Algerian firms boost Tanzania’s cashew industry

Algerian investors are set to transform Tanzania’s cashew sector by building processing factories that will turn raw nuts into higher-value products, according to dailynews.co.tz. The move marks a strategic shift for Algerian agritech firms expanding beyond North Africa and positions Tanzania as a key supplier of processed cashew exports to global markets.

The factories, planned in Tanzania’s coastal regions where cashew production is concentrated, will focus on shelling, roasting, and packaging cashew kernels. Tanzania is Africa’s third-largest cashew producer, with an annual output of around 300,000 metric tons, but over 90% of its harvest is currently exported raw. Processing locally could double the value of each ton, creating jobs and retaining more revenue within the country.

For Algerian entrepreneurs, this venture offers a rare opportunity to diversify into sub-Saharan Africa’s agricultural sector. Algerian firms have traditionally focused on domestic or Maghreb markets, but rising competition in local agritech has pushed some to seek growth abroad. The cashew project aligns with Algeria’s broader push to develop its own food processing industry—evidenced by recent investments in date and olive oil factories—while leveraging Tanzania’s favorable climate and lower production costs.

Diaspora and investment flows

Economic ripple effects

The project also reflects a growing trend of South-South cooperation in agritech. Algeria’s state-owned agricultural bank, BADR, has signaled willingness to provide financing for similar ventures in East Africa, citing Tanzania’s stable political environment and existing trade agreements with Algeria. In 2025, bilateral trade between the two countries reached $120 million, with Algerian exports of machinery and fertilizers complementing Tanzanian agricultural products.

Challenges and opportunities

For Tanzanian entrepreneurs, the arrival of Algerian capital presents an opportunity to upgrade local processing skills. Training programs, likely funded by Algerian firms, could transfer expertise in food safety standards and export certification—critical for accessing markets in the EU and Middle East, where demand for processed cashews is growing at 8% annually.

Algerian agritech’s global pivot

The move also aligns with Algeria’s efforts to reduce food import dependence. Despite its vast agricultural potential, Algeria imports over $10 billion worth of food annually, including nuts and processed goods. By investing in foreign processing hubs, Algerian firms can secure long-term supply contracts while developing technologies that could later be adapted for domestic use.

Key takeaway for entrepreneurs
Algerian agritech firms are expanding into East Africa’s cashew sector, offering diaspora investors and local entrepreneurs a chance to participate in high-value processing. The project could stabilize incomes for Tanzanian farmers while providing Algerian businesses with a reliable source of processed nuts for export. Infrastructure challenges remain, but the venture highlights the potential for South-South collaboration in Africa’s agricultural value chains.