KOM Food Products Invests TSh100bn to Boost Rice Production in Tanzania

TSh100 billion in a large-scale rice processing factory in Kahama District, Shinyanga Region, marking a major boost for Tanzania’s agricultural and food manufacturing sector.

The Director of the company, Dr Jesca Kabalwa, disclosed this during an inspection visit by officials of the Tanzania Investment and Special Economic Zones Authority (TISEZA), who assessed the progress of the project.

The visit formed part of the ongoing National Campaign to Promote Domestic Investment, which aims to accelerate local industrial growth and strengthen value addition across key sectors.

According to Dr Kabalwa, the factory officially registered in 2024 and commenced production in January 2026. Since operations began, the facility has created 55 jobs, with the majority of employees drawn from the local community.

She noted that collaboration with TISEZA has significantly eased project implementation. In particular, government-backed investment incentives helped the company access capital relief and fast-track operations.

Beyond job creation, the project is already delivering direct benefits to smallholder rice farmers in Shinyanga. The factory actively sources rice from local producers, thereby increasing farmers’ income and improving market access.

Dr Kabalwa emphasized that this approach strengthens rural livelihoods while supporting sustainable agricultural development in the region.

The factory operates on 54 hectares of land and has secured multiple tax incentives through the Investment Authority. These include customs duty exemptions on capital assets such as industrial machinery, truck heads, and construction materials used to build the facility.

As Tanzania intensifies efforts to boost domestic production and reduce food imports, the KOM Food Products investment stands out as a strategic contribution to national food security, industrialisation, and inclusive economic growth.