Tanzania's Young Entrepreneurs Turn Spoiled Produce into Business Opportunities

In Tanzania, nearly 40 per cent of tomatoes produced go to waste every year due to storage and market-related challenges. However, young entrepreneurs are finding innovative ways to turn post-harvest losses into profitable businesses. By transforming tomatoes and other fruits into commercially viable products, such as wine and fruit juices, they are creating new income opportunities while addressing one of agriculture's persistent challenges.

Angelina Silvester, Chief Executive Officer of Elite Brand, is one of the entrepreneurs exploring this opportunity. Her Iringa-based company specializes in tomato processing and wine production. Silvester said the idea behind the business came from witnessing the large quantities of tomatoes wasted annually, prompting her to explore ways of giving the crop greater commercial value through processing.

Silvester's company has secured an affordable loan through the Agricultural Inputs Trust Fund (AGITF), under the Building a Better Tomorrow (BBT) programme. The loan has enabled the company to acquire additional machinery for its factory, reducing production time and allowing it to manufacture more products within a shorter period. This financing has also helped the company launch its products in the market, opening up opportunities to expand operations and reach more customers.

The Agricultural Inputs Trust Fund (AGITF) operates under the Ministry of Agriculture and seeks to empower smallholder farmers, women, and young people by providing affordable financing for agricultural activities and businesses linked to the sector. The fund operates through two lending mechanisms: direct loans to individual farmers, groups, and cooperative societies, and a Credit Guarantee Scheme implemented in collaboration with financial institutions.

Ernest Kiwango, a young entrepreneur involved in fruit juice production, also benefited from the financing initiative. He identified a business opportunity in mango processing after observing the large quantities of fruit harvested and left to rot in farms, particularly during the November and December harvest season. With the help of the Government's fund, Kiwango accessed a loan and established a factory for producing different types of fruit juices.

Access to affordable financing is essential for young people seeking to turn business ideas into sustainable ventures, particularly within the agricultural value chain. According to AGITF Operations Manager Jenny Hebron, the fund provides guarantees to financial institutions on behalf of borrowers, enabling them to secure financing to expand agricultural production and agro-processing activities.

The initiatives by young entrepreneurs like Silvester and Kiwango demonstrate the potential for agro-processing and value addition to create new income opportunities and address agricultural challenges in Tanzania. With the support of financing initiatives like the AGITF, these entrepreneurs can expand their operations, reach more customers, and contribute to the growth of the agricultural sector.

Key points

• Young entrepreneurs in Tanzania are transforming wasted produce into profitable businesses through agro-processing and value addition.
• The Agricultural Inputs Trust Fund (AGITF) provides affordable financing for agricultural activities and businesses linked to the sector.
• Access to affordable financing is essential for young people seeking to turn business ideas into sustainable ventures in the agricultural value chain.