Source: https://www.tanzaniainvest.com/
On August 21 2024, the United States, through the U.S. Agency for International Development (USAID), has announced an $83 million investment in nine Tanzanian agriculture and processing companies.
The investment aims to strengthen food security, improve nutrition, and expand market access for Tanzanian farmers and businesses.
The investment is part of a U.S. strategy to support Tanzania’s participation in the African Growth and Opportunity Act (AGOA).
AGOA is a program that provides duty-free access to the U.S. market for eligible sub-Saharan African countries. This initiative will help Tanzanian companies increase production, meet international standards, and boost exports under AGOA.
Key Areas of Investment:
Trade and Market Access: The initiative will improve infrastructure, reduce trade barriers, and create partnerships to increase exports under AGOA. This will help Tanzanian products compete better in the global market.
Agricultural Development and Fertilizer Access: The U.S. funding will help companies provide modern farming techniques, high-quality seeds, and fertilizers. This will increase crop yields and reduce food insecurity in Tanzania.
Nutrition and Health: The investment will focus on producing nutrient-rich foods, which will improve the nutritional status of Tanzanian communities.
Beneficiary Companies
Silverlands Tanzania: Silverlands will receive support to expand operations and improve export opportunities.
Bakhresa Group: Bakhresa will be supported in expanding its production capacity and export capabilities.
Mohamed Enterprises Tanzania Limited (MeTL): MeTL will benefit from better infrastructure and technology to boost its agricultural and food processing operations.
Tanga Fresh: Tanga Fresh will use the investment to improve its dairy production and processing.
Kilombero Sugar Company: Kilombero Sugar will receive funding to increase sugar production and improve its facilities.
Yara Tanzania: Yara will provide farmers with better access to high-quality fertilizers, which will help increase crop yields.
Minjingu Mines & Fertilizer Ltd: Minjingu Mines will help increase agricultural productivity by supplying essential fertilizers and modern farming techniques.
East Africa Seed Company: This company will improve the quality and availability of seeds for Tanzanian farmers.
Export Trading Group (ETG): ETG will use the investment to enhance its trade operations and improve access to regional and international markets.
"This investment addresses critical areas such as food security, nutrition, and trade, which are essential for Tanzania’s economic stability. By partnering with the private sector and using AGOA, we are helping Tanzanian companies compete globally, which will bring more prosperity to the nation," the USAID/Tanzania Mission Director Craig Hart commented.
AGOA, established in 2000, provides eligible sub-Saharan African countries with duty-free access to the U.S. market for over 6,800 products.
Tanzania has been part of the program since its inception and also qualifies for textile and apparel benefits. In November 2023, Tanzania’s Minister of Industry and Trade called for an extension of AGOA beyond 2025, highlighting its importance for Tanzania and other eligible African nations.
This U.S. investment strengthens the economic partnership between the two countries and shows a shared commitment to sustainable development and economic growth in Tanzania.