In December 2022, OeEB signed a mezzanine loan agreement for EUR 0.8 million with BIOTAN Austria GmbH under the African-Austrian SME Investment Facility (AAIF) provided by the Austrian ministry of finance. BIOTAN will use the funds to set up a processing plant for organic cashews in Tanzania.
|Project name||BIOTAN - Processing organic cashews in Tanzania|
|Sector||Agribusiness / Agriculture|
|OeEB project volume||EUR 0.8 million|
|International climate finance according to UNFCCC||Yes|
|Projekt partner(s)||BIOTAN Austria GmbH|
In total, production capacities of 20 tonnes of Raw Cashew Nuts per day will be created and over 3,000 local partner farmers will benefit from new sources of income over the next 10 years.
Cashews are an important crop in Tanzania and over 700,000 households depend on cashews for 75% of their income. However, only about 10 % of the cashews produced in the country are processed in Tanzania. This deprives the country of important foreign exchange earnings and thousands of jobs.
BIOTAN has already been able to establish itself through its subsidiary BIOTAN GROUP LIMITED in recent years with a demo farm and a processing plant in the Dar es Salaam and Mkuranga region. Currently, business is conducted through an existing factory, which is rented, and nearly 300 local employees. With the mezzanine capital, BIOTAN wants to invest in its own infrastructure (land, warehouse and additional machinery for processing) and establish a suitable structure for processing organic cashew nuts.