PRIVATE companies are increasingly venturing in country’s agribusiness, a trend which boasts agricultural products as well as benefits small scale farmers in various ways.
The companies have mainly been investing in agricultural value chain including producing improved seeds, agri-chemicals, fertilizers ,provision of veterinary services, transportation and information to rural smallholder farmers.
Among other factors, the trend has been driven by the Tanzania Agribusiness Window(TZAW) a programme which is implemented by the Africa Enterprise Challenge Fund (AECF).
The programme is funded by the UK’s Foreign and Commonwealth Development Office (FCDO) and the Swedish International Cooperation Development Agency (Sida).
AECF Chief Executive Officer, Ms Victoria Sabula, said through the programme they had raised innovative business ideals to address challenges facing the small-scale farmers.
“The programme has proven the success to invest in start-ups and early-stage agri-businesses especially those turning research into innovative products in responding to demand. We have seen wonderful technologies and innovations being introduced in Tanzania ranging from soil testing, seed quality verification and innovative insect-derived protein used as feed supplement for livestock among others,” she said.
Ms Sabula cited poor access to agricultural processing facilities in rural areas as among challenges facing the farmers.
The TZAW availed funding to agriculture-oriented private sector companies in a wide range of areas in the value chain including seed companies, horticulture, fruit and vegetables, potatoes, fertilizer, and cashew nuts farmers.
The programme has positively impacted over 500,000 households, introduced innovative technologies and changed how markets work for the poor.
The AECF is an African development funder that supports innovative commercial businesses in the agribusiness, renewable energy and adaptation to climate change technology sectors. It aims at reducing rural poverty, promoting resilient communities and creating jobs through private sector development.
Launched in 2008, the AECF has mobilized over 420 million US dollars and improved the lives of more than 30 million people, created, and sustained over 26,500 direct jobs.
Ms Kemi Williams, Development Director, British High Commission in Tanzania said, “We believe that market-based approaches represent a proven development model and through this TZAW programme, we have been able to demonstrate that through a private sector approach, it is possible to transform the livelihoods of rural and marginalized people.”
Mr Stephen Mwakifamba, Senior Advisor, Embassy of Sweden in Tanzania said, “Availing agricultural inputs in an efficient and affordable way is transformational for agriculture in Tanzania.”
The companies funded by this programme have supported smallholder farmers to access seed, fertilizer, equipment and technology that was previously unavailable or unaffordable. This has changed how agriculture is practiced in Tanzania and the benefits that smallholder farmers get.
TZAW has been transformational for Tanzania and has contributed to efforts to increase the production and productivity of smallholder farmers.
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