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

Dar es Salaam – The U.S. Government, through the U.S. Agency for International Development (USAID), has announced a $8.3 million investment to support several Tanzanian firms in enhancing trade, improving food security, and bolstering Tanzania's export competitiveness under the African Growth and Opportunity Act (AGOA).

In an event attended by the Minister of Industry and Trade Dr. Selemani Saidi Jafo and USAID/Tanzania Mission Director Craig Hart, USAID revealed that nine local companies will receive grants under the USAID Africa Trade and Investment Project. The recipients—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)—exemplify the potential of public-private partnerships.

“Today, we celebrate USAID’s partnerships with nine firms across critical sectors such as honey, cashews, and garments. These partnerships are expected to create 2,000 jobs, generate $42.5 million in new exports, and enhance Tanzania's standing as a regional economic leader,” said USAID/Tanzania Mission Director Craig Hart. “We’re paving the way for Tanzania to become a regional breadbasket, energy exporter, and innovation hub, empowering Tanzanian firms to reach U.S. markets through AGOA.” AGOA is a cornerstone of U.S. economic policy in Africa, allowing eligible sub-Saharan countries duty-free access to over 1,800 products in the U.S. market.

Notable outcomes anticipated from these partnerships include Tanzania's continued growth as Africa’s second-largest honey producer and leading supplier to the EU. With USAID’s support, Third Man Limited (Upendo Honey) aims to expand honey exports by 767 percent, while Central Park Bees anticipates a 33 percent production increase.

To address fertilizer access challenges, USAID partner Minjingu Mines plans to boost fertilizer production by 50 percent, adding $20 million in domestic sales over two years. BioBuu expects to ramp up organic fertilizer production by 300 percent through USAID’s grant.

Tooku Garments and Red Earth, leveraging AGOA for access to American markets, will also benefit. Tooku Garments projects an export increase of $7.7 million, while Red Earth plans a 20 percent growth in goods destined for the U.S.

(Source: USAID)