What You Need to Know
The Tanzania Investment and Special Economic Zones Authority (TISEZA) is promoting a new investment strategy for cooperative farms in Hai District. The initiative aims to diversify income sources and enhance productivity by introducing alternative investments beyond coffee. TISEZA encourages cooperative members to explore various projects, including coffee processing and beekeeping, to maximize ar
Africa-Press – Tanzania. THE TANZANIA Investment and Special Economic Zones Authority (TISEZA) has stepped up efforts to transform cooperative farms in Hai District by promoting diversified high-value investments aimed at boosting productivity and incomes.
During a two-day visit to the district, TISEZA Director General, Gilead Teri engaged cooperative members on how to better utilize their land through modern and commercially viable projects.
The visit followed an invitation from Hai Member of Parliament Saashisha Mafuwe, with a focus on unlocking the economic potential of cooperative-owned farms.
The discussions placed strong emphasis on reducing overreliance on coffee by introducing alternative investment opportunities.
“Our discussion include the establishment of coffee processing industries, value addition projects, and expansion into other high-return ventures that can serve both domestic and export markets,” said Teri.
He said encouraged cooperative members to take advantage of investment incentives offered by the authority, including tax benefits, while partnering with stakeholders to develop bankable projects.
He also highlighted the importance of aligning investments with market demand to ensure sustainability and profitability.
Currently, many cooperative farms in Hai are operated through contracts with foreign investors, while others are managed by members or allocated for social services.
The main crops grown include coffee, flowers, macadamia, bananas, and maize, reflecting a mix of traditional and emerging agricultural activities.
To maximise land use, TISEZA advised members to invest in non-coffee areas through projects such as beekeeping, hotels, retail businesses, warehousing, logistics, coffee processing and sunflower oil production.
These investments are expected to create jobs, strengthen local value chains, and increase returns for farmers.
However, several challenges continue to affect productivity. These include dependence on a single crop, water shortages, limited access to capital and fertilisers, high input costs, lack of direct market access, and fluctuating global coffee prices.
TISEZA has committed to working closely with local authorities and other stakeholders to address these challenges.
The focus will be on improving investment readiness, strengthening market linkages, and ensuring cooperative members benefit more from their resources.
The initiative signals a shift towards a more diversified and resilient agricultural investment model in Hai, with the potential to drive broader economic growth at both local and national levels.
Tanzania’s agricultural sector has historically relied heavily on cash crops like coffee, which has made farmers vulnerable to market fluctuations. In recent years, the government has recognized the need for diversification to improve economic resilience. TISEZA’s new strategy reflects this shift, aiming to empower cooperative farms by introducing high-value investments and modern agricultural practices. By focusing on sustainable practices and market demand, the initiative seeks to enhance the livelihoods of farmers and stimulate local economies.
