In a clear sign of Algerian business expansion into high-potential African markets, Algerian investor groups confirmed this week plans to build multiple cashew processing factories in Tanzania. The move follows months of feasibility studies and partnership talks with Tanzanian authorities, positioning Algeria at the heart of East Africa’s cashew value chain transformation.
The initiative is led by a consortium including Algiers-based agribusiness firm Macitec Group and state-owned investment arm SIFIA (Société d’Investissement et de Participation pour l’Industrie Alimentaire). According to a recent statement by Macitec CEO Hamza Boukhalfa, the first phase involves constructing three processing plants in Mbeya, Morogoro and Tanga regions, with combined capacity to handle 120,000 tons of raw cashew nuts annually. SIFIA confirmed investment commitments exceeding $85 million, sourced from Algerian private equity and banking partners including BNA (Banque Nationale d’Algérie) and BDL (Banque de Développement Local).
Tanzania is Africa’s second-largest cashew producer after Côte d’Ivoire, with annual output around 350,000 tons. But until now, over 90% of its crop was exported raw—often to Vietnam or India—where it is peeled and processed before re-export to global markets. That means most value addition and jobs occur outside Africa. Algerian investors aim to change that by building modern hulling, peeling and roasting facilities in Tanzania, capturing downstream revenue and creating thousands of local jobs.
“Processing just 30% of Tanzania’s cashew output would add $400 million annually to the country’s export earnings,” said Boukhalfa in a press briefing in Dar es Salaam last week. He added that Algeria’s entry comes after the Tanzanian government raised export taxes on raw nuts to 10% in 2025 and introduced incentives for local processing, including tax holidays and land leases at subsidized rates.
For Algerian entrepreneurs and the diaspora, the move offers a rare blueprint for scaling across borders using existing Algerian capital, technology and risk appetite. It also raises critical questions about logistics, local partnerships and regulatory navigation—lessons that could apply to future projects in Senegal, Ethiopia or Nigeria.
The Tanzanian government has welcomed the initiative. “This partnership aligns with our Five-Year Industrialization Plan,” said Minister of Industry and Trade Kitila Mkumbo. “We see Algerian investors as strategic partners in agro-industrial upgrading.” Tanzanian officials confirmed that infrastructure support—including upgraded roads from Mbeya to Dar es Salaam and port access at Tanga—would be prioritized to facilitate exports.
For Algerian founders eyeing African agribusiness, the cashew project highlights three immediate opportunities:
Firstly, access to raw material. With Tanzanian production rising and export taxes rising, securing supply through long-term off-take agreements with local cooperatives becomes crucial. Macitec already signed a preliminary supply deal with the Tanzania Cashew Board covering 50,000 tons annually over five years.
Secondly, technology transfer. Algerian investors are importing hulling machines and automated peeling lines from India and Turkey, but are also piloting solar-powered drying units to cut energy costs—a model that could be replicated in Algeria’s date or olive sectors.
Thirdly, export logistics. The factories will rely on Tanzanian ports, particularly Tanga and Dar es Salaam, which are expanding container handling capacity. Algerian logistics firms like Dounia Logistics have already opened liaison offices in Dar es Salaam to coordinate inbound machinery and outbound containerized shipments to Europe and the Middle East.
The consortium plans to start construction by mid-2025, with the first facility operational by late 2026. Full capacity is expected by 2028. If successful, the model could be scaled to Mozambique, where cashew production tops 200,000 tons but processing remains embryonic.
For the Algerian diaspora, this project offers a new corridor for professional engagement—not just as investors, but as technical advisors, quality control experts or export coordinators. Several Algerian engineers with cashew experience in India and Côte d’Ivoire have already been recruited by Macitec for the Tanzanian venture.
“This is not just about nuts—it’s about building a model supply chain from farm to fork, designed by Algerians and executed in Africa,” said SIFIA managing director Amina Benali in an interview with APS. “We want to show that Algerian capital can create value locally while strengthening South-South trade.”
The project arrives as Algeria’s non-oil exports hit a five-year high of $4.1 billion in 2025, driven by food products, pharmaceuticals and construction materials. Cashew processing could become a flagship sector—if the factories deliver on time, adhere to quality standards and meet local labor expectations.
Key takeaway for entrepreneurs:
Algerian investors are expanding into Tanzanian cashew processing with a $85 million commitment, aiming to capture value from raw nut exports. The model combines supply agreements, technology transfer and logistics integration—lessons applicable to other Algerian agro-export ventures in Africa. Diaspora professionals with sector experience can engage through technical roles in quality control, logistics and training.
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