Tanzania has called on private investors to establish a coffee processing plant in Nyasa District, Ruvuma Region, in a move aimed at boosting local farmers’ incomes and enhancing value addition in the country’s coffee sector.
The appeal was made on Monday in Parliament by Deputy Minister of Industry and Trade, Dennis Londo, in response to a question from Nyasa Member of Parliament John Nchimbi about the government’s commitment to build a coffee processing facility, as promised by President Samia Suluhu Hassan.
Deputy Minister Londo said the Nyasa District Council produces an average of 2,193.3 tonnes of Arabica coffee annually, underscoring the district’s potential as a coffee processing hub. “The government has allocated land in Ndanda Hamlet, Kingiritiki Village, Kingiritiki Ward for the construction of the plant,” Londo told Parliament.
The site covers four hectares (approximately 10 acres) and is equipped with basic infrastructure, including access roads, water supply, and electricity, making it ready for immediate construction. Londo emphasized that the government is seeking private sector participation to accelerate project delivery and ensure operational efficiency.
MP Nchimbi questioned why the government had not implemented the project directly, noting that reliance on private investors could prolong its completion. In response, Londo said implementation had already begun, citing the distribution of two million coffee seedlings to local farmers. “This initiative has increased coffee production and demonstrates the government’s commitment to advancing the project,” he said.
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Tanzania is Africa’s seventh-largest coffee producer, with coffee accounting for a significant share of the country’s agricultural exports. Most of the crop is grown by smallholder farmers, who face challenges such as limited access to processing facilities, poor post-harvest handling, and fluctuating global prices.
The planned processing plant in Nyasa District is expected to add value locally, allowing farmers to sell processed coffee rather than raw beans, potentially increasing incomes and improving the competitiveness of Tanzanian coffee in global markets. Value addition is also aligned with the government’s broader industrialisation and agro-processing agenda, which aims to stimulate economic growth in rural areas.
Industry experts note that Tanzania has lagged behind other East African nations, such as Kenya and Uganda, in coffee processing, with most exports leaving the country as raw beans. Establishing processing plants near production zones can reduce logistics costs, improve product quality, and enable local branding of specialty coffee.
Deputy Minister Londo said the government is ready to support investors by facilitating land allocation, ensuring infrastructure availability, and providing guidance on regulatory approvals. He urged investors with experience in coffee milling, roasting, and packaging to take advantage of the opportunity in Nyasa District.
The government’s call for private sector involvement reflects a shift toward public-private partnerships (PPPs) in Tanzania’s agricultural sector. Such collaborations are seen as essential for scaling production, improving processing capabilities, and integrating smallholder farmers into formal supply chains.
Coffee plays a critical role in rural livelihoods, employing millions across Tanzania and contributing significantly to foreign exchange earnings. According to the Tanzania Coffee Board, the country exported over 50,000 tonnes of coffee in 2025, earning roughly US$150 million, with Arabica varieties commanding higher international prices due to their quality.
The Nyasa plant, once operational, is expected to support local farmers, create jobs, and strengthen the district’s economy while reducing reliance on raw coffee exports. Officials say the initiative will also complement broader efforts to promote sustainable farming practices, climate resilience, and rural development in southern Tanzania.
The project reflects Tanzania’s ongoing strategy to boost agricultural productivity, develop agro-industrial zones, and encourage private investment in sectors that add value to the country’s key commodities. If successful, it could serve as a model for other coffee-growing regions in the country seeking to move up the value chain.
