Market Assessment

DAI pesa - Tanzanian Cashew Industry Sub-sector Study 2003

    The DAI Private Enterprise Support Activities (PESA) project supported by USAID in Tanzania aims to promote the development of micro and small enterprises in a variety of sub-sectors. The Cashew Nuts Sub-sector Study was prepared by ECIAfrica for DAI PESA. Although cashew nuts are Tanzania's leading agricultural export, only 17% of production is processed to add value in Tanzania. The rest is sold in raw form to India. Private businesses recognize the potential gains of increasing processing capacity and reducing dependence on the Indian market. But the lack of a sub-sector strategy and a negative policy environment discourage investment in the cashew industry and constrain long-term growth.

    Methods for info gathering
    literature review, field visits, interviews with key stakeholders

    Summary of results
    The study recommends that DAI PESA compare the policy environment in Tanzania against other cashew growing countries in order to contribute to an overall strategic plan for the industry. (Note: This recommendation was carried out and the resulting study, Policy and Taxes in the Tanzanian Cashew Industry, can be found here.)

    Associated Activities and Documents
    Impact Assessment
    »Private Enterprise Support Activities (PESA), Tanzania, DAI, USAID 2002-06