AfDB Approves $24.6m Loan to Boost Tanzania’s Agro-Industry and Rural Jobs

The newly approved financing will support a large-scale programme to revitalise ageing agricultural estates, modernise processing industries, and expand plantation capacity across several high-value crop sectors.

 

The African Development Bank Group’s Board of Directors has approved a US$24.6 million senior corporate loan for Mohammed Enterprises Tanzania Limited (MeTL), one of East Africa’s largest agro-industrial companies. The investment will dramatically expand and modernise Tanzania’s agricultural production, strengthen key value chains, and create thousands of jobs—particularly for women and youth in rural areas.

The project forms part of a broader US$74.7 million investment programme, co-financed by ILX B.V. and MeTL’s equity contribution, aimed at transforming Tanzania’s tea, sisal, and macadamia industries while promoting sustainable, climate-smart agriculture.

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Transforming Tanzania’s Agro-Industrial Landscape

The newly approved financing will support a large-scale programme to revitalise ageing agricultural estates, modernise processing industries, and expand plantation capacity across several high-value crop sectors.

Key Project Components Include:

• Rehabilitation of old tea estates

• Conversion of 1,000+ hectares into certified organic tea plantations

• Upgrading processing factories to double tea production capacity

• Establishing 15,000 hectares of new sisal plantations

• Developing a new 200-hectare macadamia farm

• Improving rural infrastructure such as roads, irrigation, and power

• Providing modern agricultural machinery and post-harvest equipment

• Strengthening value chains to connect smallholder farmers with markets

Together, these investments will enhance Tanzania’s ability to produce globally competitive agricultural products, increase export revenues, and improve the livelihoods of rural communities.

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Impact: More Jobs, Higher Incomes, and New Export Earnings

According to the African Development Bank, the programme is expected to:

• Create more than 1,400 jobs, with priority for women and youth

• Generate over US$10 million in new annual export earnings

• Contribute around US$36 million in fiscal revenue for Tanzania

• Strengthen the incomes of smallholder farmers, especially women

• Reduce rural poverty by improving market access and boosting productivity

By integrating thousands of farmers into formal value chains, the project will help increase household income, build resilience, and reduce the vulnerability of rural populations.

A Win for Both Farmers and the National Economy

AfDB Chief Investment Officer Charles Orwothwun, who led the project team, said the investment represents a transformative moment for Tanzania.

“This partnership is about transforming potential into prosperity,” he said. “By combining innovation, sustainability, and inclusion, we are helping Tanzania build a more resilient agricultural future that works for its people and the planet.”

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Strengthening a Homegrown Agro-Industrial Champion

Founded in the 1970s, MeTL is one of Tanzania’s most established and diversified companies. The firm operates:

• Multiple bulk storage facilities

• Agro-processing factories

• Vertically integrated farms

• Supply chain networks linking farmers to major markets

Its specialised agro-industrial division will lead project implementation, bringing decades of expertise in large-scale farming, processing, and logistics.

MeTL’s involvement ensures that the project is grounded in local knowledge, domestic value addition, and long-term sustainability.

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Supporting Climate-Smart and Inclusive Agricultural Growth

The African Development Bank has made agricultural transformation a strategic priority, emphasizing climate-smart technologies, inclusive value chains, and private-sector leadership.

This new investment:

• Promotes climate resilience through organic farming practices

• Encourages sustainable land use

• Builds processing capacity to reduce post-harvest losses

• Strengthens markets for Tanzanian agricultural exports

• Demonstrates the power of African private enterprises to lead development

By supporting MeTL, the Bank reinforces its commitment to scaling locally driven solutions capable of transforming Africa’s agricultural potential.

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A Major Step Toward Tanzania’s Agribusiness Transformation

The AfDB loan is part of a larger mobilisation effort that will modernise Tanzania’s high-value agricultural sectors, empower rural communities, and increase export competitiveness. With tea, sisal, and macadamia gaining importance in global markets, the project will help cement Tanzania’s position as a leading producer of these crops.

“This investment will be a game changer for Tanzania’s agricultural transformation,” Orwothwun said. “It combines industrial efficiency with inclusive growth, empowering rural women and youth while building climate resilience.”

The programme marks a significant milestone in the AfDB’s partnership with Tanzania—one that promises long-lasting benefits for the economy, the environment, and millions of people living in rural communities.