Agriculture Minister Hussein Bashe said the government is set to implement sweeping reforms in the tea industry, aiming to improve transparency, enhance farmers’ earnings, and prevent the sector’s collapse.
Speaking at the annual tea stakeholders’ meeting in Dodoma, Mr Bashe unveiled a new strategic direction for the industry, anchored by the newly reconstituted Tea Board of Tanzania (TBT). The board, now chaired by CRDB Bank Group CEO Abdulmajid Nsekela, has been tasked with conducting a comprehensive review of the sector, starting with an independent breakdown of green tea leaf production costs.
“The immediate task for you, Mr Nsekela, is to form a team that will conduct an independent analysis of the costs involved in tea production, from the farmers to the factories,” said Mr Bashe. “We need transparency in this process to ensure that every factor contributing to the cost is fully understood.”
The government expects a detailed cost structure report within two weeks, especially following disputes over the proposed Sh360 per kilogramme price of green tea leaves, which some factory owners claim is too high.
The reform plan also includes efforts to revive struggling tea companies. Mr Bashe directed the TBT to engage with firms such as Mohammed Enterprises Tanzania Limited (MeTL), DL Company, and Wakulima Tea Company (Watco), which have suspended or ceased operations.
“Ensure that no assets of Watco have been sold off. If they have, those involved must consider themselves as having registered a loss, because they will be returned to the government at no additional cost,” said Mr Bashe to resounding applause. He also urged MeTL and DL Company to present clear turnaround plans or exit the sector peacefully.
DL Company, in particular, has come under scrutiny, with Industry and Trade Deputy Minister Exaud Kigahe recently issuing a three-month ultimatum to clear Sh124 million owed to farmers and Sh1.6 billion in workers’ retirement benefits. Failure to act, he warned, could lead to further deterioration of the company’s Mufindi-based operations.
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In response, Mr Nsekela expressed confidence in the TBT’s ability to drive change. “We need to involve all stakeholders and ensure no one group benefits disproportionately. By being transparent and listening to all, we will be able to improve the sector,” he said. He also cited President Samia Suluhu Hassan’s 4Rs—Reconciliation, Resilience, Reform, and Rebuild—as guiding principles for the board’s mandate.
The revamped TBT brings together professionals from finance, agriculture, marketing, and research, aiming for a multi-disciplinary approach to solving the long-standing challenges in the sector.
As part of its broader responsibilities, the board has also been assigned to review Tanzania’s tea policy and strategic plan to introduce sustainable solutions that ensure long-term growth.
Mr Nsekela, who previously chaired the Tanzania Smallholder Tea Development Agency (TSHTDA) and currently leads the Tanzania Cooperative Development Commission, acknowledged the complexity of the task ahead but remained optimistic.
The tea sector remains a crucial part of Tanzania’s economy, supporting over 32,000 smallholder farmers and impacting more than two million people. Between December 2024 and March 2025, the country earned over Sh50.25 billion from tea exports, according to TBT data.
Meanwhile, local leaders, including Rungwe District Commissioner Jaffer Haniu, flagged issues such as delayed payments and low prices for fresh leaves as key deterrents to investment in the industry.
