors:
- Tanzania Investment Act (1997) & PPP Act (2018) guarantee investor protection.
- The Tanzania Investment Centre (TIC) serves as a one-stop facilitation agency.
- Incentives: 100% import duty exemption on capital goods, tax holidays, and automatic quotas for skilled expatriates.
The government’s Building a Better Tomorrow (BBT) program will engage 1.6M youth in agriculture and allied services, creating a skilled and empowered workforce to drive transformation.
AGCOT: Driving Corridor-Based Growth
At the heart of this agricultural revolution lies the Agricultural Growth Corridors of Tanzania (AGCOT).
- Born from the success of SAGCOT (Southern Agricultural Growth Corridor of Tanzania), AGCOT is now scaling the corridor approach nationwide.
- By 2030, AGCOT will coordinate inclusive, climate-smart, market-driven growth across Southern, Central, Northern, and Mtwara corridors.
- AGCOT connects government, private sector, financiers, and farmers to unlock investment-ready opportunities and ensure sustainability.
AGCOT’s Contributions to Tanzania’s Green Gold:
- Mobilized over USD 6.34B in cumulative investments (2010–2024), exceeding targets five years ahead of schedule.
- Enabled youth- and women-led agribusinesses to emerge as exporters and processors.
- Doubled smallholder productivity in key crops like rice, potato, and avocado.
- Anchors the national strategy to achieve USD 100B AgGDP by 2050.
🌍 Your Invitation to Invest
Tanzania offers not just fertile land and abundant resources, but a proven, scalable model backed by strong government commitment and AGCOT’s facilitation.
Investors are encouraged to explore the Regional Investment Guides via the Tanzania Investment Centre (www.tic.go.tz), UNDP, and ESRF to identify tailored opportunities.
💡 The time to invest in Tanzania’s green revolution is now.
Join AGCOT and the nation in cultivating prosperity and unlocking Africa’s agricultural future.