U.S. Invests $8.3 Million to Strengthen Food Security and Boost Trade through Tanzania’s Private Sector

U.S. Invests $8.3 Million to Strengthen Food Security and Boost Trade through Tanzania’s Private Sector

Dar es Salaam  – The United States Government, through the U.S. Agency for International Development (USAID), today announced an investment of $8.3 million to several Tanzania firms to boost trade, improve food security, and strengthen Tanzania’s competitiveness in the export arena through the African Growth and Opportunity Act (AGOA).  

In a showcase event attended by the Minister of Industry and Trade Dr. Selemani Saidi Jafo and USAID/Tanzania Mission Director Craig Hart, USAID announced that nine local firms will receive grants under the USAID Africa Trade and Investment Project: BioBuu, Biotan Limited, Central Park Bees, Minjingu Mines and Fertilizer Limited, Mount Meru Millers, Red Earth Limited, Sabayi Investments Limited, Tanzania Tooku Garments Co. Ltd, and Thirdman (Upendo Honey). These partnerships demonstrate what is possible when the private and public sectors work together.

“Today, we celebrate USAID partnerships with nine companies across key sectors including honey, cashew, and garments. These partnerships are expected to generate 2,000 jobs, drive $42.5 million in new exports, and boost Tanzania’s role as a regional economic hub,” said USAID/Tanzania Mission Director Craig Hart. “We're paving the way for Tanzania to become a regional breadbasket, energy exporter, and youth-driven  innovation hub, and through AGOA we are helping Tanzanian firms find markets in America.” AGOA is a key part of U.S. economic policy with Africa, offering eligible sub-Saharan countries duty-free access to the U.S. market for over 1,800 products.

To highlight a few of the expected results stemming from these new partnerships: Tanzania is well-positioned to expand its honey production as it is currently Africa's second-largest honey producer and the top supplier to the EU. Third Man Limited (Upendo Honey)--in partnership with USAID–projects to increase honey exports by 767 percent, and Central Park Bees is expected to increase production by 33 percent. 

To address challenges with access to fertilizer, USAID partner Minjingu Mines is expected to increase fertilizer production by 50 percent while adding $20 million in additional domestic sales over two years. And Biobuu expects to increase production of organic fertilizer by 300 percent as a consequence of USAID’s grant. 

Tooku Garments and Red Earth–exporting to American markets under AGOA–  are also benefiting from USAID grants. Tooku Garments projects to increase exports by $7.7 million  while Red Earth increases production of goods destined for American markets by 20 percent.

For more information about this press release, please contact the USAID/Tanzania Development Outreach and Communications Team at Dardocs@usaid.gov.