this 29-year old just raised $500,000 to process cashews in tanzania

Cashew nuts are the main export crop in Tanzania and an important source of income for many small farmers.
East African countries produce around 200,000 tons of cashews per year and are considered one of the best quality cashews in the world.
However, in this area, it is not enough to add value in the form of processing raw cashew nuts and capacity-building.
The lack of local processors in Tanzania means that there are very few jobs created from such valuable commodities;
Cashew nuts are an important source of foreign exchange income for the country.
Ambitious 29-year-old Fahad awade
A one-year-old entrepreneur from Tanzania recently moved home from Canada and set up a cashew nut processing facility in Tanzania in an effort to bring international standards and traceability to cashew nuts.
He\'s the founder of YYTZ agriculture.
A cashew processing company that adds value locally while creating jobs and increasing the income of farmers and the community as a whole.
The annual installed capacity of the company\'s flagship processing facility in Zanzibar is 2,500 tons. YYTZ Agro-
Processing recently raised an investment of $500,000 from the African Enterprise Challenge Fund in order to establish another processing facility in Mtwara, southeast Tanzania.
I recently chatted with him in Arusha and he spoke about his journey and told me that he planned to change the way Cashew nuts are handled in Tanzania.
What is your educational and professional background?
I am a young entrepreneur in Tanzania.
In the process of growing up, I participated in the Holy
Christopher\'s is a British private school in Bahrain, where we lived for 8 years.
We moved to Canada when I was 10.
There, I was admitted to international business and technology programs at the age of 11.
This is the basic experience of instilling and cultivating entrepreneur spirit in me.
I have been studying accounting, business marketing and startup research since I was a child.
By the age of 12, I had created a business with a product and sold it on the District School Board.
I continue to study business marketing at York University.
When I was in college, I started doing t-
There are two friends in the shirt, Lavado pull and Momarr Tal (
Recently Forbes Africa under 30 years old 30).
We call it the Malyka costume, which means the Angel of Swahili.
All of this is a positive and powerful message that has become popular in Toronto.
We issue in Canada, Bahamas and Gambia.
I went to Bangladesh and got a manufacturing contract to produce our products from the cutting and stitching stages.
This gives us more creative control over our products and enables us to expand our product line.
I know you have been in Canada for a while;
What are you doing there and what makes you decide to go back to Tanzania and venture into cashew processing?
Yes, I grew up and lived in Canada for many years.
I recently returned to Tanzania to invest.
Going home to start a business has always been a dream for me.
Following my visit to Tanzania at the end of 2012, I decided to explore opportunities in processing and value --addition.
Tanzania is a resource-rich country, but like many in Africa, it lacks local value-added services.
I think this is an opportunity.
I spent a lot of time traveling in rural Tanzania, meeting farmers and getting to know the cashew industry.
I practiced a principle I learned from Toyota Motor Company genchi genbutsu;
This means going to the source and seeing it for yourself.
This thorough study has helped me make a wise decision about our business.
After extensive research on the cashew industry, I have come to the conclusion that processing and value-added do need to be done.
Tanzania is the fourth-largest/fifth-largest producer of cashew nuts in the world, but we export 80% of the raw materials for our crops.
In addition, our crops are being processed in other countries and then re-processed
Export to developed markets.
Tell me your business story.
When did you start the factory?
How did you set it up and who started the funding you provided?
After deciding to invest, I worked with my father, who retired after the business pilot.
I made a complete business plan.
We decided to invest in a modern processing plant using automation equipment.
This will make our operations more efficient and give us economies of scale.
We went to Vietnam, which is the largest exporter of cashew nuts in the world.
Vietnam has achieved tremendous growth by promoting the mechanization of cashew processing.
We visited one of the mountain tops.
Five of the largest factories, learn their operations, learn best practices.
We bought cashew nuts.
Specific equipment from well-known manufacturers in Vietnam.
At the same time, the commercial feasibility of our project depends on having an export market.
I started studying, cold.
Send emails to companies in Europe and North America.
My goal is to get interest from buyers.
This will help us when we need to get financing later.
I found a buyer in the Netherlands.
They visited us in the past September, when we finalized the export contract.
We are now in the final stages of installing the equipment and starting production at the Zanzibar plant.
Accompany us through the processing of cashew nuts?
The processing of cashew nuts requires many stages before getting the final waist nuts that most people know.
Its original form is almost unrecognizable.
The shell is the hardest to disassemble.
This process starts with the steaming of raw cashew nuts, which softens the shell and makes it easier to cut.
The next step is to cut the shell without damaging the kernel.
Now, when the kernel is taken out of the shell, it is dried to reduce moisture.
The kernel still has an external testa that needs to be stripped.
Stripping is now done by the machine, any
Peel the kernel by hand.
After peeling the cashew nuts, it can be graded.
Grading according to size and color.
There are 26 different grades, from the whole white block to the broken small piece, which is used for desserts and sweets.
The most common cashews are WW320, which is 320 of all white, which means 320 grains per pound.
After grading the cashew nuts, rinse with nitrogen and vacuum packed in 50 or 25 lb cartons and export to Europe and North America.
You recently raised $500,000 from the AECF Africa Challenge Fund to build a new processing plant.
How are you going to deploy these new funds?
We recently received $500,000 from the African Enterprise Challenge Fund.
We have been working with cashew farmers groups in the Mtwara region to help them add value to their crops and earn more income.
We will use these funds to set up processing centers for cashew farmers.
Our facilities will have modern equipment and adequate storage facilities.
Because we will be the only market, farmers will be guaranteed by the market. takers.
We will buy half
Process and complete processing of cashew nuts at our Zanzibar factory.
We will provide training in financial knowledge and business skills, as well as food safety for our farmer groups.
By integrating them into the cashew value chain, farmers will be able to earn more from their crops.
By empowering farmers, we can help alleviate poverty in rural Tanzania.
Where is the main market for cashew nuts?
Our main export market is Europe and we currently have export contracts with a company in the Netherlands.
The Netherlands is the main importer of cashew nuts into Europe, accounting for 42% of imports.
We also received interest from other European companies.
Global demand for cashew nuts continues to grow, with European imports of nuts growing by 12%. a.
In the past four years
Tanzania cashews are considered one of the best cashews in the world, which gives us an added advantage in the market.
What is the basic goal of cashew processing?
Our basic goal in cashew processing is to create value in the cashew industry in Tanzania.
We are working with cashew farmers groups to make sure they are part of the cashew value chain.
We plan to add more value to cashew nuts, baking, seasoning and retail packaging.
We focus on efficient operations with a focus on quality and food safety.
We have built our factory and designed processes that meet and exceed international food safety standards.
Food safety is an important aspect of the cashew industry, which is being highlighted by discerning buyers.
Is your cashew processing facility currently in optimized condition and how many cashew nuts do you produce each year?
Our cashews Zanzibar Cashews factory will start production this season.
Our annual capacity is 2,500 tons.
We plan to make the most of our capacity in the second year and plan to add additional equipment to increase our capacity.
Our goal is to reach 10,000 tons per year by 2021.
You are an enthusiastic reader.
What are some of the lessons you have learned that will help your business?
Yes, I am an enthusiastic reader.
I like to read business books that introduce successful entrepreneurs and businesses.
I have learned a lot from Jim Collins\'s great, and the most important of them is to find the right person.
Dave Packard, founder of HP, said, \"No company has been able to increase revenue at a rate that continues to get the right people.
\"It highlights the importance of having a great team in your organization and recruiting talented people.
I also applied many of the principles I learned from Toyota Motor for lean manufacturing and continuous improvement.
I often seek advice and guidance from successful entrepreneurs.
I always learn from their experiences and internalize them in order to apply them in my own business.
I have set up an advisory committee that includes an expert with 25 years of experience in the cashew nut industry whose experience and insights are invaluable to us.
As an entrepreneur, how do you deal with the challenges and setbacks you may face?
As an entrepreneur, I have experienced quite a few challenges, and without them, I will not achieve today.
I am a firm believer in God and it is impossible without him.
In the past year, I have become a student of the ancient Stoic philosophy, which teaches us that there is an opportunity in every obstacle and challenge.
In practice, I learned to admit that there will always be challenges and setbacks.
I am now ready to learn from them and use them to serve me.
A great book about stooge\'s philosophy by Ryan Holiday is \"obstacles are the way\".
Having the right mindset when faced with seemingly insurmountable obstacles, you can stay objective and choose to see the good side in a situation.
This is a philosophy that many great leaders, including John D. , are practicing.
Rockefeller, Steve Jobs, James Stockdale and Marcus orreus.
As Marcus olleus said before almost 2000, \"the obstacles to action have driven action.
Things that hinder the road become the road.
\"In my time, another thing that helped me --to-
This day is gratitude and mindfulness.
Even if it\'s only 10 minutes, I practice meditation every morning.
I always take the time to think and align my focus with my goals.
Follow me on Twitter @ MfonobongNsehe. Email: mfon. nsehe (at)gmail.