Tanzania: Cashew nut processing plants will be repossessed

GOVERNMENT in collaboration with Consolidated Holdings Corporation (CHC) is proposing measures to be taken against investors who have failed to develop cashew nut processing companies.

Deputy Minister for Agriculture, Food and Cooperatives, Mr Adam Malima said companies handed over to investors both local and foreign that were not performing will be taken back.

Mr Malima was responding to a question raised by Mr Masoud Abdallah Salim (Mtambile-CUF), who demanded to know what steps government was taking against investors who were supposed to operate cashew nut processing factories in Lindi and Mtwara.

Mr Salim said that despite taking over the factories, investors have failed to operate them thus causing more cashew nuts from the country being exported raw denying government billions of shillings in revenue.

“Cashew nut processing factories in Lindi and Mtwara regions were handed to investors but surprisingly these companies for a number of years are still unproductive.

What plans does government have for these companies,” Mr Salim asked. Responding, Mr Malima said that most of the investors failed to operate the cashew nut processing factories due to challenges including increased operational costs, lack of reliable power supply and unskilled labour coupled with outdated technology.

He said that according to previous proposals so far reached by the ministry it was suggested that any company that went unproductive for certain period of time had to be taken back by government and issued to another strategic investor who is too economically strong to operate.

The deputy minister said government was doing all it could to ensure that all cashew nut processing factories in the country operate at full capacity to increase productivity and offer more employment opportunities to Tanzanian youth.

Source: dailynews.co.tz