Tanzania launches tea auction to rival that of regional giant Kenya

By John Muchira in Nairobi November 17, 2023

Tanzania has launched an online tea auction in a move aimed at boosting farmers' earnings and increasing the value of its tea on the global market.

In a move that will have a significant impact on neighbouring Kenya’s Mombasa Tea Auction, Tanzania contends that the launch of its own auction system is critical in transforming the domestic industry.

The move ultimately means that the East African nation will stop exporting its tea through the port of Mombasa in Kenya, the region's top seller.

Media outlet The Standard quoted Tea Board of Tanzania director general Mary Kipeja as saying that the tea auction would establish the country as a central hub for neighbouring tea-producing countries to trade their goods.

“Apart from minimising market costs, the tea auction is going to be a part and parcel of the implementation of the local content agenda, therefore empowering Tanzanians economically,” she said.

Kipeja added that the auction is going to significantly change the income of large and small-scale growers because costs incurred for tea transporting to Mombasa will now be used for strengthening and improving productivity.

The auction is expected to open markets for over 65 tons of tea at the ports of Dar es Salaam and Tanga in Tanzania.

Ten processors have already signed contracts with brokers with seven others being in the process of finalising agreement documents.

In recent years, Tanzania has recorded a decline in tea exports and earnings after raking in $12.2mn after exporting 7,875 tons in the 2022/23 financial year. During the 2020/21 financial year, the country exported 24,000 tons earning $39mn.

Related Articles

Malawi-focused Mkango Resources' unit to merge with US-based Crown PropTech

Lancaster Exploration (Lancaster), a subsidiary of Mkango Resources (Mkango), has announced a merger with Crown PropTech Acquisitions (CPTK), a US-listed special purpose acquisitions company. ... more

Africa adds 4.5GW new hydropower capacity in 2024, says IHA

Africa made notable progress in hydropower development in 2024, adding over 4.5 GW of new capacity, more than double the 2 GW installed in 2023, according to the International Hydropower Association ... more

Kosmos Energy and partners start commercial operations at Mauritania-Senegal GTA LNG project

US-based oil and gas exploration and production (E&P) company Kosmos Energy has announced the start of commercial operations at the Greater Tortue Ahmeyim (GTA) liquefied natural gas (LNG) ... more

Dismiss