Agriculture Services Overview Strategic Sectors Driving Tanzania’s Economic Transformation

Tanzania’s path to industrialization and sustainable economic development is strongly anchored in its natural resources, strategic geographic location, and sectoral potential in agriculture, livestock, fisheries, edible oils, and the blue economy. These sectors are not only critical for employment and food security, but also provide a foundation for value addition, regional trade, and export diversification.

1. Agriculture: Engine of Industrial Growth and Food Security

Agriculture remains central to Tanzania’s economic structure, contributing significantly to both production and consumption sides of the economy.

  • Employment: ~67% of Tanzania’s population is engaged in agriculture.
  • Land Resources: 44 million hectares of arable land, 29.4 million hectares suitable for irrigation.
  • Topography & Climate: Fertile soils, favorable rainfall, and abundant rivers from highland plateaus.

Key Sub-Sectors and Opportunities

Sugarcane

  • Tanzania boasts some of the world’s highest yields at 120 tons/hectare.
  • Current production: ~300,000 tonnes annually.
  • National demand gap: ~220,000 tonnes, increasing at 6% per year.

Edible Oils
Despite strong growth in sunflower seed production, edible oil processing remains low relative to demand.

  • Annual Demand: 570,000 tonnes (projected to reach 700,000 by 2030).
  • Annual Domestic Supply: ~180,000 tonnes.
  • Imports: Over US$83 million in 2018 (sunflower oil imports: 55–70% of domestic consumption).
  • In 2016, the Government of Tanzania (GoT) imposed a 10% tariff on Crude Palm Oil (CPO) imports to stimulate domestic processing.
  • Policy Goals: Reduce dependency on imports through increased production and processing capacity.

Opportunities:

  • Large-scale farming of oilseeds (sunflower, groundnut, soybean, cottonseed, palm).
  • Modern processing and refining facilities.
  • Investment in agro-industrial zones and mechanical extraction technologies.

2. Livestock: A Sleeping Giant of Value Addition and Trade

Tanzania has one of the largest livestock sectors in Africa but remains largely under-commercialized.

  • 2nd largest livestock population in Africa.
  • 60 million hectares of rangelands suitable for grazing.
  • High-quality indigenous breeds and natural vegetation for feed.

Quick Facts

  • Potential: 4 million hides and 6.1 million skins annually.
  • Meat demand forecast: 166% increase by 2030 (from 290M to 480M tonnes).
  • <1% of meat is processed domestically—massive import substitution opportunity.

Strategic Advantages

  • Geographic Hub: Links East and Southern Africa and interior countries to the coast.
  • Rising Demand: Growing regional and global demand due to population growth and urbanization.

Investment Opportunities

  • Joint ventures with National Ranching Company (NARCO) and private ranches.
  • Establishment of new ranches (cattle, sheep, goats), poultry, piggery farms.
  • Modern slaughterhouses, meat processing, and cold chain infrastructure.
  • Production of animal feed, dairy processing, leather goods, tanneries, and breeder farms.

3. Fisheries & Aquaculture: Untapped Potential in the Blue Economy

Tanzania is a top fishing nation in Africa, leveraging extensive marine and freshwater resources.

Natural Resources

  • Freshwater bodies: 54,337 sq. km (6.1% of national surface).
  • Coastline: 1,424 km along the Indian Ocean.
  • Exclusive Economic Zone (EEZ): 223,000 sq. km.
  • Shared lakes: Victoria, Tanganyika, Nyasa.

Quick Stats

  • Annual production: ~341,000 tonnes of fish.
  • 1.4% contribution to GDP; 10% of national foreign exchange.
  • 177,000 full-time fishermen; ~4 million people depend on the sector.

Opportunities

  • Deep-sea fishing and fish ports (EEZ-focused).
  • Commercial cage farming (marine & freshwater): tilapia, catfish, trout, mud crabs, oysters, prawns.
  • Fish processing, cold chain logistics, boat building, gear manufacturing.
  • Shrimp farming (~3,000 ha available in Mafia Island).
  • Ornamental fish and aquaculture feed production.

4. Edible Oil Sector: Import Substitution and Industrial Scaling

The edible oil sector is a strategic priority for the GoT due to the heavy reliance on imports.

Current Market Status

  • Annual demand: 570,000 tonnes.
  • Domestic supply: ~180,000 tonnes.
  • Imports: 60% of total edible oil, particularly palm and sunflower oils.

Government Initiatives

  • 10% tariff on Crude Palm Oil to encourage local processing.
  • Policy reviews underway to inform future investment strategies.

Investment Opportunities

  • Large-scale oilseed farming.
  • Processing and refining plants.
  • Supply chain development and agro-processing clusters.

5. Cotton and Textile

Opportunities for Tanzania in the Global Textile Industry

The global textile industry has historically played a significant role in driving economic development, offering countries an avenue for rapid job creation and industrial growth. As wages continue to rise in traditional textile-producing countries, millions of labour-intensive manufacturing jobs are expected to shift elsewhere. This trend opens a short-term but valuable window of opportunity for developing nations like Tanzania to attract foreign investment, transfer technology, and expand employment in the textile sector.

Key Global Trends:

  • Rising wages in established textile economies are making production less competitive.
  • Global investors are seeking new destinations with lower labour costs and supportive business environments.
  • Increasing emphasis on ethical and sustainable production practices is influencing sourcing decisions.

Tanzania’s Strategic Advantage:

Tanzania is well-positioned to benefit from this shift due to its:

  • Competitive labour costs and growing interest in industrialization.
  • Large base of cotton production: Over 500,000 smallholder farmers are engaged in cotton farming, especially in some of the country’s poorest and least fertile regions.
  • Untapped value addition potential: Currently, 80% of Tanzania’s cotton is exported in raw form, indicating significant room for domestic processing and job creation.

Sector Snapshot:

  • Seed cotton yield (5-year average): 283,600 metric tons.
  • Cotton farming provides critical livelihoods in rural areas and holds poverty-reduction potential.
  • Limited local value addition means missed economic opportunities.

Opportunity for Sustainable Growth:

With rising global demand for responsibly produced textiles, Tanzania could position itself as a sustainable and ethical sourcing destination. This would not only attract long-term investment but also ensure job quality and environmental standards.

Conclusion:

Tanzania has a rare chance to transform its cotton sector into a driver of inclusive economic growth. By focusing on value addition, sustainability, and investment in textile manufacturing, the country could generate hundreds of thousands of decent jobs while lifting rural communities out of poverty. However, this opportunity is time-sensitive and requires strategic policy support, infrastructure development, and investment in skills and technology.

6. Blue Economy: Driving Sustainable Ocean-Based Growth

Tanzania, particularly Zanzibar, is championing a comprehensive Blue Economy Policy (2024), positioning the sector as a key development pillar.

Key Areas of Focus

  • Fisheries and Aquaculture:
    • Expansion of deep-sea fishing with licensed vessels.
    • Development of fish processing plants, especially for tourism and export.
    • Seaweed farming: Zanzibar is a global exporter with opportunities in value-added products (cosmetics, food, fertilizers).
    • Aquaculture species: tilapia, catfish, mud crabs, oysters, scallops.
  • Tourism and Recreation:
    • Investment in marine tourism (beach resorts, marinas, water sports).
    • Growth of eco-tourism and community-based conservation.
  • Maritime Trade and Infrastructure:
    • Expansion and modernization of ports in Dar es Salaam, Tanga, and Mtwara.
    • Support industries: boat building, net making, marine engine repairs.
  • Energy:
    • Development of offshore oil and gas (regulatory frameworks underway).
    • Promotion of renewable energy (wind and wave power).

Governance and Policy Framework

  • National Blue Economy Policy (2024) and Zanzibar Blue Economy Policy (2022).
  • Multi-stakeholder collaboration (government, private sector, civil society).
  • International partnerships (e.g., $2.5 billion loan from South Korea).

Challenges

  • Illegal, unreported, and unregulated (IUU) fishing.
  • Environmental degradation and climate impacts.
  • Fragmented governance and infrastructure gaps.
  • Limited research and innovation.
  • Community empowerment: Ensuring inclusive economic benefits.

7. Seed Sector

Overview of the Seed Sector in Tanzania

1. Importance of Seed Sector

The seed sector is critical in Tanzania as it provides quality seeds that directly affect agricultural productivity and food security. Access to improved, certified seeds helps farmers increase yields, adapt to climate change, and improve resilience against pests and diseases.

2. Types of Seeds in Tanzania

  • Certified Seeds: These are seeds that meet set quality standards and are produced through regulated systems. They include both hybrid and open-pollinated varieties.
  • Improved Seeds: Developed through breeding programs to enhance yield, disease resistance, drought tolerance, and nutritional value.
  • Farm-saved Seeds: Seeds saved by farmers from their previous harvest, commonly used but generally lower in quality and consistency.

3. Seed Production and Supply Chain

  • Seed Production: Tanzania has both public and private sector seed producers. The Tanzania Official Seed Certification Institute (TOSCI) oversees seed certification and quality assurance.
  • Distribution: Seeds are distributed through agro-dealers, government programs, NGOs, and farmer organizations. Accessibility varies, especially in remote rural areas.
  • Seed Varieties: Common crops with improved seed varieties include maize, rice, beans, sunflower, sorghum, and millet.

4. Regulatory Framework

  • The seed sector is regulated mainly by the Seed Act and overseen by TOSCI, which handles seed certification, quality control, and variety release.
  • The government promotes use of certified seeds through subsidy programs and extension services.
  • Efforts are underway to streamline regulations to encourage private sector participation and improve seed availability.

5. Challenges

  • Limited Production Capacity: Seed production volumes are insufficient to meet the national demand.
  • Quality Issues: Some seeds in the market do not meet certification standards, leading to poor crop performance.
  • Access and Affordability: Many smallholder farmers have difficulty accessing certified seeds due to cost, availability, and distribution challenges.
  • Limited Awareness: Farmers sometimes lack knowledge about the benefits of improved seeds and proper seed management.
  • Climate Change: Changing weather patterns affect seed production cycles and seed quality.

6. Opportunities

  • Expansion of Private Sector Participation: Increasing involvement of private companies in seed production and marketing.
  • Research and Breeding Programs: Continued development of improved varieties suited to local conditions.
  • Seed Subsidy and Support Programs: Government initiatives to increase uptake of certified seeds among smallholders.
  • Regional Seed Trade: Tanzania’s location offers potential as a regional seed supplier to neighboring countries.
  • Use of Technology: Mobile platforms and digital tools to improve seed access, information, and traceability.

8. Fertilize Sector

Current Status & Key Developments

  1. Domestic Production Growth
    • Local fertilizer production in Tanzania rose significantly: from ~84,696 metric tons in 2022/23 to ~158,628 metric tons in 2023/24. IPP Media
    • This increase comes from expansion of blending and manufacturing facilities. IPP Media
    • A major new plant, ITRACOM Fertilizers in Nala, Dodoma, was launched with a capacity of 1 million tonnes per year. millingmea.com+1
  2. Import Dependence & Demand
    • Despite increasing local production, Tanzania still relies heavily on fertilizer imports. In many reports, more than 85‑90% of fertilizer used is imported. Kilimokwanza+2IPP Media+2
    • Demand for fertilizers (various types/blends) has been increasing: e.g. usage rose from ~698,260 metric tons in 2021/22 to ~848,884 metric tons in 2023/24. IPP Media
  3. Subsidies and Government Support
    • The Tanzanian government has been running fertilizer subsidy programmes aimed at reducing cost for farmers. Afriqom+2millingmea.com+2
    • In some budget allocations, funds have been set aside to subsidize fertilizer, particularly for smallholder farmers. The Citizen+1
  4. Regulation and Institutional Setup
    • The Tanzania Fertilizer Regulatory Authority (TFRA) regulates fertilizer quality, imports, blending, safety, etc. Kilimokwanza+1
    • There are ongoing baseline studies and audits (e.g. “Baseline Study on Fertilizers in Tanzania 2023”) to understand use, supply chain, access, affordability. Kilimokwanza
  5. Supply Chain & Accessibility
    • Distribution networks are being expanded (warehouses, zonal sales centres by the Tanzania Fertilizer Company (TFC)). businessinsider.co.tz
    • There are many agro‑dealers, but in rural or remote areas access is weaker. Transportation and logistic costs also make fertilizers more expensive. Afriqom+1

Challenges & Constraints

  1. Low Application Rates
    • Average application/usage is well below targets. For example, fertilizer usage is about 19‑24 kg per hectare, compared to the Abuja Declaration target of ~50 kg/ha. Kilimokwanza+2Doing Business Tanzania+2
  2. High Cost / Affordability
    • Prices are affected by import costs, foreign exchange fluctuations, transport, taxes, etc. These costs make fertilizer less affordable for many smallholder farmers. Kilimokwanza+1
    • Subsidy arrears: the government has sometimes delayed payments to fertilizer suppliers providing under subsidy programs, which strains supply chains. Afriqom
  3. Distribution Inefficiencies
    • Rural areas often have fewer agro‑dealers, poor storage infrastructure, higher transport costs, and less timely supply. Kilimokwanza
    • Logistical challenges (roads, warehousing, etc.) increase costs and sometimes reduce quality.
  4. Dependence on Imports / Vulnerability
    • Though new factories are coming up, the sector is still heavily reliant on imported raw materials or fully imported fertilizer blends. This creates exposure to global market shocks, price volatility, shipping delays etc. IPP Media+2Doing Business Tanzania+2
  5. Awareness, Knowledge & Use Efficiency
    • Farmers often lack detailed knowledge of soil fertility, of which fertilizers (blend, nutrient) are most suited, timing of application, correct dosages. Misuse or underuse limits the benefits. Kilimokwanza
  6. Regulatory & Financial Risks
    • Financing constraints for importers, blending/commercial firms; subsidy programs impose fiscal burden. Afriqom
    • Ensuring product quality, avoiding counter‑feits or low‑quality blends remains an issue.

Outlook & Opportunities

  1. Increasing Domestic Production
    • With the ITRACOM plant operational and more blending/manufacturing facilities coming online, Tanzania is aiming to reduce its dependence on imports. millingmea.com+2Kilimokwanza+2
    • There are proposals (or signed deals) to build additional fertilizer plants, including some using natural gas. millingmea.com+1
  2. Targets & Planned Uptake Increases
    • The government has set targets to increase fertilizer uptake (usage) significantly. For example, usage goals of ~800,000 tonnes by certain future seasons. The Citizen+1
    • Also regulatory and budget frameworks are being adjusted to support higher distribution, more subsidy, expanded blending tailored to local soil/crops.
  3. Improved Access via Finance, Subsidy Mechanisms
    • Trade credit guarantees (e.g. from African Development Bank) to help suppliers provide fertilizer to smallholders on credit. African Development Bank Group
    • Strengthening of subsidy programs, with better targeting, and efforts to reduce leakages and delays.
  4. Tailored Blends & Soil Diagnostics
    • Growing recognition of need for fertilizer blends suited to local soils & crop needs, rather than one‑size‑fits‑all.
    • Expansion of local blending facilities so that fertilizers can be customized and possibly cheaper (less transport cost).
  5. Potential for Export / Regional Hub
    • With increased domestic capacity, especially with large plants, Tanzania could become a net exporter of fertilizer (or at least of certain blends) to neighbouring countries. millingmea.com+1
  6. Policy & Institutional Strengthening
    • Continued improvements in regulation, quality control, reducing import/export barriers, improving subsidy administration.
    • Infrastructure investments — roads, storage, agro‑dealer networks — to reduce cost and improve access.

9. In Organic Fertiliser Sector

Organic fertilizer means fertilizers derived from natural sources (animal manure, compost, plant residues, seaweed, etc.) or blended organo‑mineral products with low synthetic content. They aim to improve soil health, supply nutrients, improve moisture retention, reduce environmental externalities of purely synthetic fertilizers, and support organic farming / ecological agriculture.

The sector is important for Tanzania because of:

  • growing interest in organic agriculture both for domestic consumers and export markets (fruits, spices, etc.) IPP Media+2kilimotrust.org+2
  • environmental sustainability, soil health, and climate resilience concerns IPP Media+2FAOHome+2
  • reducing dependency on imported synthetic fertilizers (which have cost, supply chain, foreign exchange risks) The Chanzo Inititative+1

Current Status & Key Players

Here are what’s happening now in Tanzania:

FeatureDetail
Major producers / brandsGuavay Company Ltd. with its “Hakika” organic fertilizer is a primary example. They produce blends (pure organic and/or organic + mineral) and target crops like avocado, onion, rice. Africa Press Arabic+3hakikafertilizer.co.tz+3kilimotrust.org+3
Scale of productionGuavay, through some projects, has scaled to ~1,500 metric tons/year in certain regions for specific crops (avocado, etc.) via partnerships. kilimotrust.org
Also, Guavay currently produces about 3,500 tonnes/year of its chemical‑free fertilizer (with plans to scale toward 20,000 t/yr) for organic farmers. Africa Press Arabic
Innovative raw materialsSome organic projects are using seaweed (e.g. Zanzibar’s Coastal Biotech teamed with TFA) to make organic fertilizer. millingmea.com
Using animal wastes etc. in production is also part of newer facilities under planning/feasibility (e.g. Rokosan facility) Africa Press Arabic+1
Regulation & StrategiesTanzania has drafted / begun implementing a National Ecological Organic Agriculture Strategy to promote organic agriculture, including use of biological inputs, certification, market development. FAOHome+1
The Tanzania National Agriculture Policy (2013) already contains clauses supporting organic inputs and organic product accreditation. eoai-africa.org+1
The Tanzania Fertilizer Regulatory Authority (TFRA) also regulates organic/mineral‑organic fertilizers and inputs, ensuring quality standards. membership.ate.or.tz+2IPP Media+2
Market growth prospectsThe organic fertilizer market is projected to grow, with a forecasted growth rate around 11.35% by 2027, driven by increasing awareness, product innovation, more distribution, and government supports. 6Wresearch

Strengths

  • Local raw materials availability: There’s agricultural residues, manure, seaweed (especially Zanzibar), compostable biomass, etc. These provide input for organic fertilizer producers. millingmea.com+2kilimotrust.org+2
  • Growing awareness & demand: Among farmers, export markets, NGOs, organic certification bodies. Organic produce often fetches premium prices in export markets. IPP Media+2kilimotrust.org+2
  • Regulatory & policy support: With the new organic/ecological agriculture strategy, and existing policies recognizing organic farming, there is an enabling environment more so than before. FAOHome+2eoai-africa.org+2
  • Innovative & small/medium scale players: SMEs like Guavay are demonstrating feasibilities, building networks of agro‑dealers, targeting specific value chains (e.g. avocado) with organic fertilizers. Projects with donor / NGO support (e.g. Kilimo Trust) help scale capacity, knowledge, demonstration plots. kilimotrust.org

Key Challenges

  • Scale and production capacity: Organic fertilizer producers are often small or limited in capacity. E.g. Guavay’s production is still modest compared to national fertilizer needs. Many organic producers produce only thousands of tonnes/year, far below what synthetic fertilizer producers or demand require. kilimotrust.org+2Africa Press Arabic+2
  • Cost and affordability: Organic fertilizers tend to be more expensive (or perceived to be) in terms of price per unit of nutrient vs chemical fertilizers. This limits uptake by low‑income/smallholder farmers. Also costs of production (collection/transport of raw materials, processing, certification) can be high. 6Wresearch+1
  • Awareness, knowledge, extension: Many farmers are not fully aware of how to properly use organic fertilizers (rates, timing, blending, matching with crops), or of their long‑term benefits. Also organic seeds or inputs are scarce. IPP Media+1
  • Quality, certification & standards: Ensuring organic fertilizers meet standards; for export markets, certification of organic produce requires input traceability, often expensive. Also, consistency in product quality is a challenge. IPP Media
  • Supply chain & distribution: Getting organic fertilizers to remote areas, ensuring timely delivery, preserving quality, storage, managing seasonality of demand. Much distribution infrastructure is built around conventional fertilizers.
  • Policy and institutional gaps: Although policies exist or are being drafted, full implementation, regulation, subsidies, or incentives specifically geared to organic sector are still weaker compared to conventional fertilizer sector. E.g. organic input seeds, organic input regulatory frameworks less developed. eoai-africa.org+1

Opportunities & Outlook

  • There is significant potential for scaling up organic fertilizer use especially in horticulture, export crops, niche markets, organic certification markets. Farmers producing organic high‑value crops (avocado, vanilla, spices, etc.) can benefit. Guavay is already working with avocado producers. kilimotrust.org+2Africa Press Arabic+2
  • Use of non‑traditional raw materials (seaweed, animal by‑products, plant residues) and processing innovations can lower production costs and make organic fertilizers more accessible. The seaweed fertilizer project is one example. millingmea.com
  • With government strategies (like the National Ecological Organic Agriculture Strategy) coming into effect, there could be policy incentives, improved regulatory frameworks, subsidies or financial supports for organic fertilizer producers. Kilimo+1
  • Growth of organic markets both domestically and export, and rising consumer awareness of health, soil health and sustainability, can drive demand. IPP Media+1
  • Collaboration between SMEs, NGOs, research institutions and government (for demonstration, extension, input trials, certification) is key to building farmer confidence and scaling adoption. Some of this is already happening.

10. Agricultural Machines

By “agricultural machines” / mechanization we mean tractors (4‑wheel, 2‑wheel), power tillers, harvesters, planters, threshers, irrigation pumps, other implements, and rental / shared‐service centers etc. These are tools that allow farmers to do land preparation, planting, maintenance, harvesting etc. more efficiently, with less labor and time, and often higher yields.

Current Status & Trends

  1. Growth in Tractor Use & Numbers
    • There has been a rising trend in number of tractors in Tanzania. For instance, small and large tractors in operation have increased between 2019/20 and 2023/24. Kilimo
    • In 2019/2020 there were about 8,883 small tractors in operation; by 2023/24 that had risen to 15,633. Similarly, large tractors rose from about 19,604 to 25,632 in the same period. Kilimo
    • Land area cultivated using mechanical means (tractors) also went up: from about 1.85 million hectares in 2019/20 to 4.35 million hectares in 2023/24. Kilimo
  2. Mechanization Service Centers / Shared Access
    • The number of mechanization hiring / service centres (“mechanization hubs”) has nearly doubled in recent years: from 44 up to about 85 between 2019/20 and 2023/24. These hubs help smallholder farmers access machinery without owning them. Kilimo
    • The government and private sector are promoting schemes where farmers can lease or rent machinery rather than buying outright. For example, the EFTA (Equity for Tanzania) equipment loan scheme. Tanzania Times+1
  3. Policy Support & Government Initiatives
    • Tanzania has a mechanization strategy, including under its broader agricultural transformation plans (e.g. Agenda 10/30), to increase mechanization especially among smallholders. kilimokwanza.org+2kilimokwanza.org+2
    • There are plans to procure many more tractors and power tillers, and to set up additional mechanization service centres. kilimokwanza.org+1
    • Import duties / VAT exemptions or reduced tariffs are being discussed or applied to make machinery and parts cheaper. kilimokwanza.org+1
  4. Research, Training & Appropriate Technologies
    • Institutions like TARI (Tanzania Agricultural Research Institute) are involved in mechanization research, including farm implements, conservation agriculture, machinery adapted to local conditions. Tanzania Revenue Authority+1
    • There are trainings to build skills among farmers, extension officers, and technicians (e.g. for use and maintenance of machines) FAOHome+1
  5. Variation by Region, Crop & Scale
    • Regions with more favorable conditions, or with more commercialized / larger farms, have higher levels of mechanization (tractors used, etc.). Regions like Arusha, Manyara, Mbeya, Kilimanjaro are often cited. ResearchGate+2Tractors for Sale in Tanzania -+2
    • Small‑scale machinery (2‑wheel tractors, power tillers) are more likely used/in demand in areas where farm sizes are smaller, terrain more difficult, or capital more constrained. Tractors for Sale in Tanzania -+1

Strengths & Opportunities

  • Policy Momentum & Government Commitment: The government is clearly pushing mechanization as a strategy to improve productivity, food security, and agricultural growth. kilimokwanza.org+2Tanzania Times+2
  • Growing Private Sector & Financing Models: Equipment leasing / loan schemes (like EFTA) and partnerships with banks and manufacturing / distributors (e.g. New Holland) are helping reduce barriers to access. thebusinesswiz.co.tz+2Tanzania Times+2
  • Shared Services & Tractor Pools / Mechanization Hubs: These help smallholder farmers who cannot afford their own machinery. Kilimo+1
  • Appropriate Technology R&D: There is work ongoing to adapt machinery and implements to local farming systems (terrain, soil type, small farm sizes) and to build capacity for operation & maintenance. Tanzania Revenue Authority+1
  • Potential for Large Gains: Because a large share of agriculture is still manual (hand hoes, draft animals), even relatively small increases in mechanization can lead to large improvements in productivity, timeliness of operations (e.g. planting, weeding), and ability to scale up. ResearchGate+2IPP Media+2

Challenges & Constraints

  • Cost / Affordability: Tractors and machinery are expensive, and many smallholder farmers struggle to afford either ownership or rental. Even with leasing, down payments, maintenance, fuel, spare parts etc can be burdens.
  • Access Issues: For farmers in remote/less accessible areas, getting access to well‑maintained machinery (and spare parts, service) is harder.
  • Aging Machinery & Maintenance: A significant portion of existing machinery is old, with many units over 15‑25 years old. Maintenance infrastructure, skilled technicians are limited. Tractors for Sale in Tanzania –
  • Scale & Appropriateness: Not all machinery is suited to small farms or the terrain; sometimes large 4‑wheel tractors are inefficient for small plots, or too bulky, too fuel‑hungry etc. Matching scale, implement size, etc., is a challenge.
  • Training & Operator Skill: There is limited availability of well‑trained operators, technicians, extension personnel who understand mechanization, operations, safety, maintenance; this reduces effectiveness and lifespan of machines.
  • Financing / Credit: Though leasing / loan schemes are growing, financing still remains a barrier; collateral requirements, high interest rates, or limited outreach of financial institutions limit uptake.
  • Infrastructure / Fuel / Supply Chains: Good roads to move machinery, reliable fuel, spare parts supply, workshops, and servicing are needed; weaknesses in those increase downtime and cost.
  • Environmental & Sustainability Concerns: Mechanization often increases fuel use; soil compaction, erosion, or other negative environmental impacts if not managed well. Also, water supply can limit benefits in some areas.

Outlook & Priorities

  • The sector is expected to continue growing, especially under national plans like the Agenda 10/30, increasing number of tractors, power tillers, more mechanization hubs, and increased investment in mechanization infrastructure. kilimokwanza.org+2kilimokwanza.org+2
  • Emphasis on appropriate mechanization: machinery and implements suited for smallholder settings, less expensive, more durable, easier to maintain.
  • Better financing mechanisms, leasing, rental, cooperatives, shared ownership, mechanization hubs to spread costs and increase access.
  • Strengthening research and extension/training: for operators, mechanics, farmers so they can use machinery more effectively.
  • Strengthening supply chains for spare parts, maintenance services, and also policies to reduce import duties / taxes to reduce cost of machinery.
  • Potential for more local assembly or component manufacture to reduce costs, improve availability of spare parts.
  • Integration with other interventions: irrigation, seed systems, extension services, disease/pest control, to ensure machinery use translates to productivity gains (not just more machines).

Here are some recent numbers and comparisons for mechanization / agricultural machines in Tanzania, including tractors, power tillers, mechanization hubs, etc., plus a few regional benchmarks.

Key Mechanization Figures for Tanzania

From the latest sources (especially the 2023/24 Agriculture Annual Report):

Indicator2019/202022/232023/24
Number of small tractors in operation—12,56815,633 Kilimo
Number of large tractors in operation—23,47925,632 Kilimo
Imported small tractors in the year—1,9994,125 Kilimo
Imported large tractors in the year—2,3532,484 Kilimo
Number of mechanization hubs (rental / service centres)447185 Kilimo
Area cultivated by tractors (hectares)~1,852,344~2,907,2174,350,474 Kilimo
Area cultivated by draft animals / oxen~1,998,084~3,003,4834,698,511 Kilimo

Additional items:

  • Agricultural Census 2019/20:
    • ~105,403 agricultural households owned tractors (Mainland Tanzania) nbs.go.tz
    • ~94,814 households owned power tillers in Tanzania (Mainland + Zanzibar) nbs.go.tz
    • ~5.17 million draft animals are used by households nbs.go.tz
    • ~600,438 households used tractors to cultivate ~1,500,654 hectares nbs.go.tz
  • Tractor Coverage / Density:
    The government’s roadmap (Agenda 10/30) shows that in 2023, there were about 1.4 tractors per 1,000 hectares of agricultural land. They plan to raise that to 5 tractors per 1,000 hectares by 2030. kilimokwanza.org

Regional Comparisons & Benchmarks

  • In Sub‑Saharan Africa generally, tractor densities are low: often under 2 tractors per 1,000 hectares of crop land. (Varies greatly by country.) United Nations+1
  • For example, the FAO / studies cited show that Asia (South Asia) and Latin America have much higher densities (often ~9‑10 tractors per 1,000 ha). ResearchGate
  • Tanzania is currently below many more mechanized countries (in both Africa and globally) but is making progress. Its goal of reaching 5 tractors / 1,000 ha by 2030 would represent a substantial improvement.

11. Irrigation Sector

Status & Key Facts

  • Total cultivated land irrigated is modest relative to potential. The 2022/23 Agricultural Sample Survey (AASS) showed about 922,852 hectares under irrigation, which is about 4.6% of planted land. TICGL
  • The government has ambitious targets:
  • There is a large estimated potential for irrigation: about 29.4 million hectares are considered suitable (with varying levels of investment needed) for irrigation development across the country. Arusha News+2kilimokwanza.org+2

Institutional & Policy Environment

  • The National Irrigation Policy (2010) and the National Irrigation Master Plan (NIMP) are central policy documents guiding irrigation development. Trade.gov+2The Citizen+2
  • The National Irrigation Act of 2013 established a formal structure: the National Irrigation Commission (NIRC) is responsible for coordinating, promoting, and regulating irrigation. Tanzanian Affairs+2kilimokwanza.org+2
  • The Irrigation Development Fund (established by law) helps finance projects through grants or loans, especially for smallholders and investors. PreventionWeb

Investments & Infrastructure

  • Budget allocations have increased: for example, in FY 2022/23, the government allocated about TZS 420 billion (≈ USD 181 million) for construction of irrigation infrastructure — a large increase over the previous fiscal year. kilimokwanza.org+1
  • Some irrigation schemes are being modernized; new technologies are being introduced (drip systems, boreholes, reservoirs, improved channels, etc.). allAfrica.com+1
  • Projects include both rehabilitation of existing traditional schemes and creation of new ones. Soko Directory+2Africa Press Arabic+2

Performance & Productivity

  • Using irrigation tends to improve yields significantly. In some rehabilitated or improved schemes, yields for rice, onions, tomatoes etc. have increased markedly compared to rain‑fed plots. Soko Directory+1
  • Traditional smallholder irrigation schemes dominate: many are managed by farmers themselves. Infrastructure varies widely in quality (many open channels, some improvement works, etc.). AGU Publications+1
  • Water source usage is mostly surface water; groundwater usage is very low (only ~0.2% in some estimates). AGU Publications

Challenges

  • Limited coverage: Despite targets, a large share of the suitable land remains unirrigated. Getting from under 1 million hectares to millions will require fast scaling. kilimokwanza.org+2Arusha News+2
  • Infrastructure quality: Many traditional schemes suffer from poor infrastructure, low water use efficiency (leaks, poor channels, inadequate drainage), water logging or salinity in some cases. AGU Publications+2The Conversation+2
  • Financing & maintenance: Some schemes aren’t well maintained; financial constraints limit both initial investment and upkeep. The Irrigation Development Fund is meant to help, but implementation and capacity are issues. PreventionWeb+1
  • Technical capacity & adoption of modern systems: Modern irrigation technologies (drip, sensors, automated systems) are being introduced but uptake among smallholders is still limited due to cost, lack of knowledge, access to technology. allAfrica.com+1
  • Water governance & environmental concerns: Ensuring sustainable water management (rights, allocation, avoiding over‑draw, water pollution, drainage) is a concern. Also climate change increases variability, making water availability less predictable. TNC+1

Recent Trends & Innovations

  • Growing adoption of modern irrigation technologies (drip irrigation, center pivot, reservoirs, sensors) especially through public demonstrations, exhibitions and through NIRC efforts. allAfrica.com+1
  • Emphasis on smallholder schemes, private sector involvement, public‑private partnerships. The Citizen+1
  • Expansion and rehabilitation of irrigation schemes is ongoing; more dams/reservoirs, more boreholes, water harvesting infrastructure being built. kilimokwanza.org

Outlook

  • If targets are met, expansion in irrigated land should significantly reduce the reliance on rainfall, help farmers adopt multiple cropping, stabilize yields, improve food security, reduce vulnerability to droughts.
  • Success will depend on securing sufficient and sustainable financing, improving infrastructure quality and management, building capacity (technical, institutional) at the local level, ensuring equitable access (smallholders, women), and integrating irrigation planning with water resource management and climate adaptation.
  • There is potential for large economic gains: increase in crop volumes, expansions into higher‑value crops, improved incomes, and export opportunities.

12. Farm input

Farm inputs include everything farmers need to grow crops: seeds (especially improved/certified seeds), fertilizers (organic and inorganic), pesticides/plant protection products, sometimes agro‑chemicals, tools, irrigation equipment, etc.

Seeds / Certified Seed

  • Certified/improved seed usage has been growing. Between the 2021/22 and 2023/24 seasons, the amount of certified seed used in Tanzania rose from ~50,750 tonnes to about 72,031.9 tonnes. Tanzania Standard News+2sematv.co.tz+2
  • Local production of certified seed expanded: the area under seed production rose from ~10,674 hectares in 2014/15 to ~99,885 hectares by 2023/24. Tanzania Standard News+1
  • The Agricultural Seed Agency (ASA), a government entity, has been increasing seed production. For example, in 2024/25 ASA produced ~9,303 tonnes for strategic crops, which was a large jump (over 100%) compared to the previous season. Tanzania Standard News
  • But there is still a gap: the estimated demand for improved seed is ~127,650 tonnes per year, but supply is below that. ASA is producing a part, and private sector is expected to fill the rest. Tanzania Standard News+1

Fertilizers

Affordability, Accessibility, Regulation

Strengths & Opportunities

  • Policy attention and investment: The government is emphasizing increased use of inputs (seeds, fertilizers) as part of its agricultural development plans. Tanzania Standard News+2Doing Business Tanzania+2
  • Growing private sector & local producers: More companies are investing in fertilizer blending and seed production; plans for new fertilizer plants (e.g. leveraging natural gas) are underway. The Chanzo Inititative+1
  • Better seed varieties: Research institutions (like TARI) are producing improved, drought‑tolerant, disease‑resistant seeds, which helps farmers cope with climate variation and pests. Tanzania Standard News+1
  • Opportunities in domestic production: Natural resources (e.g. phosphate, natural gas) give potential for more fertilizer manufacture locally, which could reduce costs and dependencies. Doing Business Tanzania+1

Challenges & Constraints

  • Low usage rates per hectare: As mentioned, inputs like fertilizers are under‑applied in many regions, especially those more remote, and usage is much lower than what’s needed to realize good yields. ipipotash.org+2kilimokwanza.org+2
  • Import dependency: Heavy reliance on importing fertilizers exposes farmers to supply disruptions, foreign exchange risk, and price volatility. kilimokwanza.org+2The Chanzo Inititative+2
  • Access & distribution issues: Rural farmers often have trouble accessing good quality inputs due to poor distribution networks, high transport costs, delays, or lack of agro‑dealers. kilimokwanza.org+1
  • Cost barriers: Even with subsidies, the costs of inputs (seed, fertilizer) remain high for many smallholders, especially when credit is unavailable or expensive. kilimokwanza.org+1
  • Information & knowledge gaps: Farmers may not always know which seed varieties are best, how to apply fertilizer properly (type, timing, dose), or risk management of pests etc. This leads to under‑use, misapplication, or low returns. kilimokwanza.org+1

Outlook / What’s Next

  • Tanzania aims to increase fertilizer usage to ~1 million tonnes per growing season in coming years. millingmea.com+1
  • Increasing domestic fertilizer manufacturing (new plants using natural gas, etc.) is part of strategy to reduce import dependency. millingmea.com+1
  • Seed sector development strategy (SSDS) is being developed to push the country toward seed self‑sufficiency by 2030. CGIAR
  • Continued efforts to improve regulatory frameworks, quality control, certification, and increasing the number of registered seed varieties.

13. Extension Services

These are systems and practices through which farmers get knowledge, advice, technologies, and support (e.g. on good agricultural practices, inputs, sustainable methods, pests & disease, post‑harvest, etc.). They bridge the gap between research/institutional/technical knowledge and farmers in the field. 1Library+2AGRA+2

Structure & Stakeholders

  • Public sector (government):
    • The Ministry of Agriculture, through its Agricultural Training, Extension Services & Research Division handles policy, guidelines, coordination, capacity building, monitoring extension work through regional and local government authorities (LGAs). Kilimo+2AGRA+2
    • Local Government Authorities (district, ward, village levels) are responsible for delivering extension on the ground. AGRA+2Tanzania High Commission Abuja+2
  • Private sector & NGOs:
    • NGOs, farmer organisations, agribusinesses, input dealers, etc., also deliver extension services — sometimes to promote their products, sometimes as part of development programs. AGRA+2Tanzania High Commission Abuja+2
    • Private sector involvement is increasing. There are efforts to make models more pluralistic (multiple service providers) rather than relying purely on government. MDPI+1
  • Community‑based / Farmer field schools etc.:
    • Farmer Field Schools (FFS), village‑based advisors/promoters, peer learning among farmers are utilised especially in areas covered by donor or project programmes. Stipro+21Library+2
  • Digital / ICT tools:
    • Recent initiatives like e‑Kilimo, a digital extension system, are being introduced to increase transparency, accountability, and efficiency. It helps farmers see where extension officers are, contact them, monitor their work. Tanzania Standard News+1
    • Integrated Kilimo System: using mobile technology for information, crops markets, advisory services etc. Integrated Kilimo System

What is working / Strengths

  • The decentralization of extension services gives LGAs more authority to deliver services closest to farmers. AGRA+1
  • Support for capacity building: training of extension officers, development of curricula, strengthening farming practices. Kilimo+1
  • Increasing budget and political commitment recently: e.g. government allocating more money for extension centres, increasing number of officers. Tanzania Standard News+1
  • Pro‑farmer innovations like FFS, peer learning, involvement of local farmer organizations help tailor services to actual farmer needs. 1Library+1

Challenges / Weaknesses

  • Low coverage: Many farmers, especially in remote or poorer regions, have limited or no access to extension services. Only a small percentage of farming households are reached regularly. MDPI+1
  • Shortage of extension staff / capacity:
    • The number of extension officers is often below what’s needed. Tanzania Standard News+2Kilimo+2
    • Logistics issues: lack of transport, poor mobility (to reach widespread farmers), lack of equipment or tools. Kilimo+1
  • Funding & sustainability:
    • Heavy reliance on donor funding or project funding, which is often time‑limited. When projects end, so do enhanced services. AGRA+1
    • Public funding for extension has historically been small compared to what’s needed. AGRA+1
  • Quality & relevance issues:
    • Sometimes the content of extension is not well adapted to the actual contexts (language, agroecological conditions, farmer literacy, preferences). 1Library+1
    • Poor linkages between research institutions and extension agents/farmers, so research output doesn’t always reach the field or be usable. 1Library+1
  • Regulation, oversight & accountability:
    • Before recent changes, extension officers may have weak accountability; performance monitoring is weak. African Farming+1

Recent & Emerging Changes

  • e‑Kilimo (digital extension): Introduced in mid‑2025 to digitalise extension service delivery. Farmers can check which extension officers serve their area, how to contact them; extension agents fill performance reports. Aim is greater transparency and better accountability. Tanzania Standard News+1
  • Increased budget & centres: Government committed to establishing many new extension service centres (e.g. 1,000 centres). Also increased budget for extension services. Tanzania Standard News
  • Use of technology: Tablets given to extension officers to monitor their work; mobile platforms to connect farmers and extensionagents; improved data collection. Africa Press Arabic+1
  • Policy reforms and strategic plans: Including Agricultural Sector Development Program II (ASDP II), which pushes for pluralistic extension, more private sector participation, better quality and reach. MDPI+1

Why it matters

  • Productivity & food security: Better extension services can raise yields (by promoting improved seed, better pest management, soil management etc.), helping meet food demand.
  • Adoption of improved / climate‑smart practices: With climate change, pests, variable weather, farmers need timely, accurate information.
  • Economic welfare: Helping farmers reduce losses, improve marketing, access inputs etc., contributes to incomes.
  • Sustainable agriculture: Good extension helps promote resource conservation, proper use of inputs, environmental protection.

Key Gaps / What needs to improve

  • Scaling up coverage into remote/rural areas so more farmers are reached.
  • Ensuring adequate extension officer staffing, tools, transport, supervision.
  • Sustainable financing models — less dependency on donor funding, more cost‑sharing, private sector involvement.
  • Quality of services: more relevant, locally adapted messages; better linkages with research; more farmer participation.
  • Better monitoring, evaluation, and accountability of extension services.

14. Agro-processing and Value Chain

Tanzania’s agro-processing and value chain sector is pivotal to its economic transformation, aiming to enhance agricultural productivity, create employment, and increase industrial output. Here’s an overview of the current landscape:

Agro-Processing in Tanzania

  • Sector Significance: Agro-processing is a leading manufacturing sector in Tanzania, accounting for 55% of manufacturing value added and 65% of manufacturing employment. sdf.tea.or.tz
  • Key Commodities: The country processes a variety of agricultural products, including cashew nuts, fruits, vegetables, and dairy. However, a significant portion of these raw materials is still exported unprocessed. Trade.gov
  • Infrastructure Initiatives: Efforts are underway to develop agro-industrial parks and corridors, integrating high-productivity farming with processing centers to boost productivity and economic value. Kilimokwanza

Value Chain Development

  • Strategic Framework: The Tanzania Agro-Industries Development Flagship (TAIDF) aims to increase the manufacturing sector’s contribution to GDP from 8.1% to 17.8% by 2025, create 1 million jobs, and enhance agro-processing’s share of GDP to 12%. Kilimokwanza
  • Smallholder Integration: Programs focus on linking smallholder farmers to value chains through improved infrastructure, capacity building, and access to markets. Taha
  • Export Potential: There’s a growing emphasis on processing for export markets, particularly in horticulture, to meet international standards and increase foreign exchange earnings. sdf.tea.or.tz

Challenges

  • Infrastructure Gaps: Limited access to modern processing facilities and storage solutions hampers efficiency and product quality.
  • Financing Constraints: Access to affordable credit remains a barrier for small and medium enterprises (SMEs) in the agro-processing sector.
  • Market Access: Smallholder farmers often face challenges in accessing both local and international markets due to inadequate logistics and market information.

Future Outlook

With ongoing investments in infrastructure, policy support, and private sector engagement, Tanzania’s agro-processing and value chain sector is poised for significant growth. The focus on value addition, export diversification, and inclusive development is expected to transform agriculture into a key driver of industrialization and economic development.

15. Food Services

Tanzania’s food services industry is experiencing dynamic growth, driven by urbanization, a burgeoning middle class, and increasing demand for convenience and quality dining experiences. Here’s an overview of the sector:

Market Overview

  • Projected Revenue: The food market in Tanzania is expected to generate approximately US$133.08 million in 2025, with a compound annual growth rate (CAGR) of 11.10% from 2025 to 2030 Statista.
  • Online Food Delivery: The online food delivery market is projected to reach €92.79 million by 2025, with a CAGR of 15.53% from 2025 to 2028 Statista.
  • Restaurant Delivery: Revenue in the restaurant delivery market is expected to reach US$6.02 million in 2025, growing at a CAGR of 8.15% from 2025 to 2030 Statista.

Key Segments

1. Restaurants and Cafés

  • International Chains: Global brands like KFC and Pizza Hut have expanded in Dar es Salaam, indicating a growing appetite for international dining options.
  • Local Establishments: Traditional eateries and fast-food outlets remain popular, especially in urban centers like Kariakoo and Posta, offering affordable and quick meal options.

2. Catering Services

  • Corporate and Institutional Catering: Companies like AKO Group provide large-scale catering services, delivering up to 85,000 meals daily. They emphasize food safety with ISO 22000:2018 certification Akogroup+1.
  • Event Catering: Catering for weddings, conferences, and other events is a significant part of the sector, with numerous suppliers operating across the country Rentech Digital.

3. Online Food Delivery

  • Growth Drivers: Increasing smartphone penetration and urbanization are fueling the demand for online food delivery services.
  • Market Potential: The sector is expected to continue its upward trajectory, with significant investments in technology and logistics to meet consumer expectations.

Industry Trends

  • Digital Transformation: There’s a shift towards online ordering platforms and mobile apps, enhancing customer convenience and expanding market reach.
  • Health and Wellness: Consumers are increasingly seeking healthier meal options, prompting food service providers to diversify their menus to include nutritious choices.
  • Sustainability Practices: There’s a growing emphasis on sustainable sourcing and waste reduction, aligning with global trends towards environmental responsibility.

Challenges

  • Infrastructure Limitations: Inadequate logistics and cold chain facilities can impact the quality and timely delivery of food services.
  • Regulatory Hurdles: Navigating local regulations and obtaining necessary certifications can be complex for new entrants.
  • Competition: The market is becoming increasingly competitive, with numerous players vying for consumer attention and loyalty.

Outlook

The food services industry in Tanzania is poised for continued growth, driven by evolving consumer preferences and technological advancements. Opportunities exist for both local entrepreneurs and international investors to tap into this expanding market.

16. Sugar Sector

Tanzania’s sugar industry is a cornerstone of its agricultural sector, with significant strides toward self-sufficiency and modernization.

Overview of the Sugar Industry

  • Annual Production: Approximately 460,000 metric tonnes of sugar are produced, meeting about 58% of domestic consumption. Trade.gov
  • Demand: The national demand stands at approximately 807,000 metric tonnes, with 552,000 tonnes for domestic consumption and 255,000 tonnes for industrial use. Tanzania Standard News
  • Import Dependency: The shortfall is met through imports, primarily from Brazil and India, amounting to about 42% of the total demand. Trade.gov

Key Sugar Factories

  • Major Producers: The industry comprises seven main sugar factories:
    • Kilombero Sugar Company
    • Mtibwa Sugar
    • Mkulazi Sugar
    • Kagera Sugar
    • TPC Moshi
    • Bagamoyo Sugar
    • Manyara Sugar
  • Employment: These factories directly employ about 34,200 workers and support nearly 200,000 indirect jobs. The Citizen

Recent Developments

  • Production Growth: Sugarcane production increased from 311,358 tonnes in 2020 to a record high of 460,049 tonnes in 2023, though it declined to 395,293 tonnes in 2024 due to adverse weather conditions. The Citizen
  • Factory Upgrades: Upgrades at Mtibwa and Kagera Sugar factories have added 3,092 tonnes to national output. Food Business MEA
  • Seedling Initiatives: The Tanzania Agricultural Research Institute (TARI) launched a project to distribute 600 tonnes of high-yielding, disease-resistant, and drought-tolerant sugarcane seed varieties to farmers. Food Business Africa

Challenges

  • Seedling Shortage: There is a significant shortage of quality sugarcane seedlings, with about 90% imported from countries like Mauritius, Malawi, and South Africa. Tanzania Standard News
  • Infrastructure Issues: Many local industries lack modern machinery, affecting production efficiency. Tanzania Standard News
  • Supply Chain Constraints: The industry faces challenges related to the procurement and distribution of raw materials and finished products.

Strategic Goals

  • Self-Sufficiency Target: The government aims to achieve sugar self-sufficiency by 2027 through increased production and reduced import reliance. The Citizen
  • Investment in Infrastructure: Plans include expanding factory capacities and modernizing equipment to enhance production capabilities.
  • Support for Smallholder Farmers: Initiatives to provide training, resources, and access to quality seedlings aim to empower small-scale sugarcane farmers.

Tanzania’s sugar industry is on a transformative path, with concerted efforts to address challenges and capitalize on opportunities for growth and self-sufficiency.

17. Wheat

Tanzania’s wheat sector is a focal point of agricultural development, aiming to reduce import dependency and enhance food security. Despite significant strides, challenges persist in achieving self-sufficiency.

Current Wheat Production and Consumption

Government Initiatives and Growth Targets

  • Expansion Plans: Increase wheat cultivation area from 100,000 hectares to 400,000 hectares. Doing Business Tanzania
  • Production Goals: Achieve 1 million metric tonnes of domestic production by 2025. Trade.gov
  • Investment: Allocate over $66 million for research and development, including the distribution of 55,000 tonnes of improved wheat seeds. Trade.gov

Research and Development

  • Institutions Involved: Tanzania Agricultural Research Institute (TARI) and other research bodies.
  • Focus Areas:
    • Development of high-yielding, drought-resistant wheat varieties.
    • Training farmers in Good Agricultural Practices (GAP).
    • Introduction of modern farming technologies.

Wheat Milling Industry

  • Capacity: Approximately 10,000 metric tonnes per day. agflow.com
  • Location: Concentrated in urban areas like Dar es Salaam, Mwanza, and Arusha. Trade.gov
  • Consumption Patterns: Urban areas account for 80% of wheat consumption, driven by products like bread, chapati, and biscuits. Trade.gov

Market Trends and Challenges

  • Rising Demand: Urbanization and increased income levels are boosting wheat product consumption. agflow.com
  • Import Costs: Increased by 16% year-over-year to $385.1 million, despite a decrease in global wheat prices. The Wall Street Journal
  • Climate Risks: Wheat cultivation is susceptible to climate variability, affecting yields.

Future Outlook

With sustained government support, investment in research, and adoption of modern farming practices, Tanzania aims to enhance its wheat production capacity, reduce import dependency, and ensure food security for its growing population.

18. Roots and Tubes

Roots and tubers are vital components of Tanzania’s agricultural landscape, contributing significantly to food security, rural livelihoods, and the national economy. These crops are predominantly cultivated by smallholder farmers and are essential for both subsistence and market-oriented production.

Major Root and Tuber Crops in Tanzania

1. Cassava (Manihot esculenta)

  • Production: Cassava is grown across various agro-ecological zones in Tanzania, including the Lake, Southern, Western, and Eastern Zones. The crop is cultivated by over 1.9 million farmers on approximately 853,015 hectares of land, averaging 0.4 hectares per household. Kilimokwanza
  • Consumption: It plays a crucial role in food security, with an estimated annual domestic demand of dry cassava for food security at approximately 2.2 million tons, equivalent to 6.6 million tons of fresh cassava. Kilimokwanza
  • Research and Development: The Tanzania Agricultural Research Institute (TARI) has released several cassava varieties resistant to major pests and diseases, aiming to enhance productivity and resilience. tari.go.tz

2. Sweet Potato (Ipomoea batata)

  • Production: Tanzania ranks as the fourth-largest producer of sweet potatoes globally, with an annual production of approximately 4.26 million tonnes in 2022. Helgi Library
  • Consumption: Sweet potatoes are primarily consumed fresh, with common preparations including boiling, roasting, and incorporation into traditional dishes. However, average yields remain low, estimated at 5.5 tons per hectare. IPP Media

3. Yams (Dioscorea species)

  • Production: Yams are cultivated in various regions, though specific national production figures are less documented. They are an important food source in many communities.
  • Consumption: Yams are consumed in various forms, including boiled, fried, and as an ingredient in traditional dishes.

4. Taro (Cocoyam)

  • Production: Taro is grown in specific regions, though detailed national production data is limited.
  • Consumption: Taro is consumed in various forms, including boiled and as an ingredient in traditional dishes.

Production Trends and Challenges

  • Harvested Area: In 2022, the total area harvested for root and tuber production in Tanzania was approximately 1.1 million hectares, a significant decrease from 2.1 million hectares in 2017. IndexBox
  • Yield Improvements: Despite the reduction in harvested area, average yields increased to 9.5 tons per hectare in 2022, marking a 46% rise from the previous year. IndexBox

Challenges:

  • Pests and Diseases: Cassava Mosaic Disease (CMD) and Cassava Brown Streak Disease (CBSD) are significant threats to cassava production. Efforts are underway to develop and disseminate resistant varieties.
  • Climate Change: Variability in rainfall patterns affects tuber growth and yields.
  • Market Access: Limited infrastructure and market linkages hinder the commercialization of root and tuber crops.

Regional Significance

  • Lake Zone: Regions like Mwanza, Geita, Mara, Kagera, Simiyu, and Shinyanga are major cassava producers.
  • Southern Zone: Lindi, Mtwara, and Ruvuma regions are significant for both cassava and sweet potato cultivation.
  • Eastern Zone: Morogoro, Tanga, and Coast regions contribute notably to sweet potato production.

Future Outlook

The National Cassava Development Strategy (NCDS) 2020–2030 outlines plans to enhance cassava production through improved varieties, better agronomic practices, and expanded processing capabilities. Kilimokwanza With continued research, infrastructure development, and support for smallholder farmers, Tanzania aims to bolster the productivity and marketability of its root and tuber crops, ensuring food security and economic growth.

19. Cereal and Grain

Tanzania’s cereal and grain sector is a cornerstone of its agriculture, vital for food security, rural livelihoods, and economic stability. The country has made significant strides in boosting production, though challenges like climate variability and infrastructure gaps persist.

Key Cereal and Grain Crops

1. Maize (Corn)

  • Dominant Staple: Maize is the most widely cultivated and consumed cereal in Tanzania, providing over 45% of daily caloric intake. scotts-international.com
  • Production Surge: In the 2024/25 season, maize output nearly doubled to 12.26 million tonnes, up from 6.4 million tonnes in 2023/24. Tanzania Standard News
  • Regional Strengths: Major producing areas include the Southern Highlands (Iringa, Morogoro, Ruvuma), Northern Highlands (Tanga, Arusha), and Lake Zone (Kagera). scotts-international.com

2. Rice

  • Growing Importance: Rice production increased to 3 million tonnes in 2024/25, up from 1.77 million tonnes the previous season, marking a 72% rise. Tanzania Standard News
  • Key Regions: The Southern Highlands, including Mbeya and Rukwa, are central to rice cultivation.

3. Sorghum & Millet

  • Drought-Resilient Crops: Sorghum and millet are crucial in arid and semi-arid regions like Dodoma and Singida. In 2023, sorghum production reached approximately 738,000 metric tons. millingmea.com
  • Utilization: These grains are used for human consumption (e.g., porridge), animal feed, and brewing.

4. Wheat

  • Import Dependency: Tanzania imports about 90% of its wheat, primarily from Russia and Ukraine. In 2024, wheat import costs rose by 16% year-over-year to $385.1 million. The Wall Street Journal
  • Domestic Production: Local wheat production is expanding, with output projected to more than double to 150,000 tonnes in 2024.

Market Trends & Outlook

  • Market Growth: The grains market in Tanzania is estimated at USD 7.47 million in 2025 and is expected to reach USD 8.75 million by 2030, growing at a CAGR of 3.21%. Mordor Intelligence
  • Policy Support: Government initiatives, such as seed subsidies and partnerships with research institutions, have contributed to increased production.
  • Infrastructure Challenges: Despite growth, issues like inadequate storage facilities and limited access to irrigation remain obstacles.

Sustainability & Innovation

  • Sustainable Practices: The System of Rice Intensification (SRI) is being adopted in the Southern Highlands to enhance yields with less water and land. Reddit
  • Agro-Tech Communities: Online platforms like r/tanzania are fostering discussions on agro-tech innovations and sustainable farming practices.

20. Horticultural Sector

Tanzania’s horticultural sector has emerged as a pivotal component of the nation’s agricultural landscape, demonstrating significant growth and potential for further development.

Sector Overview

The horticulture industry in Tanzania encompasses a diverse range of crops, including vegetables, fruits, and spices. In the 2022/2023 production year, the sector achieved a remarkable output of 8.43 million tonnes, up from 7.9 million tonnes in the previous year, marking an annual growth rate of approximately 6.8% Gepc.

Export Performance

Horticultural exports have experienced a significant surge, with the value increasing from $290.1 million in 2022 to $417.7 million in 2023, reflecting a 43.9% growth. This rebound follows a downturn during the COVID-19 pandemic, where export values had declined from $384.9 million in 2021 to $290.1 million in 2022 The Citizen.

Key export commodities include avocados, with exports rising from 17,711 metric tonnes valued at $51 million in 2021 to 26,826 metric tonnes valued at $77 million in 2023. This growth is attributed to proactive policies aimed at unlocking global markets for Tanzanian produce dailynews.co.tz.

Strategic Goals

Looking ahead, Tanzania aims to bolster its horticultural sector by targeting $2 billion in export earnings by 2030. This ambitious goal is supported by the national Agenda 10/30, which seeks to achieve a 10% annual agricultural growth rate by 2030. The plan has been backed by increased government funding, including a 30% rise in the Ministry of Agriculture’s budget for the 2023/24 fiscal year FreshPlaza.

Seed Production and Self-Sufficiency

Tanzania is making strides toward self-sufficiency in seed production, with the country now producing 79% of the kernels used in its horticultural sector. In the 2023/2024 fiscal year, Tanzania produced 71,356 tonnes of seeds, reducing dependency on imports and enhancing the resilience of the horticultural value chain Hortidaily.

Employment and Gender Inclusion

The horticultural sector plays a crucial role in employment, particularly for women and youth. It is a significant source of income and livelihood for many, contributing to poverty reduction and socioeconomic development. Efforts are ongoing to promote gender inclusivity and empower marginalized groups within the sector.

Challenges and Considerations

Despite its growth, the horticultural sector faces several challenges:

  • Infrastructure Limitations: Inadequate storage and transportation facilities can lead to post-harvest losses.
  • Market Access: Limited access to international markets due to stringent quality standards and certification requirements.
  • Climate Variability: Changes in climate patterns can affect crop yields and production cycles.

Addressing these challenges requires coordinated efforts between the government, private sector, and development partners to enhance infrastructure, improve market access, and promote sustainable agricultural practices.

21. Chicken Sector

Tanzania’s poultry sector has experienced significant growth in recent years, becoming a vital component of the country’s agricultural economy. Here’s an overview of the current state of the poultry industry in Tanzania:

Poultry Population and Production

  • Total Poultry Population: Approximately 72 million chickens, with 40 million being indigenous breeds and 32 million commercial poultry (24 million broilers and 8 million layers) CSIRO Research.
  • Production Figures (2023):
    • Poultry Meat: 132,442 metric tons.
    • Eggs: 6.41 billion eggs.
    • Day-Old Chicks: 95.5 million, marking a 13.4% annual growth Poultry News Africa.

Production Systems

  • Traditional Systems: Predominantly rural, involving indigenous breeds with low productivity (50 eggs/year and 1.5 kg meat per chicken) CSIRO Research.
  • Commercial Systems: Focused on broilers and layers, benefiting from improved breeds and management practices.

Infrastructure and Investment

  • Infrastructure Growth: The country now boasts 28 hatcheries, 25 breeder farms, one grandparent farm, and over 215 poultry feed manufacturing companies Poultry News Africa.
  • Investment: Over $200 million has been invested across the poultry value chain, including hatcheries, feed mills, and processing plants.

Trade and Export

  • Exports: In 2023/2024, Tanzania exported 2.7 million day-old chicks to countries such as Zambia, Belgium, Kenya, France, Poland, and the United Kingdom Kilimokwanza.
  • Regional Demand: The East African region, including Uganda, Kenya, and the Democratic Republic of Congo, represents significant markets for Tanzanian poultry products.

Challenges Facing the Sector

  • Imports: Cheap poultry imports from countries with lower production costs have undermined local prices, making it difficult for Tanzanian farmers to compete Poultry News Africa.
  • Regulatory Gaps: Weak enforcement of existing laws has left the industry vulnerable to unfair competition.
  • Market Volatility: Fluctuating prices and inconsistent demand affect profitability for local producers.

Future Outlook

  • Deficit Projection: By 2032, Tanzania is projected to face a deficit of 234,000 tons of white meat, including chicken, unless strategic investments are made in the sector Kilimokwanza.
  • Strategic Investments: The government and private sector are encouraged to invest in infrastructure, training, and technology to enhance productivity and competitiveness.

22. Pesticide

Pesticide use in Tanzania plays a significant role in agricultural productivity but also presents challenges related to health, safety, and environmental sustainability.

Regulatory Framework

The Tanzania Plant Health and Pesticides Authority (TPHPA), established under the Plant Health Act No. 4 of 2020, is the primary body responsible for regulating pesticides in Tanzania. This authority ensures that pesticides meet safety standards, protecting human health and the environment while promoting sustainable agricultural practices.

Pesticide Use and Challenges

Smallholder farmers, especially in regions like Iringa, Arusha, and Kilimanjaro, often use pesticides to control pests and diseases in vegetable production. However, studies indicate that pesticide application rates are significantly higher than global averages, with some farmers applying pesticides at concentrations far exceeding recommended levels. A study found that 47.9% of pesticide applications were incorrect, and many farmers lacked knowledge about safe pesticide use practices. The prevalent use of WHO Class II (moderately hazardous) pesticides further underscores the need for improved training and regulation PubMed.

Regulatory Actions and Initiatives

In response to health and environmental concerns, the TPHPA has banned the use of 44 highly hazardous pesticides. This action aligns with the authority’s mandate to protect public health and the environment by regulating the use of harmful chemicals in agriculture Africa Press Arabic.

Additionally, the government has supported the development and rollout of organic pesticides. For instance, Plant Biodefenders Ltd (PBL) launched six organic biocide products approved by the TPHPA, designed to protect strategic crops such as avocado, cotton, coffee, tobacco, cashew, and maize from pests The Citizen.

Future Directions

To address the challenges associated with pesticide use, Tanzania is focusing on:

  • Promoting Integrated Pest Management (IPM): Encouraging farmers to adopt IPM practices that combine biological, cultural, and mechanical control methods to reduce reliance on chemical pesticides.
  • Enhancing Training and Education: Providing farmers with education on safe pesticide use, proper application techniques, and the benefits of organic alternatives.
  • Supporting Research and Development: Investing in the development of safe and effective biopesticides tailored to local agricultural needs.

These initiatives aim to foster a more sustainable and health-conscious approach to pest management in Tanzanian agriculture.

23. Forrest

Tanzania is endowed with a rich and diverse forest ecosystem, covering approximately 55% of its total land area, equating to about 48.1 million hectares. These forests are crucial for maintaining ecological balance, supporting biodiversity, and providing livelihoods for local communities.

Forest Types and Distribution

Tanzania’s forests encompass various types:

  • Woodlands: Comprising about 93% of the forest cover, these include Miombo woodlands and other savanna woodlands.
  • Humid and Lowland Forests: Covering the remaining 7%, these forests are found in coastal areas and mountain regions.

The Tanzania Forest Services Agency (TFS) manages 463 forest reserves totaling 14.5 million hectares, alongside 24 forest plantations that supply industrial raw materials for timber products. Additionally, 20 forest nature reserves, covering 924,876 hectares, are designated for research, education, and low-impact tourism, with no wood extraction permitted tfs.go.tz.

Biodiversity and Ecological Importance

Tanzania’s forests are among the world’s biodiversity hotspots, harboring over 10,000 plant species, many of which are endemic. These forests provide essential ecological services such as oxygen production, carbon dioxide absorption, and habitat for diverse plant and animal species tfs.go.tz.

Deforestation and Degradation

Despite their importance, Tanzania’s forests face significant threats:

  • Deforestation Rate: Approximately 469,000 hectares of forest are lost annually, primarily due to firewood and charcoal production IPP Media.
  • Community Forests: About 35% of community-owned forests are experiencing high rates of deforestation due to weak governance Down To Earth.
  • Land Degradation: An estimated 100 million hectares of degraded land are targeted for restoration by 2030, with Tanzania aiming to restore 5.2 million hectares of forest by late 2030 IPP Media.

Economic and Livelihood Contributions

Forests contribute significantly to Tanzania’s economy:

  • GDP Contribution: Forests account for approximately 3.9% of the country’s Gross Domestic Product (GDP) IPP Media.
  • Energy Supply: Over 90% of the population relies on firewood and charcoal for cooking and heating.
  • Construction Materials: Forests provide about 75% of the materials used in construction.
  • Medicinal Resources: Nearly all indigenous medicinal products are derived from forest resources IntechOpen.

Conservation and Restoration Efforts

To combat deforestation and promote sustainable forest management, Tanzania is implementing several initiatives:

  • Community-Based Forest Management (CBFM): This approach involves local communities in forest conservation and management, aiming to reduce deforestation and degradation Down To Earth.
  • Restoration Projects: The government plans to restore 5.2 million hectares of forest by late 2030 as part of a broader initiative to rehabilitate 100 million hectares of degraded land IPP Media.
  • Carbon Markets: Exploring voluntary carbon markets to generate revenue for forest conservation and provide alternative livelihoods for local communities Reddit.

Tanzania’s forests are vital for ecological balance, economic development, and cultural heritage. While facing challenges such as deforestation and governance issues, ongoing conservation and restoration efforts offer hope for a sustainable future.

24. Traditional Exports

Tanzania’s agricultural sector is a cornerstone of its economy, with traditional export crops playing a pivotal role in foreign exchange earnings and employment. Here’s an overview of the current state of Tanzania’s traditional agricultural exports:

Key Traditional Agricultural Exports

Tanzania’s traditional agricultural exports encompass a range of cash crops, which are vital for both domestic livelihoods and international trade. As of recent data, these include:

  • Cashew Nuts: The leading export crop, with earnings reaching approximately $626 million in 2025, a significant increase from previous years IPP Media.
  • Tobacco: Export value surged to about $340 million in 2023, up from $178 million in 2022, driven by favorable global market conditions Embassy of Tanzania.
  • Coffee: Exports valued at $227.9 million in 2023, marking a 41% increase from the previous year Embassy of Tanzania.
  • Tea: Continues to be a significant export, though specific recent figures are less readily available.
  • Cotton: A staple in Tanzania’s export portfolio, with production figures indicating steady output Scribd.
  • Sisal and Cloves: While not as dominant as cashews or tobacco, these crops still contribute to export earnings.

Trends and Challenges

  • Declining Export Values: Despite increased production, the export value of traditional crops has faced challenges due to fluctuating global market prices and competition from other nations The Citizen.
  • Market Access and Pricing: Local producers often face challenges in accessing international markets and securing fair prices, leading to disparities between domestic and export prices Reddit.
  • Dependence on Global Markets: The sector’s vulnerability to global market fluctuations underscores the need for diversification and value-added processing.

Strategic Outlook

The Tanzanian government aims to bolster agricultural exports, targeting a $3.5 billion export value by 2025, with a focus on both traditional and food crops The Citizen. This includes enhancing value-added processing, improving market access, and supporting sustainable farming practices.

In summary, while traditional agricultural exports remain a cornerstone of Tanzania’s economy, the sector faces challenges that require strategic interventions to ensure sustainable growth and equitable benefits for local producers.

Conclusion: Investing in Tanzania’s Transformation

Tanzania stands at a pivotal moment in its development trajectory, with agriculture, livestock, fisheries, edible oil, and the blue economy offering immense potential for:

  • Import substitution (especially in meat, oil, fish products),
  • Job creation
  • Export diversification
  • Industrial development
  • Sustainable economic growth.

With targeted investments, supportive policy frameworks, and public-private partnerships, Tanzania is poised to become a regional leader in agro-industrial development and ocean-based economy.