TANZANIA: ANALYSTS have described the government’s planned new payment system for farmers as a significant step to improve their livelihoods and support national development.
During her recent visit to the Ruvuma Region, President Samia Suluhu Hassan instructed the Ministry of Agriculture to implement this new payment structure starting in the next farming season.
Under this system, cooperative unions will pay farmers directly without involving the Agricultural Marketing Cooperative Society (AMCOS).
In response to the President’s announcement, economist and investment banker Dr Hilderbrand Shayo expressed that paying farmers through cooperative unions, without going through AMCOS, will help them receive fairer compensation for their produce, ultimately enhancing their quality of life.
He noted that eliminating AMCOS’s deductions from farmers’ payments will enable them to access funds promptly, allowing them to invest in their development and contribute to the national economy.
Dr Shayo added that this new system could lead to increased agricultural productivity, as farmers will be more motivated to invest in better practices and technologies, knowing they will receive fair payment for their efforts.
He stressed that timely payments are crucial for farmers to meet their operational costs and invest in future harvests.
Speaking about various government strategies announced by President Samia to support small-scale miners, Dr Shayo stated that miners will receive fair compensation for their minerals through a new state-of-the-art mineral market, constructed through a Public-Private Partnership (PPP) between the local council and mineral traders.
He said the government will eliminate avenues for illegal mining activities, as miners will have a reliable market to sell their minerals, adding that the initiative is expected to enhance the mining sector’s overall integrity and support the livelihoods of small-scale miners.
Regarding the provision of water and electricity services to residents in Ruvuma, Dr Shayo said that the initiatives will help the community avoid infectious diseases and alleviate the burden of searching for water, allowing them to focus on economic activities.
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He further noted that access to electricity will enhance production activities among residents and contribute to national economic growth.
Dr Shayo emphasised that it is the responsibility of the citizens to fully utilise the opportunities provided by the government for their development and for the benefit of the nation as a whole.
A lecturer in the Department of Economics at Saint Augustine University of Tanzania (SAUT), Dr Francis Nyoni, said the new payment structure is expected to empower farmers by giving them more control over their earnings and enhancing their financial security.
He said that the initiative aligns with the government’s broader goals of promoting sustainable agriculture and improving food security in the country.
Dr Nyoni highlighted that the newly established Public-Private Partnership (PPP) mineral market is a commendable strategy because it involves the private sector, thereby easing the government’s financial burden and promoting national development.
He noted that in the past, unskilled miners often faced exploitation by middlemen, which resulted in them receiving far less than the true value of their minerals.
He said that with the new system, the miners can now benefit from a reliable market that ensures fair prices for their products.
He further stated that the government will be able to collect accurate data on the minerals sold, which is vital for legitimate taxation and can significantly contribute to the country’s development initiatives.
This transparency will not only enhance revenue collection but also help in planning and executing national projects more effectively.
Monitoring and Evaluation Specialist, Ms Lilian Shirima, underscored the importance of strong oversight from the Ministry of Agriculture to ensure the success of the new payment system for farmers.
She stressed that cooperative unions must be properly managed to guarantee that farmers receive timely payments that reflect the true market value of their produce, saying this will empower farmers, improve their financial stability and encourage them to invest more in their agricultural practices.
Moreover, Ms Shirima pointed out that small-scale miners will benefit from a secure and stable market.
President Samia’s tour of the Ruvuma Region took place from September 23 to 28, during which she visited five districts, including Songea, Mbinga, Nyasa, Tunduru and Namtumbo.
Throughout her visit, she inspected and inaugurated various development projects aimed at improving the quality of life for residents.
The President’s agenda included discussions with local leaders and community members to understand their needs and gather feedback on ongoing initiatives. She expressed the government’s commitment to fostering economic growth and addressing challenges faced by the communities in the region.