Agricultural reforms reposition Tanzania’s rural economy

AGRICULTURE remains the backbone of Tanzania’s economy contributing over 26 per cent of the GDP, providing more than 65 per cent of employment and ensuring national food security.

Under the transformative leadership of President Dr Samia Suluhu Hassan, this critical sector is undergoing unprecedented reforms aimed at driving inclusive economic growth, industrialisation and rural prosperity.

From expanding access to markets and technology, to subsidising inputs and empowering youth through innovative programmes, President Samia has repositioned agriculture as a central pillar of Tanzania’s development agenda. One of the most notable shifts under her leadership is the integration of agriculture into Tanzania’s foreign economic policy.

Through proactive economic diplomacy, Tanzanian agricultural products are increasingly finding their way into highvalue markets such as China, India, Europe and the Middle East. This market expansion has helped farmers benefit from higher prices and stable demand.

A striking example is in the coffee sub-sector, where export revenues rose from 145.2 million US dollars in 2015 to 292.9 million US dollars in 2024, driven by increased production from 60,651 tonnes to 77,417 tonnes in the same period.

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These gains reflect strategic policy choices and effective implementation. President Samia’s administration has taken concrete steps to make agricultural inputs more affordable and accessible.

Through institutions such as the Tanzania Fertiliser Regulatory Authority (TFRA) and Tanzania Agricultural Research Institute (TARI), the government is distributing quality seeds and fertilisers at subsidised rates, offering training to farmers and promoting smart agriculture through digital platforms and contract farming.

By 2025, fertiliser distribution will hit 1.5 million tonnes up from just 342,798 tonnes in 2014/2015 with 300bn/- in subsidies allocated across crops. These interventions not only enhance yields but also build a resilient agricultural system supported by modern technology and evidence-based decisionmaking.

A significant barrier to growth in agriculture has long been access to affordable credit. Under President Samia’s leadership, this bottleneck is being addressed through the strengthening of financial institutions and targeted interventions.

The Tanzania Agricultural Development Bank (TADB) has been recapitalised to 435.4bn/- and has disbursed 457.3bn/- in loans to over 1.06 million farmers.

In parallel, NMB Bank increased lending to farmers and pastoralists from 730bn/- in 2021 to 1.6tri/- in 2024, with a significant portion provided at a low interest rate of 9 per cent. In addition, the government has introduced guarantees worth 206bn/- and launched youthspecific initiatives such as the Building a Better Tomorrow (BBT) programme, which has already disbursed 10.7bn/- and committed 150bn/- for block farming projects.

The BBT programme, launched in 2022, has emerged as a game-changer in attracting youth and women into agribusiness. It offers training, access to land and inputs, financial support and market linkage all with the aim of making agriculture modern, profitable and appealing.

So far, 1,252 youth have enrolled and 812 have completed four-month intensive training. The programme has supported the establishment of 12,000 youth-led agribusiness companies and targets the creation of 3 million jobs by 2030.

The BBT has also boosted seed oil production from 1.7 million tonnes in 2021 to over 2.18 million tonnes in 2024, demonstrating its effectiveness in enhancing productivity and value addition. President Samia’s government is not only boosting production but also reforming trade systems to ensure that farmers get fair returns.

A combination of improved infrastructure, market regulations and efficient payment systems has eliminated exploitative middlemen and informal trading networks.

Under her reforms, farm gate prices for commodities like pigeon peas rose from 200/- to 4,000/- per kilogram and cocoa from 900/- to over 30,000/- per kilogram.

Quick payment directives have ensured that farmers receive timely compensation, thus improving liquidity and investment in the next planting season.

Moreover, the formal procurement system has expanded significantly from 591,268 tonnes of produce worth 1.1tri/- in 2021 to over 2.23 million tonnes worth 4.2tri/- by 2025. This shift reflects the success of structured trade and institutional buying mechanisms.

Agricultural transformation under President Samia is not only about inputs and markets, but also about long-term infrastructure. Large farms, modern irrigation systems, improved rural roads, grain storage facilities and cold chains are being rolled out across the country.

During a recent tour of Ruvuma Region, President Samia focused on expanding coffee and black pepper plantations, with plans to scale coffee production from 65,000 tonnes to 80,000 tonnes annually.

These efforts are anchored in value chain development and are designed to reduce postharvest losses while improving quality and competitiveness.