Tanzania, Al Dahra Sign $100m Farm Deal

Strategic capital for agricultural expansion

Tanzania has secured a $100 million agriculture investment from UAE-based Al Dahra to expand large-scale farming and irrigation infrastructure. The agreement reflects growing Gulf interest in African food production. It also signals Tanzania’s intention to modernise its agricultural base while deepening trade ties with the GCC.

The project will focus on sustainable crop production, irrigation systems and supply chain development. According to the Ministry of Agriculture of Tanzania, the partnership aligns with national plans to increase productivity and reduce post-harvest losses. Therefore, the initiative is positioned as both a food security strategy and an export diversification measure.

Boosting food security and export capacity

Agriculture remains central to Tanzania’s economy, employing a majority of the workforce and contributing significantly to GDP. However, productivity levels have historically lagged potential. Consequently, large-scale irrigated farming is seen as a catalyst for structural transformation.

Al Dahra’s investment is expected to introduce advanced irrigation technology and improved seed systems. In addition, it may facilitate structured off-take agreements for Gulf markets. This model supports predictable export flows while strengthening domestic supply resilience.

Data from the World Bank indicates that improved irrigation coverage can substantially increase yields in East Africa. Therefore, targeted capital deployment could have multiplier effects across rural incomes and agro-processing industries.

Regional integration and long-term outlook

The agreement also reinforces Tanzania’s position within the East African Community. As regional food demand rises, cross-border trade corridors are becoming more important. Hence, scaling commercial farming could support intra-regional exports alongside Gulf-bound shipments.

Moreover, the investment reflects a broader trend of sovereign and private Gulf capital targeting African agriculture. The Tanzania Investment Centre has consistently promoted agribusiness as a priority sector. As a result, structured partnerships are increasingly shaping the country’s investment landscape.

Over the medium term, Tanzania’s $100 million Al Dahra agriculture investment may contribute to higher value-added processing and improved logistics networks. If implementation remains on schedule, the initiative could support export earnings while enhancing food security fundamentals.

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