Soybean farming receives $4.8 million investment boost

Dar es Salaam. Tanzania’s soybean sub-sector has received a boost following the signing of a $4.8 million financing agreement that seeks to improve productivity, market access and rural incomes.

The agreement signed between the Private Agricultural Sector Support (PASS) Trust and the Royal Norwegian Embassy intends to revitalise soybean farming through a three-year initiative called Soybean Value Chain Support Project.

Under the agreement, the Royal Norwegian Embassy will provide a $2.4 million grant, which will be matched by PASS Trust through its credit guarantee mechanism.

The combined investment will support more than 12,500 farmers in the Ruvuma Region—40 percent of whom are women and youth—by providing access to improved seeds, mechanisation, training and reliable markets, according to a joint statement issued at the weekend.

Yields are expected to rise from the current 700 kilogrammes per hectare to more than 3,000 kilogrammes, with household incomes projected to increase by up to 40 percent.

PASS Trust Managing Director Yohane Kaduma described the partnership as a milestone in Tanzania’s agricultural transformation journey.

“This collaboration with Norway represents not just financial support but a shared commitment to inclusive and climate-resilient growth. Through this partnership, we aim to transform Tanzania’s soybean sector into a driver of food security, import substitution, job creation and sustainable rural development,” he added.

The project will be implemented through PASS Trust’s Commodity Compact Financing Model, which integrates financial guarantees, technology and structured market linkages to reduce risks in agricultural lending.

The model connects smallholder farmers to processors, aggregators and financial institutions through contract farming and guaranteed offtake arrangements, encouraging banks to lend confidently to the agriculture sector.

Representing the Royal Norwegian Embassy, Head of Cooperation Mr Kjetil Schie reaffirmed Norway’s commitment to supporting sustainable agricultural growth in Tanzania.

“This partnership reflects our shared ambition to make agriculture a driver of inclusive and sustainable growth,” he said.

“By strengthening nutrition outcomes through soybean production and empowering women and youth to participate actively across the value chain, we help build resilient communities and lasting impact,” he added.

He also emphasized that the project aligns with Norway’s global development priorities, including climate-smart agriculture, digital inclusion and gender equality and encouraged other stakeholders to consider scaling up the Commodity Compact model to strengthen value chains and promote trade and investment collaboration.

The initiative aligns with Tanzania’s key agricultural frameworks, including the Agriculture Sector Development Programme (ASDP), Agenda 10/30 and the Agriculture Master Plan 2050. It also supports global goals such as the UN Sustainable Development Goals on zero hunger, gender equality and climate action.

Climate-smart innovations—such as certified seed systems, soil-friendly mechanisation and digital platforms for real-time market and weather data—will form part of the project’s core implementation strategies.

Beyond soybeans, the partnership is seen as a model for future collaborations in other value chains such as sunflower, coffee, horticulture and wheat.