Cashewnuts produced in Mtwara Region have secured a lucrative market in Europe, with the country set to sign a Memorandum of Understanding (MoU) to formalize the partnership.

The announcement was made by Ikunda Terry, Executive Director of the Agricultural Non-State Actors Forum (ANSAF), during the forum’s 15th Anniversary and 12th Annual General Meeting (AGM) held recently in Dar es Salaam.

Terry revealed that discussions between ANSAF and the European buyer are at an advanced stage, with the MoU expected to pave the way for collaboration on quality assurance and traceability. 

"After signing the MoU, the buyer will deploy an expert to oversee quality standards in production and processing and to ensure traceability, helping farmers meet the European market requirements," he said.

The partnership will target farmers' groups in Newala and Tandahimba Districts—areas renowned for cultivating high-quality cashews. 

Under the deal, the European buyer will offer premium prices and work closely with farmer groups to ensure production aligns with EU standards.

To support this initiative, five acres of land have been allocated for the construction of a state-of-the-art cashew nut processing facility in Maputi Village, Maputi Ward, Newala District. 

The plant, envisioned as a pilot project with potential for expansion, will initially process 1.5 tons of cashew kernels per day and create 150 jobs, primarily for women and youth.

The project is part of a broader initiative titled “Women’s Empowerment Through Collective Cashew Processing and Marketing for Improved Livelihoods in Southern Tanzania (CASH-WIN)”, funded by the Bill and Melinda Gates Foundation through its “Beyond Collective Farming” (BCF) program.

The CASH-WIN project, implemented by ANSAF, aims to support 1,000 farmers in the Mtwara and Lindi regions by enhancing local processing capacities, particularly for women-led enterprises. 

The blueprint for the facility is currently being developed by the Small Industries Development Organization (SIDO), with a long-term goal of ensuring that all cashews produced in Mtwara are processed locally.

The $350,000 funding from the Gates Foundation will not only boost processing infrastructure but also support farmer training and market access. “ANSAF acknowledges the vital role of women in agriculture,” Terry emphasized, citing that 98 percent of economically active rural women in Tanzania are engaged in agriculture, compared to a sub-Saharan Africa average of 55 percent. 

Nationally, about 81 percent of Tanzanian women work in the agriculture sector.

“Women are involved across the value chain—from farming and livestock keeping to fishing, processing, value addition, and marketing,” he added. “This is why we’ve channeled these funds to empower women and support farmers in Mtwara and Lindi.”

Tanzania produces over 300,000 metric tons of raw cashew nuts (RCN) annually, with Mtwara, Lindi, and Ruvuma regions contributing approximately 80 percent of national production. However, despite generating around US$1 billion in export earnings, 87 percet of cashews are exported in raw form—highlighting the need for local value addition.

“The lack of domestic processing capacity not only limits economic benefits but also sidelines women, who are often excluded from value addition opportunities,” Terry noted. “That’s why the CASH-WIN project is focused on reversing this trend in the southeast regions.”

To maximize the benefits of collective action, ANSAF has mobilized cashew processor groups in Newala District and continues to encourage more farmers to organize and register. These groups will gain better bargaining power, improved access to training, and a more structured market engagement.

Cashew farmers in Newala have already formed a union—UVIWAKONE (Union of Cashew Processors in Newala District)—to collectively benefit from the project and tap into the European market. 

Terry urged more farmers to join the union, stating, “We want them to benefit collectively and take advantage of this high-potential opportunity.”