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Tanzania - Second Cashewnut Development Project (English)

The Second Cashewnut Development Project will increase Tanzania's annual processing capacity from 73,000 tons to 103,000 tons of raw cashewnuts all produced by smallholders, thereby increasing the local value added and creating employment for about 3,000 persons. It will increase Tanzania's foreign exchange earnings and contribute to raising producers income. The project will finance the construction and equipping of three factories with a total processing capacity of 30,000 tons of raw nuts, the expansion of cashewnut shell liquid storage facilities, the construction of staff accommodations and water and power supply facilities. It will also finance a cashewnut research program, an occupational health hazards study, and the provision of technical assistance for CATA. The project faces commercial risks, typical of undertakings of this nature, given the uncertainty of future raw cashewnut and cashewnut kernels export prices. However, it is considered unlikely that cashewnut kernels prices will fall below a level which will reduce the economic rate of return to an unacceptable level.


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    Memorandum & Recommendation of the President

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    Tanzania - Second Cashewnut Development Project

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    Payments to the Bank;rural water supply facilities;self-sufficiency in food production;balance of payment;per capita income;community education center;agriculture and industry;crop and livestock;decentralization of authority;provision of equipment;development finance company;equitable income distribution;asset and liability;annual interest rate;procurement and disbursement;bid validity period;producer price increase;agricultural producer price;integrated rural development;provision of infrastructure;working capital requirements;means of production;share of revenue;total debt service;public sector expenditure;net foreign exchange;average exchange rate;eradication of poverty;charges for water;production of cotton;food crop production;imports of maize;economically active population;Foreign Exchange Reserve;debt service burden;Strategy for Agriculture;commodity price boom;power and water;domestic price level;package of policy;reallocation of investment;civil works;research program;storage facility;processing capacity;agricultural sector;rural area;local value;agricultural production;extension service;export crop;trade deficit;long-term growth;raw material;rural population;export price;accounting staff;state farm;government budget;capital inflow;processing equipment;packing material;project costing;Capital Inflows;storage tank;audited account;political party;hand processes;pricing policy;road maintenance;financial reporting;Rural Sector;foreign assistance;mechanical process;sales tax;agricultural output;political parties;negligible amount;domestic demand;import requirement;wage policy;adjacent areas;import price;ancillary activities;annual production;monitoring criteria;project datum;productive sector;private consumption;expansionary fiscal;import control;procurement arrangement;grade system;accounting practice;separate account;international market;Disease Control;research equipment;project construction;management service;credit effectiveness;Agricultural Extension;cost escalation;advance contracting;foreign expenditure;retroactive financing;engineering consultant;government procedure;agricultural marketing;input price;financial loss;operational efficiency;semi-skilled worker;research station;plant program;seed production;process industry;crop development;marginal impact;management capability;government grant;staff housing;investment expenditure;management problems;management responsibility;professional service;construction cost;poor accounting;adequate provision;extension work;export commodity;central service;cultivation practice;regional infrastructure;administrative structure;administrative autonomy;decentralized government;subsistence production;regional growth;Investment strategies;national livestock;tsetse fly;traditional line;Population Growth;agricultural expansion;family labor;full participation;population group;income gain;support infrastructure;forestry sector;undisbursed loans;absorptive capacity;smallholder farmer;long-term benefits;working level;equitable distribution;initial investment;trading partner;manufactured goods;loan amounting;financial difficulties;soap manufacture;productive activity;industrial production;political structure;social equality;power supply;consumer good;consumer goods;salary policy;policy package;macroeconomic indicator;weather condition;cash crop;food aid;export performance;tight restriction;concessional term;commercial loan;export volume;agricultural problem;import side;progressive taxation;social life;domestic saving;gross investment;parastatal enterprise;export sector;bilateral sources;economic crisis;massive decline;merchandise import;fixed rate;Exchange Rates;social transformation;hazard study;commercial risk;financing plan;Financing plans;bilateral aid;soil depletion;production incentive;field staff;smallholder income;quality seed;power facility;statutory authority;farm family;fighting poverty;export earnings;domestic production;export receipts;bakery product;government strategy



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Tanzania - Second Cashewnut Development Project (English). Washington, D.C. : World Bank Group.