David Runge (left) and his partner at Tamu Tamu Tanzania, Peter Schuurs
Every year, East Africa imports apples worth $400 million to $500 million. Despite this substantial demand, apples have traditionally not thrived in the region’s warm climate, which favours cooler growing conditions. German entrepreneur David Runge, however, saw an opportunity in Tanzania, believing there was potential not only to grow apples locally but also to produce apple-based products like juice.
A few years ago, he and his business partner Peter Schuurs invested in Tamu Tamu Tanzania, which claims to be the region’s first commercial apple farm and apple tree nursery, located 540km west of Dar es Salaam. The company has conducted extensive research and development to identify and cultivate apple varieties that can thrive in the equatorial climate.
The farm’s origins trace back to 2016, when two young entrepreneurs initially established it and began researching suitable apple varieties. Schuurs, who is a family friend of Runge, was the first to recognise the potential in acquiring the farm, bringing the idea to Runge’s attention.
Intrigued, Runge conducted his own research and uncovered strong demand for apples in the East African market. “I did my own due diligence. And [whether] if it is in Kenya, Uganda or Tanzania, at every bus stand, in traffic, people would sell apples. At every supermarket you would find apples. And they are sold here for half a dollar a piece. That’s a lot of money,” he explains.
Runge and Schuurs decided to partner, with Schuurs overseeing farm operations and Runge handling commercial aspects. They financed the farm’s purchase with personal savings from their previous corporate careers.
Together, they began the process of rehabilitating the farm and putting new systems in place. Building on the initial work of the previous owners, they continued R&D efforts to produce apple varieties best suited to the region.
Selling apple trees has become one of the company’s key revenue streams. The business has supplied trees to buyers across Africa and even as far as South America. A major part of their strategy involves selling apple trees to small-scale Tanzanian farmers, with the goal of later buying back the apples for their processing operations.
Runge says that farmers typically start by purchasing a small number of trees, anywhere from 50 to 1,000, to see how well they perform. When satisfied with the results, they return to buy more. As a result, apple tree sales are likely to increase significantly in the coming years.
In addition to supplying apple trees, the company has expanded into producing apple-related products, such as juice, cider, and dried apples.
Watch our full in-depth interview with David Runge: Why this German invested in Tanzania’s first commercial apple farm
Discussion about this post