CAC News

Dar es Salaam, Tanzania — Tanzania has emerged as the leading cashew processing hub in East Africa in 2025, recording its highest processing levels in the past five years as the country intensifies efforts to increase domestic value addition in the cashew sector.

According to industry data, Tanzania processed approximately 20,000 metric tons (MT) of cashews in 2025, marking a 67 percent increase compared to 2024. The country now accounts for 52 percent of total cashew processing capacity in East Africa, reinforcing its position as the region’s processing leader.

Across East Africa, total cashew processing reached 38,500 MT in 2025, representing a 5 percent year-on-year increase. Tanzania’s strong growth has played a significant role in driving this regional expansion.

Industry analysts attribute the surge in processing to Tanzania’s strategic focus on expanding domestic value addition and reducing exports of raw cashew nuts (RCN). For many years, African cashew-producing countries exported large volumes of raw nuts to Asia for processing. However, governments across the region are increasingly investing in local processing industries to capture greater economic value.

A key catalyst behind Tanzania’s recent progress is the development of the Cashew Agro-Industrial Park in Mtwara, a major infrastructure project designed to expand processing capacity and support the country’s growing cashew industry. Once fully operational, the facility is expected to significantly strengthen Tanzania’s ability to process more of its own cashew production domestically.

Market observers note that the continued expansion of local processing in Tanzania and across Africa could gradually reshape global cashew trade flows.

“If African processing continues to grow, the volume of raw cashew nuts available for export could tighten,” industry analysts say. This could create increased competition for supply among traditional importing countries such as India and Vietnam, both of which rely heavily on raw cashew imports from Africa to feed their large processing industries.

The development highlights a broader trend in the global cashew industry, where producing countries are increasingly seeking to retain more value within their domestic economies by processing cashews locally rather than exporting raw commodities.

Reference: Ecofin Agency