Tanzania: Govt fights to revive cashew processing plants

THE government has reaffirmed its commitment in supporting cashew growers in Southern regions to sell processed crops by reviving ailing plants, a move targeted at increasing farmers incomes.

The commitment was made in the august house by the Deputy Minister for Agriculture, Food and Cooperatives, Godfrey Zambi, when responding to a supplementary question by Salum Barwany (Lindi urban-CUF) who wanted to know government plans to revive cashew processing plants in Lindi Region.

He said the government’s intention for reviving the cashew processing plants was to create employment and enable farmers sell processed crop at higher prices but the objective was yet to be attained given the fact that the plants were yet to be revived.

The legislator also asked the government to repossess the privatized plants which have remained idle for a long time. In reply, the deputy minister admitted that most of the plants were not in good condition, hence prompted the government to establish a committee to determine the plants status and operations of the factories.

We have identified four industries, and plans for reviving them is on pipeline, he said adding more will be constructed upon availability of financial resources.

He also urged investors and other stakeholders to increase the number of processing plants for co-operative societies and unions. Earlier, in his basic question, the MP wanted the government to explain total costs spent in construction of a cashewnut plant in Lindi.

Mr Zambi, said the Lindi cashewnut plant was constructed in 1977, it was one among eight factories that was funded by the 93.2m/- loans from World Bank.

He said the loan was spent in construction of cashewnut processing plants in Lindi, Mtama, Nachingwea, Masasi, Newala One, Newala Two, Likombe and Kibaha. Zambi said due to various challenges, namely lack of capital, poor management of cashewnut factories including Lindi plant, halted operations in 1996.

He said the industries were put under the then Parastatal Sector Re- form Commission (PSRC) for privatization. Statistics show at present, more than 70 per cent of cashew nuts grown mostly in the country’s coastal regions is exported in raw form.

Over the past four decades, Tanzanian cashew production had shown drastic drop down to 17,000 tons. However, due to concerted efforts made in mobilizing cashew farmers, between 1990 and 1991 and 1999 and 2000, cashew production increased nine-fold from 17,000 tonnes to 106,500.