TANZANIA: TIB to finance cashew nut processing plant

TANZANIA Investment Bank (TIB) yesterday signed a Memorandum of Understanding (MOU) with the Tandahimba Newala Cooperative Union (TANECU), seeking to enhance processing of raw cashew nuts, adding value to the cash crop and creating wealth to farmers in Mtwara region.

TIB Managing Director Peter Noni, speaking at the signing ceremony at the bank's Head Office in Dar es Salaam, said the signed deal will enhance value addition through construction of a processing plant to be built in Mtwara. Mr Noni said the processing plant will have monthly processing capacity of between 30 and 40 tonnes.

"With the processing factory in place, cashew nut farmers will now fetch better prices offered by the readily available market.
"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," said Mr Noni, assuring that the processed produce would even penetrate to the international markets.

Cashew nut farming has recently been relying on exploitative middlemen, the situation that undermines the crop's total production.
Mr Noni said the bank will finance 80 per cent of the project, with TANECU catering for the remaining 20 per cent of the project scheduled to start in July after completion of a feasibility study and business plan.

TANECU Chairperson Yusuf Nnamla described the agreement as a milestone in cashew nut production, saying this year's cashew production has broken the country's production record, with 157,000 tonnes from the historic record of 142,000 tonnes.

"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.

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 appreciate T.I.B for having trust in our region - we will continue supporting the project at different levels to ensure that it meets expectations of stakeholders," he said.

Source: http://dailynews.co.tz/index.php/biz/5421-tib-to-finance-cashew-nut-processing-plant