KOM Food Products Ltd has invested more than TZS 100 billion in a large-scale rice processing project in Kahama District, Shinyanga Region, marking one of the largest domestically financed agribusiness investments in Tanzania.
The project, owned by a Tanzanian investor, is registered with the Tanzania Investment and Special Economic Zones Authority (TISEZA) and has benefited from government investment incentives, including exemptions on import duties for capital goods such as processing machinery, trucks, and iron and steel materials used in constructing the factory.
The facility is built on a 54-hectare site and was officially registered in 2024. Commercial production began in January 2026, according to company officials.
The factory currently employs 55 workers, most of them Tanzanians, with employment expected to increase as production capacity expands and operations scale up.
“This project reflects the growing confidence of local investors in Tanzania’s industrialisation drive,” said Dr Jesca Kabalwa, Managing Director of KOM Food Products, during a site visit by officials from TISEZA.
“Government incentives and institutional support have significantly reduced capital costs and accelerated project implementation.”he added
The investment is expected to strengthen Tanzania’s rice value chain by expanding domestic processing capacity and reducing reliance on imported processed rice.
By adding value locally through milling, packaging, and distribution, the project supports national efforts to promote industrial growth, improve food security, and retain more economic value within the country.
KOM Food Products said the factory sources paddy rice from smallholder farmers in Shinyanga Region, creating a stable market for local producers.
The company said this arrangement helps increase farmers’ incomes, improve price stability, and encourage consistent production.
“We are committed to purchasing paddy rice from local farmers to ensure this investment benefits surrounding communities,” Dr Kabalwa said.
The project is also expected to generate indirect economic activity across transport, storage, logistics, packaging, and input supply chains, as demand for raw materials and related services increases.
The company said increased procurement of paddy rice could stimulate production volumes in the region and contribute to broader rural economic growth.
Officials from TISEZA said the site visit was part of a national campaign to promote domestic investment and showcase successful locally funded projects.
The government has identified agro-processing as a priority sector under its industrialisation strategy due to its linkages with agriculture, employment creation, and export potential.
“This project demonstrates how targeted incentives can unlock domestic investment in strategic sectors,” a TISEZA official said during the visit.
KOM Food Products said it plans to expand production capacity in phases to meet rising domestic demand and explore regional export opportunities within East and Southern Africa.
Increased output could contribute to stabilising rice supply, improving market efficiency, and reducing price volatility.
The company added that long-term performance will depend on consistent raw material supply, efficient distribution systems, and continued policy support for agro-industrial investments.
As Tanzania continues to push for economic diversification and manufacturing growth, large-scale domestic investments in agro-processing such as KOM Food Products are expected to play a role in strengthening agricultural value chains, creating employment, and supporting sustainable industrial development.