Tanzania to Build New Grain Storage Facilities With TZS 1.2T Budget and Launch USD 490M Bond Scheme

Tanzania’s National Food Reserve Agency (NFRA) is planning to build new grain storage facilities and rehabilitate existing ones under a TZS 1.2 trillion budget for the 2025/26 fiscal year, it has been reported.

The investment aims to expand the agency’s total grain storage capacity from 776,000 tonnes to 1.1 million tonnes.

As part of the initiative, NFRA will construct new silos and rehabilitate dilapidated towers at Kipawa in Dar es Salaam and Mazwi in Sumbawanga, with the infrastructure component costing TZS 36.3 billion, funded by the central government.

In addition, NFRA is preparing to launch a food security bond scheme targeting USD 490 million from both local and international sources.

The proceeds will support the construction of additional storage infrastructure, particularly in the southern highlands, with a planned capacity of 300,000 tonnes.

The agency also intends to allocate TZS 800.6 billion for the purchase of 800,000 tonnes of maize, 150,000 tonnes of paddy, and other crops, including legumes, sunflower, and sugar, during the upcoming cereals purchasing season.

NFRA is set to announce grain purchasing centres shortly and will introduce a cloud-based digital tracking system to manage stock, streamline procurement, and enhance transparency.

The new system will issue digital goods received notes (GRN) and replace the manual processes previously in place.

Suppliers must meet defined criteria, including a valid tax clearance certificate and the capacity to deliver at least 2,000 tonnes of eligible crops such as white maize, millet, or rice.

Those not meeting the criteria may still participate through NFRA warehouses or designated purchasing centres, provided they have a signed agreement with the agency.

NFRA currently operates 72 purchasing points across eight regions: Dodoma, Dar es Salaam (Kipawa), Njombe (Makambako), Songwe, Rukwa (Sumbawanga), Arusha (Babati), Shinyanga, and Songea.