Tanzania’s government has stepped up negotiations with Mohammed Enterprises Tanzania Limited (MeTL) over more than 2,000 hectares of dormant tea estates in the Mbeya Region, signaling a possible takeover that could reshape the country’s tea industry.
Officials are now weighing options that include reclaiming the idle estates and redistributing them to smallholder farmers and cooperative societies.
The move comes as frustration grows over the prolonged inactivity of the plantations and processing factories, which many local farmers say has damaged their access to reliable markets.
Deputy Minister for Agriculture David Silinde revealed the ongoing talks during a parliamentary session while responding to concerns about the struggles facing tea growers in southern Tanzania.
According to the minister, the government wants to revive operations quickly.
However, authorities are also considering transferring factory operations directly to cooperatives so farmers can participate more actively in the tea value chain instead of depending on dormant private facilities.
The estates belong to Mohammed Enterprises Tanzania Limited, the business empire controlled by Tanzanian billionaire Mohammed Dewji.
The company has faced mounting political and public pressure over the condition of the estates and the slow pace of rehabilitation efforts.
Tea remains one of Tanzania’s key agricultural exports. As Africa’s third-largest tea producer, the country generates between 22,000 and 32,000 metric tons annually while supporting millions of livelihoods across farming communities.
Nevertheless, the shutdown of MeTL’s processing plants has left many growers struggling to sell green tea leaves at competitive prices.
The issue gained national attention in September 2025 when Tanzanian President Samia Suluhu Hassan publicly criticized MeTL during a rally in Rungwe.
She stated that the government was prepared to repossess one of the tea estates after concluding that promised development targets had not been achieved following privatization.
Her remarks intensified scrutiny on the company during the election season and increased pressure on MeTL leadership to accelerate investments in agriculture.
In response, MeTL secured a $24.6 million senior corporate loan from the African Development Bank in November 2025.
The financing formed part of a wider $74.7 million agricultural modernization program aimed at rehabilitating ageing tea estates, upgrading processing facilities, and converting more than 1,000 hectares into organic plantations.
The investment package also covered sisal and macadamia farming projects as MeTL attempted to reposition itself as a major force in Tanzania’s agricultural sector.
Despite the funding injection, government officials remain dissatisfied with the progress made on reviving the estates.
Agriculture Minister Hussein Bashe previously warned that authorities could intervene directly if MeTL failed to restore operations.
Negotiations between the Tanzanian government and MeTL are still ongoing, and officials have yet to announce a final decision or timeline.
However, industry observers believe the outcome could redefine how large-scale agricultural assets are managed in Tanzania while opening the door for stronger farmer participation in the tea economy.
As pressure mounts, farmers across Mbeya and the Southern Highlands continue waiting for a solution that could restore jobs, improve incomes, and revive confidence in one of East Africa’s most important tea-producing regions.
- Africa’s $4 Trillion Capital Crisis: Why African Money Funds the West While Africa Pays Higher Debt Costs
- Africa Industrial Future: Only 4 Countries Set to Dominate Manufacturing Growth
- The Blueprint Was Always Here: Ray Langa Says Global Markets Must Learn From Africa
- Africa’s $2 Trillion Capital Boom Signals New Era of Self-Financed Growth
- Top 10 Richest African Countries in 2026
