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Tanzania has signed a trade agreement with China to export sunflower seed cakes and pepper, marking a significant step in the bilateral agricultural trade. The Chinese Minister for Customs signed the agreement during President Samia Suluhu Hassan’s recent official visit to China where she attended the FOCAC summit and held talks with several potential investors.
Speaking on the achievements of the visit, Deputy Minister for Agriculture, David Silinde, highlighted the importance of the deals, particularly in boosting Tanzania’s agricultural exports. Tanzanian delegation met with major investors who are ready to invest in various crops to enhance value chains. For example, we had discussions with Mainland Group, which has agreed to build a large sunflower oil processing factory in Tanzania, stated Silinde.
The Mainland Group previously announced that it will invest USD 28 million to produce oil from sunflower seeds in the Dodoma Region. The Mainland Group targets to process between 30,000 tonnes and 35,000 tonnes per year depending on the availability of sunflower seeds. China’s Yueyang City Mayor, Xie Weijiang, said when touring the construction site in June this year that the factory expects to start operation at the end of this year. The factory is very modern and will produce high-quality oil from sunflower seeds, the mayor stated further. He was accompanied by a delegation of 18 people. The firm will have four silos with a maximum capacity of storing 30,000 tonnes. Additionally, the Mainland Group trades agro-products like maize, soybeans, cotton, sesame, cashews, cassava, rice, sorghum, coffee beans, cocoa beans, and agricultural by-products like corn starch, soybean meal, and cottonseed cake.
The demand for sunflower oil in Tanzania is high and local production remains a challenge. These agreements will not only help solve the local demand but also ensure that we meet the quality standards necessary for export to China. However, the Minister did not reveal much information regarding the specifics of the signed deal, leaving some details about the trade terms and conditions undisclosed. Previously, Tanzania did not have permission to sell its agricultural goods in China, but following the FOCAC, these markets are now opening.
In line with President Samia’s vision, Tanzania is shifting its focus to modern agriculture by promoting irrigation farming. The President has directed that farmers should no longer rely on rain-fed agriculture but instead on irrigation. Part of this strategy includes building dams and harvesting water for irrigation purposes. During the FOCAC summit, China allocated funds to Africa, specifically earmarked for sectors like irrigation over the next three years. Tanzania will be among the beneficiaries of these funds and in that period, the country aims to complete ongoing irrigation projects and open new areas for irrigation. This includes the construction of 140 large dams, which will be crucial in transforming the agricultural sector.
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Last month China authorised local companies to export avocados directly to its market worth slightly over 150 million US dollars (about 408.7bn/-). This is a shift from traditional export markets in Europe and the Middle East. During President Samia’s state visit to Beijing, Tanzania and China signed a protocol on sanitary and phytosanitary (SPS) requirements, allowing Tanzanian avocados to enter China’s vast market.
