Tanzania Considers Taking Over Mohammed Dewji’s Idle Tea Estates to Revive Industry and Empower Farmers
Tanzania is considering a major shake-up in its tea sector as the government weighs taking control of more than 2,000 hectares of idle tea estates linked to billionaire businessman Mohammed Dewji in the Mbeya Region, amid growing pressure to revive agricultural production and protect the livelihoods of thousands of smallholder farmers.
Authorities say ongoing negotiations with Mohammed Enterprises Tanzania Limited (MeTL) could determine whether the dormant estates are restored under private management or repossessed and redistributed to local farming cooperatives and tea growers.
Speaking during a parliamentary session this week, Deputy Minister for Agriculture David Silinde revealed that the government is actively engaging MeTL over the future of the plantations and associated tea-processing factories, which have remained inactive despite repeated calls for revitalisation.
The issue was raised after concerns emerged over the impact of the stalled estates on tea farmers across Tanzania’s Southern Highlands, many of whom have struggled to access reliable buyers for their green tea leaves since operations slowed down.
According to Silinde, one of the options under consideration would see the government reclaim the land and transfer management of the estates and factories to farmer groups and cooperative societies. The proposal is aimed at allowing local farmers to participate more directly in the tea value chain instead of depending on private facilities that have remained dormant for years.
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Officials believe reviving the estates could significantly boost Tanzania’s tea industry, improve farmer incomes and strengthen economic activity in one of the country’s key agricultural regions. Tanzania is currently Africa’s third-largest tea producer, generating between 22,000 and 32,000 metric tons annually while supporting millions of livelihoods connected to cultivation, processing and export activities.
The growing scrutiny over MeTL’s tea assets dates back more than a year. In September 2025, President Samia Suluhu Hassan publicly criticised the company during a campaign rally in Rungwe, signalling the government’s intention to repossess one of the estates after concluding that promised developments under privatisation agreements had not materialised.
The remarks intensified pressure on MeTL and its chief executive Mohammed Dewji during Tanzania’s election season, with authorities demanding stronger commitments toward agricultural investment and estate rehabilitation.
In response to the criticism and broader concerns surrounding its agricultural portfolio, MeTL secured a $24.6 million senior corporate loan from the African Development Bank in November 2025 as part of a wider $74.7 million agricultural modernisation programme.
The financing package was designed to support the rehabilitation of ageing tea estates, convert more than 1,000 hectares into organic plantations and modernise tea-processing facilities. The broader initiative also included investments in sisal and macadamia farming as the conglomerate sought to reposition itself within Tanzania’s agricultural sector.
Despite the funding injection, government officials have continued expressing concerns over the inactivity of the tea estates. Agriculture Minister Hussein Bashe had earlier stated that the government may be forced to intervene if MeTL failed to restore operations within a reasonable timeframe.
Negotiations between the Tanzanian government and MeTL are still ongoing, with authorities yet to announce a final decision or timeline regarding the future ownership and management of the estates. However, the outcome is expected to have major implications for Tanzania’s tea industry, foreign investment confidence and the future role of cooperatives in the country’s agricultural economy.
