By Business Insider Reporter
The African Development Bank (AfDB) has approved a major loan of US$24.6 million to Mohammed Enterprises Tanzania Limited (MeTL) to revive old plantations, expand crop production and modernise agricultural industries across the country.
The TSh 61 billion financing is part of a wider US$74.7 million (about TSh 185 billion) programme designed to strengthen Tanzania’s tea, sisal and macadamia sectors.
The investment will breathe new life into ageing tea estates, convert more than a thousand hectares into organic plantations and modernise processing factories so they can handle far larger volumes.
It will also support the establishment of extensive new sisal farms and a macadamia plantation, while improving rural roads, storage facilities and access to modern machinery. All these changes will help farmers connect to stronger markets within the region and beyond.
For ordinary families, the impact will be felt directly. The project is expected to create meaningful employment, particularly for women and young people living in rural areas.
More stable work means more stable incomes, helping households meet everyday needs such as food, school fees and healthcare. Small-scale farmers will also benefit from better access to buyers, fairer prices for their crops and more reliable supply contracts.
With improved processing and stronger market links, many rural producers – especially women farmers – stand to see their earnings rise.
The national economy gains as well. Increased agricultural output is set to bring in more export earnings and higher tax revenues for the government. A stronger, more modern farm sector also means improved food security, better rural infrastructure and reduced poverty in communities that depend heavily on agriculture.
The project will rehabilitate ageing tea estates, convert more than 1,000 hectares into organic plantations and upgrade processing factories to double production capacity.
It will also establish at least 15,000 hectares of sisal plantations and a new 200-hectare macadamia plantation, while strengthening rural infrastructure, providing modern machinery, and enhancing value chains that connect smallholder farmers to regional and global markets.
This investment is expected to create more than 1,400 new jobs, mostly for women and youth, generate over US$10 million annually in new export earnings, and contribute approximately US$36 million in fiscal revenues for Tanzania.
By supporting smallholder producers, especially women farmers, the project will help raise household incomes and reduce rural poverty.
“This partnership is about transforming potential into prosperity,” said Charles Orwothwun, AfDB Chief Investment Officer and project team leader. “By combining innovation, sustainability, and inclusion, we are helping Tanzania build a more resilient agricultural future that works for its people and the planet.”
For MeTL, the financing is a chance to modernise its agro-industrial operations and further strengthen its role as one of Tanzania’s most influential homegrown companies.
Founded in the 1970s, MeTL is a diversified agro-industrial and general trading company which operates multiple bulk storage and processing facilities across Tanzania.
The project demonstrates a clear vote of confidence in Tanzania’s private sector from the African Development Bank and other international investors such as ILX B.V.
Ultimately, the investment signals an important shift in how Tanzania’s agricultural future is being built – through modern technology, climate-resilient farming and a private sector that is actively contributing to inclusive national growth. “This investment will be a game changer for Tanzania’s agricultural transformation by combining industrial efficiency with inclusive growth, empowering rural women and youth while building climate resilience,” Mr Orwothwun said.
