Tanzania’s coffee industry is experiencing a remarkable surge, with market share in Africa soaring by a staggering 71% in just three years. This impressive growth, driven by a 55% increase in production and improved farmer incomes, has catapulted Tanzania into a prominent player in the global coffee market.
The country’s coffee exports now generate a substantial US$240 million annually, a significant leap from the US$140 million recorded three years ago. This burgeoning success has caught the attention of the international community, culminating in the upcoming G25 African Coffee Summit in Dar es Salaam, where African leaders will convene to discuss strategies for revitalizing the continent’s coffee sector.
“We have made significant progress in this crop over the past three years,” said Agriculture Minister Hussein Bashe, highlighting the improved farmer incomes and increased production. However, he stressed the need for value addition within Africa, noting that the continent often exports raw coffee beans while importing far more expensive processed coffee.
“We sell raw coffee for an average of four dollars, but import processed coffee for nearly 20 dollars,” Minister Bashe lamented, emphasizing the missed opportunity to capture greater value within the African market.
The G25 Summit presents a crucial platform for African nations to address this imbalance. By fostering intra-African trade, promoting value addition, and harmonizing coffee standards, the continent can unlock its full potential in the global coffee market.
Tanzania, renowned for its high-quality Arabica beans, is well-positioned to capitalize on this growth. “If the government complies with international standards, we will see increased output and a wider tax base,” said Dr. Hildebrand Shayo, an economist, emphasizing the potential for job creation and economic growth within the country.
With its rich coffee heritage and a growing focus on quality and sustainability, Tanzania is poised to become a major player in the global coffee market. The upcoming G25 Summit offers a unique opportunity for the country to solidify its position and contribute to the revitalization of the African coffee industry.
