The Tanzania Cashew Board (CBT) has assured investors establishing processing factories in the country of adequate raw material supplies, seeking to address concerns that shortages could leave factories operating below capacity.
The Board's Director General, Mr Francis Alfred, said the institution would work to ensure investors who commit substantial capital to processing facilities have access to sufficient raw cashew nuts to sustain their operations.
“We want to ensure that investors who put their money into cashew processing factories do not end up with idle factories because of a shortage of raw cashew nuts,” he said.
He made the remarks during a cashew stakeholders' meeting organised by NMB Bank in Mtwara on November 7, bringing together processors, buyers and traders to discuss financing opportunities and challenges across the industry's value chain.
Mr Alfred said reliable supplies of raw cashew nuts were essential to attracting investment in domestic processing and achieving Tanzania's ambition of expanding its processing capacity by 2030.
He welcomed NMB's engagement with industry players, saying collaboration between financial institutions and businesses was important in increasing production and addressing financing challenges facing the sector.
He also called on other banks to engage directly with stakeholders to understand their financing needs and develop solutions that support the industry's growth.
Mr Alfred further urged financial institutions to ensure timely payments to farmers, saying delays could undermine their ability to meet financial obligations and prepare for subsequent production seasons.
Speaking at the meeting, NMB Bank's Head of Agribusiness for Wholesale Banking, Mr Christopher Mwalugenge, said the bank was prepared to support cashew businesses throughout the 2026/2027 marketing season.
He said NMB's financing solutions were intended to help auction buyers and primary-market participants secure sufficient cashew supplies while enabling domestic processors to obtain the raw materials needed to sustain factory operations.
“Our financing solutions are designed to support players across the cashew value chain, from those purchasing cashew nuts at auctions and primary markets to processors seeking reliable supplies for their factories,” he said.
For exporters, Mr Mwalugenge said the bank offered tailored financial solutions to facilitate timely purchases and support the fulfilment of international supply contracts.
He added that NMB had strengthened its payment and transaction services to facilitate commercial activities across the cashew value chain.
The engagement highlights the importance of financing in Tanzania's efforts to increase domestic cashew processing and retain more value from the crop.
However, expanding processing capacity will require more than investment in factories. Reliable supplies of raw nuts, access to working capital and timely payments to farmers will be equally important in ensuring that processing facilities operate sustainably.
Stronger coordination between financial institutions, processors, buyers and farmers is therefore expected to play a key role in addressing financing gaps and supporting the industry's ambition to expand domestic processing by 2030.