TUKUYU, Tanzania — September 5, 2025. Tanzania’s president and ruling CCM presidential candidate, Dr. Samia Suluhu Hassan, has ordered a government task force to assess under-utilized tea estates held by Mohamed Enterprises Tanzania Ltd (MeTL) and Watco, signaling the state’s intent to take back the farms and factories and reallocate them to farmer cooperatives after outstanding debts to workers and growers are settled.
“We have directed that these investors settle their debts rapidly before the government takes over the farms,” Dr. Samia told supporters at a campaign rally in Tukuyu, Rungwe District, adding that a technical team is already evaluating the estates and processing plants.
The move, framed as part of a broader tea-sector fix in Tanzania’s Southern Highlands, follows months of farmer complaints over idle estates and arrears. Dr. Samia said the original public-private model—allocating estates to investors on condition they build factories and add value before export—had “not been fulfilled,” and that ownership would shift to cooperatives “under government oversight” once liabilities are cleared. (Remarks delivered in Kiswahili at the rally; translated.) Video of the announcement and local reports circulated widely on Tanzanian social media and news outlets over the weekend.
Beyond repossession signals, the president promised immediate cushioning for producers—notably avocado and tea farmers in Rungwe—pledging 50 cold-storage centers nationwide (two in Rungwe) so farmers aren’t forced to sell at a loss. “These centers will be able to store avocados for up to three months,” she said, aligning the timing of sales with international price cycles.
Why this matters globally
- Land governance & investor obligations: The signal to reclaim estates for non-performance highlights Tanzania’s emphasis on use-it-or-lose-it concessions—an approach the country has taken before. In 2020, authorities revoked titles to six MeTL farms in Tanga for being idle, setting a precedent that today’s action appears to echo.
- Supply-chain resilience: Reallocating estates to cooperatives and reviving factories could stabilize East Africa’s tea supply at a time of volatile global prices and climate stress. The Rungwe–Mufindi–Njombe belt accounts for the bulk of Tanzania’s tea output. (Context corroborated across sector reporting.)
- Election-season policy: The announcement lands eight weeks before Tanzania’s October 29, 2025 elections, placing agricultural revitalization—and accountability for concession holders—at the heart of CCM’s re-election message.
What was announced (at a glance)
- Task force: Government team formed to audit estates and factories allocated to MeTL and Watco in Rungwe.
- Repossession signal: If investors failed to meet obligations, farms and plants will be taken back and transferred to cooperatives. Debts to workers and farmers must be paid first.
- Price-buffer infrastructure: 50 avocado preservation centers (cold storage), including two in Rungwe, to reduce distress sales and improve farm-gate prices.
The quotes
- “We have directed that these investors settle their debts rapidly before the government takes over the farms.” — Dr. Samia Suluhu Hassan, Tukuyu rally, Sept. 5, 2025.
- “These centers will be able to store avocados for up to three months,” enabling farmers to sell into better market windows. — Dr. Samia Suluhu Hassan.
The open questions
- Due process & timeline: Authorities have not yet published the audit results, legal timeline, or transfer mechanics for shifting titles or factory assets to cooperatives. (Outlets report the task force formation but no schedule.)
- Company responses: As of press time, no public responses from MeTL or Watco were reported by the outlets we reviewed.