By Mwanamkasi Jumbe
Over 500 cashew nut farmers across Tanzania are set to benefit from new loans extended by NMB Bank, a move expected to accelerate the government’s ongoing drive to increase local processing and value addition within the lucrative cashew sector.
According to Wilfred Ngajiro, from the NMB Bank Foundation, the financing is being offered in partnership with the Rabo Foundation through a project dubbed “Add Value to the Cashew Nuts.” The initiative aims to eliminate financial obstacles that smallholder farmers typically face when applying for loans, including collateral requirements, limited financial literacy, and weak relationships with formal financial institutions.
“Through this project, collateral requirements have been waived to allow farmers to access loans easily and invest in modern processing equipmentThis will enable them to increase productivity, process more cashews locally, and earn higher returns from value-added products,” said Ngajiro.
Mr. Ngajiro added that the project targets 300 farmer groups trained by NMB Bank in sustainable cashew farming, financial literacy, and business management. The goal is to turn farmers into small-scale processors capable of selling roasted and packaged cashew nuts – which command higher prices in both domestic and export markets – instead of relying on bulk raw nut exports.
“We want farmers to move up the value chain, from producers to processors. This is how we can transform livelihoods and ensure more value stays within Tanzania’s economy,” he noted.
Government targets 100pc local processing by 2030
The initiative supports the government’s wider vision, championed by the Cashew Nuts Board of Tanzania (CBT), to ensure that all cashew nuts produced in the country are processed locally by 2030, targeting an annual production of one million tonnes.
According to Mankiro Maregesi, CBT’s Processing Manager, the board is implementing several strategies to achieve this goal – including connecting farmers and cooperatives with financial institutions, facilitating market access, and ensuring affordable access to processing technologies.
“We’re thrilled to partner with institutions like NMB Bank,” said Maregesi. “Such collaborations bring us closer to our goal of transforming Tanzania from a raw cashew exporter into a leading producer of processed, high-value cashew products.”
He highlighted the rapid progress in domestic processing capacity. In the 2024/2025 season, Tanzania processed 136,000 tonnes of cashew nuts, more than double the 62,000 tonnes recorded in 2023/2024. For the 2025/2026 season, the target is to process at least 60 percent of the country’s total output.
Farmers feel the impact
On the ground, the new financing model is already improving livelihoods. Rehema Mnowele, a cashew farmer from Tulindane Village in Newala District, Mtwara Region, said her women’s group of five members secured a TSh 5 million loan from NMB Bank, supplementing their own savings of TSh 2 million to purchase small processing machines and raw materials.
“The loan has changed our lives,” said Mnowele. “Each of us can now process a sack of cashew nuts daily. Our earnings have improved, we can pay school fees, and our families are living better.”
Cashew industry outlook
Tanzania remains one of Africa’s top cashew producers, with the southern regions of Mtwara, Lindi and Ruvuma accounting for more than 80 percent of total production.
The 2025/2026 marketing season, launched earlier this month, is expected to see increased farm-gate prices, better cooperative management, and enhanced local processing capacity, driven by public-private partnerships like the NMB–Rabo Foundation initiative.
As Tanzania positions itself as a value-added cashew hub, stakeholders believe that continued investment in farmer financing, technology, and cooperative strengthening will be key to unlocking the sector’s full potential – turning cashew farming from a seasonal activity into a sustainable rural enterprise.
📊 Cashew at a Glance (2025/2026 Season)
| Indicator | Status / Target |
| National Processing Target | 60% of total production |
| Government Goal by 2030 | 100% local processing of 1 million tonnes |
| Cashew Processed (2024/25) | 136,000 tonnes |
| Cashew Processed (2023/24) | 62,000 tonnes |
| Top Producing Regions | Mtwara, Lindi, Ruvuma |
| Key Export Markets | India, Vietnam, Netherlands |
| Leading Financiers | NMB Bank, Rabo Foundation, CRDB Bank |
| Cashew Exports (2024) | Valued at over US$ 250 million |
