Under the agreement, both institutions will work closely to improve co financing mechanisms for sovereign agricultural projects included in IFAD’s portfolio.(Image credit: IFAD)

The Abu Dhabi Fund for Development and the International Fund for Agricultural Development have entered into a new partnership aimed at strengthening sustainable agriculture and improving the long term impact of rural development projects across the world.

The agreement reflects the United Arab Emirates’ continued commitment to global cooperation in food security, climate resilience and inclusive economic growth.

The partnership was signed during the World Government Summit by Mohamed Saif Al Suwaidi, Director General of ADFD, and Alvaro Lario, President of IFAD, in the presence of senior representatives from both organisations. IFAD is the only international financial institution fully dedicated to transforming rural economies and supporting small scale farmers.

Under the agreement, both institutions will work closely to improve co financing mechanisms for sovereign agricultural projects included in IFAD’s portfolio. The framework sets clear foundations for collaboration in project selection, financing and evaluation, while respecting the regulatory and operational policies of each party. By aligning procedures and coordinating approval processes, the partnership aims to make better use of available resources and increase the overall development impact of funded projects.

Mohammed Saif Al Suwaidi said, “This agreement with the International Fund for Agricultural Development reflects our ambitious vision to build strong partnerships with leading international financial institutions, based on the integration of efforts and coordination of implementation and evaluation processes. It supports the development of sustainable agricultural projects that focus on strengthening agricultural value chains, improving quality of life in rural areas, and enhancing communities’ ability to adapt to various climatic and economic changes.”

Alvaro Lario said, “Our strategic partnership with ADFD creates an advanced model for coordinated investment, maximizing our impact on rural economies. Through this institutional framework, we will mobilize resources and expertise to drive economic growth, enhance food security, and build climate resilience in rural communities.”

The collaboration marks an important step forward in the relationship between ADFD and IFAD. It opens the door to deeper cooperation, knowledge sharing and capacity building, while reinforcing a shared commitment to supporting rural communities. Through joint action and coordinated investment, the partnership aims to help communities strengthen their resilience, expand economic opportunities and build a more sustainable future.

Kakuzi launches premium black tea for the Kenyan market.(Image credit: Capital business)

Kakuzi has taken a new step in its diversification journey with the launch of Kakuzi Pure Black Tea, marking the company’s first move into selling branded tea directly to the local market.

The loose leaf tea is available in 250 gramme and 500 gramme packs and is aimed at Kenyan consumers seeking high quality tea traditionally reserved for export markets.

The launch reflects a broader shift in strategy as the agribusiness looks to add value closer to home and reduce its dependence on exports. Managing Director Chris Flowers said the move aligns with Kakuzi’s long term growth plans and its focus on building more resilient revenue streams.

“This is the first time in our history that we are offering a quality tea brand to the local market,” Flowers said. “Kenyans will enjoy export-grade tea leaves packaged in convenient sizes.”

By targeting domestic consumers, Kakuzi hopes to cushion itself against volatility in international markets. Global tea prices have remained subdued in recent years, making export focused models increasingly exposed to external shocks. The company believes that strengthening its presence at home will help balance these risks while responding to growing demand for premium, locally produced food products.

The tea launch builds on Kakuzi’s expanding portfolio of value added goods sold within Kenya. These include ready to eat macadamia nuts, cold pressed macadamia oil and fresh blueberries, all of which have helped the company move beyond raw commodity exports. The products are currently available at selected retail outlets, the Kakuzi Farmers’ Market along the Nairobi Nyeri Highway and through the company’s online store.

Alongside product diversification, Kakuzi continues to invest heavily in processing capacity. The company operates a major macadamia processing facility in Makuyu, Murang’a County, with the ability to produce up to 2,000 tonnes of saleable kernel each year, making it one of the largest operations of its kind in the country. Its macadamia oil plant can process up to 1,000 litres per day using cold press technology, supporting both domestic sales and export demand.

Looking ahead, Kakuzi has set out ambitious growth targets across its agricultural operations. Over the next decade, the firm plans to almost double avocado production and exports, increasing volumes from 3 million to 5 million cartons. It is also aiming to raise macadamia kernel output from 900 tonnes to 1,500 tonnes, reinforcing its position as a leading player in Kenya’s high value crop sector.

Tanzania boosts rice processing with new mill.

Tanzania has taken a significant step towards strengthening its agricultural sector with the launch of a new large scale rice mill in Kahama district.

The facility, developed by local company KOM Food Products Ltd, represents an investment of more than 100 billion Tanzanian shillings, equivalent to around US$39.56million. Construction of the plant was completed on a 54 hectare site and operations officially began in late January, according to the Tanzania Investment and Export Zones Authority.

The project is being described as one of the most important agro industrial developments in the country. While details of its processing capacity have not been made public, the mill is expected to play a central role in supporting local rice farmers. Most of the paddy processed at the facility will be sourced from producers in the Shinyanga region, helping to create a more reliable market for smallholder farmers.

“Beyond industrial output, the project is expected to strengthen agricultural value chains in Shinyanga Region by providing a stable market for paddy rice produced by smallholder farmers,” the press statement said. “The investment supports Tanzania’s broader strategy to expand domestic agro processing, enhance food security, and retain more value within the country by shifting more of the rice value chain — from farming to milling and packaging — into local production.”

Tanzania has been self sufficient in rice for several years, producing more than it consumes and supplying neighbouring countries with surplus grain. Data from the Ministry of Agriculture show that rice production averaged 2.43 million tonnes per year between the 2019 2020 and 2023 2024 seasons, while domestic demand stood at about 1.2 million tonnes annually. The new mill is expected to increase local processing capacity and make it easier to channel surplus rice into export markets.

According to TISEZA, KOM Food Products plans to expand production gradually in response to growing demand. “KOM Food Products said it plans to scale up production in phases to meet rising domestic demand and explore regional market opportunities in East and Southern Africa,” the authority highlighted.

Rice exports from Tanzania have fluctuated in recent years. Between 2020 and 2024, the country exported an average of nearly 387,066 tonnes of milled rice each year, with exports peaking at 622,422 tonnes in 2022. Export revenues during this period averaged close to $191 million annually, with key markets including Uganda, Kenya, Rwanda and the Democratic Republic of Congo.

With East African Community countries importing large volumes of cereals each year, the Kahama rice mill could help Tanzania strengthen its position as a regional supplier while supporting farmers, creating jobs and adding more value within the country.

Ethiopia puts coffee at heart of culture climate and growth. (Image credit: Ethiopian News Agency)

Ethiopia has renewed its call for greater recognition of coffee as more than a global export, framing it as a cultural treasure, a social bond and a vital economic pillar for both the country and the wider African continent.

The message was delivered at a high level policy forum held on Tuesday during the 3rd African Coffee Week in Addis Ababa, where leaders and development partners gathered to discuss the future of Africa’s coffee industry.

Meles Mekonnen, State Minister of Agriculture said, “Coffee is far more than a tradable commodity. It is and will remain one of Africa’s most powerful symbols and strategic assets,” Meles said.

He warned that climate change is placing increasing pressure on the sector, with erratic rainfall, rising temperatures and growing pest threats already affecting production. According to Meles, smallholder farmers are bearing the brunt of these changes, making climate resilience and sustainable transformation urgent priorities.

As Africa’s largest coffee producer, Ethiopia has positioned coffee at the core of its national development strategy. Meles said the government is expanding climate smart farming practices, strengthening quality control systems and improving market transparency, while ensuring women and young people benefit from sector reforms.

He also urged African countries to rethink their role in the global coffee value chain by moving beyond raw bean exports and investing in value addition, branding and finished products. He pointed to the African Continental Free Trade Area as a major opportunity to build regional value chains and create decent jobs.

“Investments in climate smart production systems and sustainable land management are not optional; they are economically prudent,” he said. “Together, we can cultivate a coffee industry that is economically vibrant and deeply rooted in Africa’s rich heritage.”

AU Commission Chief of Staff Mohamed El Amine Souef echoed the call for stronger cooperation, noting that new harmonised African coffee standards aim to boost competitiveness.
“Coffee brings people from diverse cultures together for mutual benefit,” Souef said.

UNIDO Representative Stephen Kargbo highlighted coffee’s role in Ethiopia’s export earnings while warning of climate risks and price volatility. “No single institution or government can address these issues alone,” he said.

Italian Ambassador Sem Fabrizi praised coffee’s cultural roots and confirmed Italy’s continued support through development cooperation and increased financing via the Italian Climate Fund.