The FAO–UNIDO Agrifood Systems Transformation Accelerator (ASTA) supports the transformation of agrifood systems into more inclusive, sustainable and resilient systems by translating strategic priorities into practical and scalable investment solutions. In the Kigoma region of the United Republic of Tanzania, characterized by more than 30,000 smallholder farmers, limited domestic production capacity and high reliance on imported palm oil, ASTA (originally piloted as 3ADI+ in the United Republic of Tanzania in 2018) conducted a participatory value chain analysis and developed an upgrading strategy to promote import substitution, poverty reduction, environmental conservation, improved nutrition and gender equality.The upgrading strategy proposes a three-pronged approach focused on production, processing and governance. At the production level, it promotes inclusive business models, including village clusters, village estates and an industrial plantation, supported by improved Tenera variety seedlings and biodiverse agroforestry systems. At the processing level, it encourages private-sector investment in a mill and refinery as sector anchors, complemented by advisory services and a training centre (KATIC) to strengthen smallholder capacities. At the governance level, it proposes the establishment of an umbrella cooperative structure to organize farmers, facilitate service provision, manage contractual arrangements, strengthen aggregation, and support value addition and market access. The strategy aims to enhance the competitiveness, inclusiveness and sustainability of the United Republic of Tanzania’s palm oil sector while improving smallholder livelihoods and mobilizing private-sector investment.