TIB signs agreement with TANECU to enhance cashew-nut production

The Tandahimba Newala Cooperative Union (TANECU) Chairperson Yusuf Nnamla (left) and the Tanzania Investment Bank (TIB) Managing Director Peter Noni (right) sign a Memorandum of Understanding (MOU) that seeks to enhance the processing of raw cashew nuts (RCN), value addition and creation of wealth to farmers in Mtwara region.

The Tandahimba Newala Cooperative Union (TANECU) Chairperson Yusuf Nnamla (centre) stresses a point to journalists shortly before signing a Memorandum of Understanding (MOU) with Tanzania Investment Bank (TIB). Looking on is the TIB Managing Director Peter Noni (right) and the Mtwara Regional Commissioner Joseph Simbakalia (left)

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By Staff Reporter.

THE Tanzania Investment Bank (TIB) has signed a Memorandum of Understanding (MOU) with the Tandahimba Newala Cooperative Union (TANECU) that seeks to enhance the processing of raw cashew nuts (RCN), value addition and creation of wealth to farmers in Mtwara region. Speaking during the signing ceremony held at TIB Head Office in Dar es Salaam yesterday, the TIB Managing Director Peter Noni said the agreement signed will enhance value addition through the construction of a processing plant that will be built in Mtwara.

Noni said the processing factory will be in position to produce between 30-40 tonnes each month. “With the processing factory in place, cashew nut farmers will now fetch better prices since the market will be readily available.

“Many banks do not give loans to farmers because they do not have guarantee for a ready market. This can be reflected through the hard times cashew nut farmers have been going through in the past few months. Through the factory that will be built, we will have ready market for produce that can even penetrate to the international markets,” he said.

He said cashew nut farming has recently been relying on middle- men who exploit farmers especially during big harvest seasons something that undermines the crop’s total production.  He said the project will be financed by TIB to a tune of 80 percent while TANECU will be responsible for financing the remaining 20 percent of the project that is expected to start in July after completion of a feasibility study and business plan.

The TANECU Chairperson Yusuf Nnamla during the event said the agreement is a milestone in cashew nut production since the region is the country’s leading cashew nut producer. 

He said this year’s cashew nut season has broken the country’s production record registering a record 157,000 tonnes from 142,000 tonnes that have been produced ever in the country’s history. “Cashew nut farmers will now have a readily available market. Farmers should brace themselves for better prices that will improve their living standards,” he said.

The Mtwara Regional Commissioner Joseph Simbakalia said farmers will be in position to fetch better prices with emphasis on value addition urging farmers to support the project. “We are so greatful for T.I.B for having trust in our region. We will continue supporting the project at different levels to ensure that the project serves to its expectations,” he added.