Tanzania is courting investors to unlock its underutilised agricultural potential, with Prime Minister Mwigulu Nchemba pointing to millions of hectares of uncultivated land and irrigation opportunities as the country seeks to expand production and access a regional market of about 170 million people.
Dr Nchemba said investment opportunities extended beyond farming to agro-processing, storage, cold-chain facilities, transport, digital technology and financial services, areas that could help farmers reduce post-harvest losses, reach wider markets and earn more from their produce.
“Investment can contribute to food and nutrition services while creating tangible economic opportunities. We therefore welcome all of you to invest in Tanzania because, in a broader sense, investing in Tanzania also means investing in the entire regional market,” he said.
The Prime Minister was speaking on Tuesday, October 20, 2026, while leading a discussion on agribusiness investment on the sidelines of the Norman E. Borlaug International Dialogue in Des Moines, Iowa, in the United States.
The discussion brought together executives from agricultural research and technology companies, agro-industrial producers, seed manufacturers and crop protection businesses.
Dr Nchemba said Tanzania had about 44 million hectares of land suitable for agriculture, but only 10.8 million hectares were being cultivated, highlighting the scope for expanding production and attracting investment.
The country also has irrigation potential estimated at 29.4 million hectares, compared with about 727,280 hectares currently under irrigation, according to figures presented by the Prime Minister.
The figures point to a significant gap between the country's agricultural potential and the resources currently being used to produce food and commercial crops.
Closing that gap, however, will require more than expanding cultivated land. Investment in irrigation infrastructure, reliable access to quality seeds, modern farming equipment, storage facilities and efficient transport systems will be critical to improving productivity and making agricultural businesses commercially viable.
Dr Nchemba said the government had invested in irrigation schemes and seed production while introducing programmes to encourage young people to participate in agriculture, livestock keeping and fisheries.
He added that fiscal and non-fiscal incentives had been introduced to attract investors, describing the private sector as a key partner in increasing the value of agricultural products, expanding markets and creating decent jobs.
For farmers, the potential benefits lie in whether new investment can address persistent challenges beyond production, including limited access to markets, inadequate storage and the loss of produce before it reaches consumers.
Investment in processing and packaging could also enable Tanzania to capture more value from crops instead of relying mainly on the sale of raw agricultural commodities.
Warehousing and cold-chain facilities could help preserve perishable produce, while improved transport and digital services could connect farmers with buyers, processors and financial institutions.
The Prime Minister's pitch also focused on the role of technology in transforming agriculture, with Microsoft executive director for research and industrial innovation Ranveer Chandra highlighting the potential of artificial intelligence (AI) to improve farmers' decisions and productivity.
Dr Chandra said Microsoft established its agriculture programme about 10 years ago and had since undertaken several initiatives in Tanzania.
These included working with the MADE Alliance to support digital payment systems for 50,000 sunflower farmers and collaborating with telecommunications company Mawingu to expand connectivity and internet access in different parts of the country.
He also cited a partnership involving Absa Tanzania and Women in Tech aimed at training 5,000 women in AI.
According to Dr Chandra, the technology could help farmers increase incomes, improve productivity and reduce post-harvest losses by providing information to guide decisions on planting, irrigation and harvesting.
“AI should not be seen as a replacement for farmers, but as a tool to increase their knowledge and ability to make the right decisions,” he said.
He noted that farmers routinely made decisions based on experience or estimates, sometimes without access to sufficient information about weather conditions, water requirements and the best time to undertake particular farming activities.
AI-powered tools, he said, could reduce reliance on guesswork by providing more accurate information, although affordability and accessibility remained major challenges.
Making the technology available to smallholder farmers will be particularly important if digital agriculture is to benefit a broad section of the population rather than only large commercial producers.
Dr Chandra also suggested that Tanzania could become a regional hub for agricultural AI, leveraging its strategic position to connect markets across East and Central Africa.
Such a role, he said, would require systems capable of providing reliable information tailored to local farming conditions, rather than technology that simply generates general answers.
The discussion also explored opportunities to turn agricultural waste into industrial raw materials, demonstrating how investment could create additional value beyond conventional crop production.
Adolfo Vidal Ruiz, founder and chief executive of Mexico-based CeluNova, said his company produces fibres from pineapple leaves for use in manufacturing toilet paper and kitchen paper towels.
He said the company had already developed toilet paper made from pineapple fibres, which he described as absorbent and resistant to tearing.
The approach offers an example of how agricultural residues can become inputs for manufacturing, creating opportunities to diversify revenue from crops and develop industries linked to farming.
For Tanzania, similar investments could support rural employment, expand domestic manufacturing and create additional markets for agricultural producers.
The broader challenge is turning the country's agricultural resources into productive investments that generate measurable returns for farmers and businesses.
While Tanzania's land, irrigation potential and access to regional markets offer a strong basis for attracting investors, the benefits will depend on whether projects improve productivity, strengthen market connections and create sustainable commercial opportunities.
Dr Nchemba's message to investors was that Tanzania offered a gateway to a much wider market. For farmers and rural communities, the ultimate test will be whether that investment translates into better incomes, more jobs and a more competitive agricultural sector.