In The Spotlight
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.
Africa has taken a major step towards closing its long standing agricultural mechanization gap as leaders, experts and development partners gathered in Dar es Salaam for the Africa Conference on Sustainable Agricultural Mechanization
The event opened with the launch of Tanzania’s National Agricultural Mechanization Strategy 2026 to 2036, signalling a renewed continent wide push to modernise farming systems.
The strategy was unveiled by the Prime Minister of the United Republic of Tanzania, Mwigulu L. Nchemba, alongside FAO Deputy Director General Beth Bechdol. The conference is organised by the Food and Agriculture Organization of the United Nations and hosted by the Tanzanian government, bringing together governments, private sector players, researchers, youth groups and farmers to share ideas and scale up solutions that work for Africa.
Opening the conference, Prime Minister Nchemba stressed that mechanization is no longer optional for the continent. “Through action, we can change Africa’s agriculture to be a mechanized sector that is sustainable, for this generation and future generations.” He noted that the new ten year plan aligns with the FAO African Union Framework for Sustainable Agricultural Mechanization in Africa and places women and young people at the centre of transformation.
FAO Deputy Director General Beth Bechdol said past approaches had failed because they focused on importing machinery without building the systems needed to support it. “Mechanization today cannot look like mechanization of the past. Shipping in large machines without financing, training, repair services, or local adaptation has not delivered lasting results. Africa does not need more equipment sitting idle. It needs systems that work,” she said. She added, “At FAO we see sustainable mechanization as a catalyst for transformation not as machines replacing people, but tools empowering people, reducing back breaking labour and creating space for women to farm more productively.”
African Union Commissioner Moses Vilakati highlighted the human dimension of the agenda, saying, “Our mechanization agenda is also a dignity agenda.”
Africa still relies heavily on manual and animal labour despite holding around half of the world’s uncultivated arable land. Crop yields remain well below global averages, even though agriculture supports the majority of livelihoods. Sustainable mechanization is seen as key to boosting productivity, creating skilled jobs and supporting climate smart farming.
FAO Regional Representative Abebe Haile Gabriel said, “Choosing a new direction that embraces mechanization, digitalization, scientific innovation and inclusive policies can fundamentally transform Africa’s agrifood landscape.”
The conference will also spotlight youth employment, digital tools such as machinery hire platforms and drones, and innovative financing, as FAO reaffirms its commitment to support African countries in building a modern and resilient agricultural future.
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.
Global trade fair for horticulture, IPM ESSEN will be opening its doors to international partners for expansion accross new markets with wider networking and long-term business opportunities
Set to be held in Germany from 26 to 29 January 2027, IPM ESSEN will be introducing a new international delegation programme, which will see partcipation from both key and emerging markets. There will be an engaging presentation of products, concepts and innovations in the green sector. The delegation will comprise not only international trade associations and industry organisations but political institutions and economic development agencies as well.
“IPM ESSEN unites global supply and demand in one place. With the new delegation programme, we are systematically expanding this matchmaking function and creating additional opportunities to connect international IPM participants with one another. This is how personal encounters lead to new projects and long-term partnerships,” said Oliver P Kuhrt, CEO of Messe Essen.
Participants can take away valuable practical insights from exchanges with horticultural businesses, breeders, nurseries and garden centres in North Rhine-Westphalia.
IPM ESSEN will have a dedicated Innovation Centre Horticulture Technology promoting future-oriented fields such as climate adaptation, resource efficiency, peat reduction, automation and artificial intelligence.
The IPM Discovery Centre will display innovative POS concepts and ensure modern shopfitting ideas for retailers are staged to maximum effect. Exhibitors from all areas of horticulture can tap into easy brand positioning by integrating their products and novelties into high-profile sales concepts. The presentation is practical, trend-oriented and emotive, directly within the application context.
In a move to strengthen its Detect & Protect mycotoxin management strategy, Intraco has added two new offerings to the Intra Toxinbind Xpro range -- Intra Toxinbind Xpro Plus and Intra Toxinbind Xpro Premium
The company has also collaborated with Prognosis for rapid mycotoxin detection. These developments equip Intraco to support faster identification of mycotoxin risks before it can adversely affect animal health and performance.
The company taps the growing demand for reliable detection and targeted mitigation tools as a result of increased mycotoxin pressure on livestock production. The Prognosis and Toxinbind offerings make up a complete package to address mycotoxin risks, with rapid screening solutions ensuring quick decision making when it comes to feed ingredients and raw materials assessment.
"Our customers tell us that mycotoxin challenges are becoming increasingly complex and less predictable, with a growing negative impact on animal performance, health, and profitability,' said Julie Feyaerts, global portfolio manager.
"Based on customer feedback, we see that the most important factors in assessing mycotoxin risk are the origin of raw materials, climatic conditions during cultivation and harvest, and the subsequent processing and storage conditions. Together with flock observations such as reduced growth performance, increased mortality, or gut health challenges, these factors help determine the most appropriate mycotoxin management strategy.
"To support our customers, we have strengthened our mycotoxin management approach in three ways. First, we help customers evaluate their mycotoxin risk based on raw material sourcing and flock observations. Second, we now offer rapid mycotoxin screening of raw materials through our partnership with Prognosis, providing a valuable quality check of suppliers and an additional decision-making tool. Third, we have expanded the Intra Toxinbind range with the introduction of Intra Toxinbind Xpro Plus and Intra Toxinbind Xpro Premium, completing our portfolio and allowing customers to select the most appropriate strategy for their specific mycotoxin risk and animal needs.
"By combining rapid detection, technical expertise, and a graded portfolio based on adsorption, bioprotection, and detoxification, we help customers apply the right level of protection locally, safeguarding animal health and performance while optimizing return on investment," Feyaerts said.
With this expanded offering, Intraco provides customers with practical tools, proven protection solutions and expert guidance, delivering a comprehensive Detect & Protect strategy tailored to local challenges and customer needs.
Oikocredit backs Tanzanian agritech firm East Africa Foods to reduce food loss and improve smallholder farmers’ incomes. (Image source: Oikocredit)
Social impact investor Oikocredit has invested in Tanzanian agritech company East Africa Foods (EAF) as part of a funding round worth approximately US$40mn to strengthen climate-resilient food supply chains across East Africa
The investment will support EAF’s expansion, reduce food loss and improve market access and incomes for up to 100,000 smallholder farmers over the coming years.
The funding will help expand EAF’s processing, storage and logistics infrastructure, alongside its digital platform. It will also enable the company to enter new markets and develop more efficient and sustainable connections between farmers and urban retailers.
Oikocredit participated in EAF’s US$26mn Series B equity round, led by the Private Infrastructure Development Group (PIDG) through its equity investment solution, InfraCo, alongside FMO, the Dutch Entrepreneurial Development Bank. Existing shareholders ARAF, Goodwell, Africa Eats and FINCA also reinvested.
The equity round forms part of a broader capital raise of approximately US$40mn, which includes investment from existing shareholders and debt funding from the Schmidt Family Foundation.
EKTA Partners acted as the exclusive financial advisor for the transaction.
Building more resilient food supply chains
In Kenya and Tanzania, up to 40% of food produced is lost before reaching consumers. Much of this loss occurs after harvest because of inadequate aggregation, grading, storage and reliable transport infrastructure. These gaps affect the prices smallholder farmers receive for their produce and the prices urban families pay for food.
East Africa Foods was established to address these challenges by connecting farmers directly with urban retailers through an integrated supply chain. The company currently sources produce from more than 28,000 registered smallholder farmers and provides aggregation, grading, storage, processing and distribution services to more than 10,000 urban retailers.
EAF has reduced food loss by a third across its own network. Its produce reaches consumers under the group’s brands, including Onja and Golden Banana.
With the new investment, EAF plans to strengthen its presence across East Africa while exploring opportunities to enter additional markets. Its long-term ambition is to develop African-owned and African-operated food supply chain infrastructure that can withstand the growing challenges posed by climate change.
Investing in sustainable growth and lasting impact
“At Oikocredit, we believe that building climate-resilient food systems requires investment in the infrastructure that connects farmers to markets efficiently and sustainably. EAF’s integrated aggregation, storage, processing, and distribution platform helps reduce food loss across the value chain, strengthen food security for growing urban populations, and improve the resilience and incomes of smallholder farmers, commented Samuel Kibiri, senior equity officer at Oikocredit.
"By improving supply chain efficiency and creating value across the food system, EAF is well positioned to deliver lasting impact, sustainable growth, and attractive financial returns as it scales across East Africa. We are proud to support EAF on this journey and to invest alongside like-minded partners.”
Elia Timotheo, founder and CEO of East Africa Foods, said, “A third of what our farmers grow never reaches anyone’s table. That is not a farming problem: it is an infrastructure problem, and it is solvable. For the past three years we have been building the layer this market is missing: the sourcing network, the fleet, the storage, and the technology that sit between a smallholder farm and an urban shelf. This investment enables us to further improve and scale this physical and digital infrastructure. We would like to thank our investors for their support in scaling this vital infrastructure.”
Claire Jarratt, PIDG head of investment management for InfraCo, stated, “EAF’s offering aligns well with PIDG’s mandate to deliver inclusive, climate-resilient growth across the countries in which we operate. Strengthening EAF’s presence in Tanzania, and expanding its efficient, data-driven business into Kenya, will enable the company to mobilise future finance into this vital sector, underpinning improved food security across the region.”
Alongside expanding its physical infrastructure, EAF will extend training for smallholder farmers in climate-smart production methods and further develop the digital systems connecting farmers, branches and retailers. Developed in Tanzania, these systems are designed for deployment in new markets as the company expands.
Up to 100,000 smallholder farmers, 45% of them women, are expected to benefit from higher and more predictable incomes and improved climate resilience. Urban retailers are also expected to benefit from improved quality control, product traceability and more reliable access to fresh produce through EAF’s formalised supply chains.
Peter Byrde, director private equity at FMO, said, “Through our partnership with East Africa Foods, we have seen how investments in logistics, storage, processing, and digital solutions can reduce food loss, improve market access, and increase income opportunities for smallholder farmers. That’s why FMO is pleased to support EAF’s next phase of growth as it expands critical supply chain infrastructure across the region, helping to build a more efficient, resilient, and inclusive food system. By demonstrating a scalable and commercially viable model for agri-logistics, we believe EAF can help catalyse greater private sector investment into the sector and pave the way for increased commercial funding in the years ahead.”
FederUnacoma offers tractors to levelling machines and weed-control robots. (Image source: FederUnacoma)
Highly specialised FederUnacoma machineries for operations in rice fields were on display at the recently concluded Riso – International Rice Festival in Vercelli, organised by the Province and City of Vercelli alongside the National Rice Authority (Ente Nazionale Risi) and Ministry of Agricultural, Food and Forestry Policies (MASAF)
From tractors to levelling machines and weed-control robots, there are technologies dedicated to each stage of production to ensure maximum efficiency.
With more than 230,000 hectares under cultivation, and of high-quality varieties, rice production drives Italy's agriculture scene. To secure rice generation stability against factors such as drought, low market prices and foreign competition, technology is the most scientific way to manage uncertainties, according to FederUnacoma. The 17 innovative machines on display included tractors powerful and versatile enough to work across ploughing, sowing, irrigation and harvesting.
There were multi-purpose blades for constructing solid embankments designed to consistently maintain water level without leaks or seepage. Levelling blades ensuring uniform water distribution were displayed as well. In addition to these – also on display at RISO’ – were precision seeders, electric telescopic loaders for CO₂-free operation in the field, combine harvesters fitted with specialised harvesting attachments, and reaper-binders for harvesting in dry-farmed rice fields.
An agricultural robot was present demonstrating cultivation operations such as weeding with precision. “The technologies produced by Italian manufacturers are capable of managing rice paddies with extreme precision, complying with the phytosanitary parameters imposed by the European Union, conserving water resources and significantly reducing labour costs,” said Mariateresa Maschio, president of FederUnacoma, “and thus enable production costs to be kept in check in a sector...such as the rice industry, which currently offers low profitability”.
“Our Federation’s presence at the RISO event strengthens our collaboration with the Ministry of Agriculture, Food Sovereignty and Forestry,” said Simona Rapastella, director-general of FederUnacoma, “and forms part of a comprehensive programme which, in recent years, has included exhibitions and machine demonstrations at the main events dedicated to agriculture. This is precisely to highlight how mechanisation is a fundamental tool for the competitiveness of Italian production, and how machinery can be a valuable ally for agricultural businesses.”
