"Tanzania’s Drive to Boost Coffee Industry and Value Chain"

Tanzania's Efforts to Boost Coffee Value and Production

February 25, 2025

Coffee is one of the world’s most beloved beverages, and it holds a significant place in global trade, ranking fourth after oil, gold, and natural gas.

The coffee sector in Tanzania plays a pivotal role in employment, providing both direct and indirect jobs ranging from farmers to factory workers, and extending to international trade.

The country's coffee exports have surged in recent years, climbing from $140 million to over $230 million, with production also growing from 34 million tons to 85 million tons in 2024.

Agriculture Minister Hussein Bashe highlights that coffee is among the key crops with strategies aimed at increasing production and developing value-added industries to curb raw coffee exports.

“Our 10-year goal is to ensure that 50% of coffee produced in Africa is processed locally, reducing the export of raw coffee,” Bashe states.

The Minister emphasizes that improving the coffee industry by using existing infrastructure is a long-term agenda for the government.

“Despite the increase in production, from 34 million tons to 85 million tons, challenges remain with the sale of raw coffee due to a lack of processing plants, which has led to lower revenues,” Bashe explains.

He further notes that while the global coffee trade is valued at $500 billion, Africa produces 50% of the coffee, but only earns $2.5 billion from it.

“Although we are major coffee producers, we export coffee worth $2.5 billion while importing more than $6 billion in processed coffee,” he adds.

Among the government’s strategies to enhance production is the free distribution of 20 million coffee seedlings to farmers.

He adds that the seedlings initiative will contribute to increased production. Additionally, employment opportunities are created at various stages, including roasting, grinding, packaging, and selling, but most of the value chain still ends with raw coffee being exported.

Tanzania produces both Arabica and Robusta coffee. Arabica is grown in regions such as Kilimanjaro, Arusha, Tanga, Iringa, Mbeya, Kigoma, Manyara, Mwanza, Katavi, Mara, Njombe, Songwe, Rukwa, Geita, and Ruvuma. Robusta coffee is cultivated mainly in Kagera and Morogoro.

As part of its commitment to increasing coffee production and value, Tanzania is set to host the 3rd African Coffee Producing Countries Summit (G25) in Dar es Salaam.

Bashe elaborates that the summit, scheduled for February 21, 2025, will be officially opened by President Samia Suluhu Hassan. It is expected to be attended by African coffee-producing country heads of state, agriculture ministers, private sector representatives, and coffee industry stakeholders, including farmers and value chain actors.

The theme of the summit is "Opening Job Opportunities for Youth through the Development of Africa’s Coffee Sector."

Bashe notes that the summit will focus on how African nations can collaborate with the African Union (AU) and its development partners, including African Development Banks and other financial institutions, to create programs that promote entrepreneurship and youth employment in the coffee industry.

Regarding Tanzania's initiatives, Bashe highlights that the Ministry of Agriculture has launched the "Jenga Kesho Iliyo Bora" (Build a Better Tomorrow) entrepreneurship program for youth. One key component of the program is establishing "mobile coffee shops" to increase the local consumption of coffee.

These mobile coffee shops will allow young entrepreneurs to sell coffee in various locations, including on the streets, at public events, universities, and hospitals.

Additionally, the Ministry is planning to establish Coffee Excellence Centers in collaboration with higher education institutions to educate youth on the entire coffee value chain—from production to consumption.

The upcoming summit is a result of a resolution passed during the 61st IACO Annual Meeting in Kigali, Rwanda, in November 2021, which aimed to create a high-level conference for the 25 coffee-producing countries in Africa to address the challenges that have hindered the sector's growth.

Following this resolution, the first summit was held in Kenya in May 2022, resulting in the "Nairobi Declaration," which called for coffee to be classified as a strategic product in the African Union's Agenda 2063.

The second summit, held in Kampala, Uganda in August 2023, led to the "Kampala Declaration," urging the 25 coffee-producing nations to support the inclusion of coffee as a key strategic commodity in AU’s Agenda 2063.

During the 37th Ordinary Session of the AU Assembly in February 2024 in Addis Ababa, Ethiopia, African leaders unanimously agreed to designate coffee as a strategic commodity and make IACO a specialized AU organization.

Additionally, the African Continental Free Trade Area (AfCFTA), established in 2018, aims to remove trade barriers between African countries. The full implementation of this agreement will further strengthen intra-Africa coffee trade.

The third summit will focus on key areas within the coffee value chain to explore opportunities for expanding business and employment prospects, particularly for the youth.