AKM Glitters Founder, Swai on how to reduce Tanzania’s dependence on Agri-imports

Tanzania has long been known as a key player in exporting food commodities globally, ranking as Africa's third strongest exporter in this sector according to the United Nations Conference on Trade and Development. However, the country faces a stark reality as it leads the East African region in import dependence for food commodities. This begs the question, what can be done to lessen this dependency and bolster self-sustainability in agriculture? Elizabeth Christopher Swai, the Founder and Managing Director of AKM Glitters Company Limited, sheds light on the challenges and efforts being made to tackle this issue. The Agribusiness sector in Tanzania faces numerous hurdles in its path towards growth and development. Swai highlights the transition from a socialist to capitalist economy as a significant process that requires a shift in mindset. Tanzanians are progressively embracing the idea of working in the Agribusiness sector, but hurdles such as bureaucratic policies and political dynamics continue to pose challenges. Swai emphasizes the importance of improving the business environment to make Agribusiness more lucrative and attractive for investment, ultimately driving industrialization and economic prosperity. When it comes to import dependency, Tanzania has been particularly vulnerable, as noted by UNCTAD. The specialization in export crops at the expense of staple foods for domestic consumption has exacerbated this issue. Swai points out that African countries collectively spend billions on food imports from global markets, with Tanzania itself importing significant quantities of poultry from European and US markets. This trend not only showcases dependency but also raises concerns about dumping practices that harm local industries. To combat this dependence and bolster self-sustainability, Tanzania is implementing a range of initiatives. Swai mentions the collaboration with smallholder farmers to enhance productivity and add value to agricultural products. In her case, she has formed partnerships with investors to support value addition in the poultry sector, aimed at empowering small farmers. The Tanzanian government is also stepping in with financial support, such as instructing financial institutions to offer loans to agricultural businesses at a favorable rate of 10%. Additionally, the government allocated 229 billion Tanzanian shillings in this year's budget to the agriculture sector, signaling a commitment to fostering growth and innovation. While these efforts are commendable, Swai believes there is still room for improvement. She notes that ongoing dialogues with the government through policy review committees are essential for articulating business needs and advocating for necessary reforms. Tanzania is strategically investing in key areas like the production of staples and edible oils within the country to reduce dependency on imports and enhance self-sustainability. As Tanzania charts its course towards reducing agri-imports and strengthening its agricultural sector, collaboration between the government, businesses, and farmers will be critical. By fostering a conducive business environment, investing in value addition, and promoting local production, Tanzania aims to carve a path towards self-sufficiency in agriculture and minimize import dependency, ultimately driving economic growth and food security.