It is close to a week now since the shocking drama of nutty business in Tanzania unfolded, with the President of State John Magufuli admonishing the confiscation of the foreign exchange crop to save the industry.
The president continues to make headlines as he attempts to balance the economic state of his country by ensuring law and order.
The move has not stopped foreign investors from eyeing potential business opportunities in the economy. The measure was to expose the business gap in the industry for potential investors. A Belgian firm is readying a crucial investment in the agriculture sector that will benefit the cashew farmers and the government as well.
Plans are already underway for the establishment of the first cashew nut shell liquid (CNSL) processing plant, the first in Tanzania. The cash crop is the country’s most esteemed export commodity with high economic value. Currently, most of the production of cashew nuts in Tanzania is exported without being shelled, as recorded by TanzaniaInvest.
It hence limits the farmers’ income who receive only 75 percent of the crop value when they sell the nut but will reap 100 percent once they sell the shell to the firm. The investor is finalizing the necessary procedures and logistics before the set-up of the processing plant. The acting director of the department of Europe and America of the Foreign Affairs and East African Cooperation, Mr. Jestas Nyamanga said the investment would create employment opportunities and better the standards of living for the farmers from better earnings.
Citing from everestblowers.com, Cashew Nut Shell Liquid (CNSL) is considered as cost-effective and better modern materials for unsaturated phenols. Phenols are used in household products such as disinfectants and mouthwash. It is also used as intermediates for industrial synthesis.
Tanzania is Africa’s largest cashew grower after Nigeria and Ivory Coast, and the eighth biggest producer in the world.