The Board of Directors of the African Development Bank Group has approved a $24.6 million senior corporate loan to Mohammed Enterprises Tanzania Limited (MeTL) to revitalise and expand Tanzania's agro-industrial production.
The project will rehabilitate ageing tea estates, convert more than 1,000 hectares into organic plantations and upgrade processing factories to double production capacity. It will also establish at least 15,000 hectares of sisal plantations and a new 200-hectare macadamia plantation, while strengthening rural infrastructure, providing modern machinery, and enhancing value chains that connect smallholder farmers to regional and global markets.
This investment is expected to create more than 1,400 new jobs, mostly for women and youth, generate over $10 million annually in new export earnings, and contribute approximately $36 million in fiscal revenues for Tanzania. By supporting smallholder producers, especially women farmers, the project will help raise household incomes and reduce rural poverty.
"This partnership is about transforming potential into prosperity," said Charles Orwothwun, AfDB Chief Investment Officer and project team leader. "By combining innovation, sustainability, and inclusion, we are helping Tanzania build a more resilient agricultural future that works for its people and the planet."
Founded in the 1970s, Mohammed Enterprises Tanzania Limited is a diversified agro-industrial and general trading company which operates multiple bulk storage and processing facilities across Tanzania. Some of these facilities are vertically integrated with the company's farms, while others are linked to specialised agricultural supply chains. The company's specialised agro-industrial division will oversee project execution.
The investment underscores the African Development Bank's confidence in Africa's private sector and its commitment to unlocking long-term financing for agricultural transformation. By leveraging the strength of a homegrown company like MeTL, the project demonstrates how African enterprises can drive inclusive growth while protecting the environment.
The Bank's loan forms part of a broader $74.7 million investment program, co-financed by ILX B.V. (an emerging market fund) and MeTL's own equity to modernise tea, sisal, and macadamia plantations while promoting inclusive and climate-smart growth and strengthening Tanzania's position as a lead producer of these crops.
"This investment will be a game changer for Tanzania's agricultural transformation by combining industrial efficiency with inclusive growth, empowering rural women and youth while building climate resilience," Orwothwun said.
