Tanzania: Sh100bn set to unlock local farmer markets

Tanzania's Cereals and Other Produce Board has announced plans to allocate 100 billion Tanzanian shillings towards purchasing agricultural products from local farmers in the upcoming fiscal year of 2023 and 2024. This significant investment is aimed at promoting value addition in the agricultural sector and revolutionizing the production chain for small-scale farmers, providing them with access to larger markets. In an exclusive interview with CNBC Africa, the Chairman of the Board, Salum Awadh, discussed the transformative impact of this initiative on Tanzania's agriculture industry. With the ambition to position Tanzania as a key food provider in Africa and globally, the Board envisions bolstering the capabilities of smallholder farmers who currently account for the majority of agricultural activities in the country. Despite facing challenges such as limited mechanization and low productivity, the Board is determined to enhance farmers' potential through reliable market access and increased processing and export opportunities. By earmarking 100 billion Tanzanian shillings for purchasing local produce, the Board is pioneering a strategic shift to boost its operational efficiency and maximize the utilization of existing facilities. Salum Awadh highlighted the organization's commitment to leveraging its own resources and engaging with financial institutions to support the initiative, emphasizing self-sufficiency and profitability. Additionally, the Board aims to enhance storage capacities to mitigate food inflation and stabilize the market, ultimately fostering sustainable growth in the agricultural sector. While prioritizing local sourcing of products, the Board's focus remains on empowering Tanzanian farmers and facilitating their growth. Export efforts are targeted at regional markets within Africa, including countries like Kenya, Rwanda, the Democratic Republic of Congo, and South Sudan. The implementation of modern agricultural practices is seen as imperative in adapting to climate change impacts and increasing productivity in the sector. The government is actively investing in irrigation schemes to reduce dependency on rain-fed agriculture, while the Board is exploring partnerships with agri-tech startups to introduce innovative solutions for climate-smart farming. With a strong emphasis on technology adoption, including precision agriculture and predictive techniques, the Board is committed to driving sustainable agricultural development and supporting farmers in adapting to changing environmental conditions. This strategic approach aligns with the broader goal of positioning Tanzania as a leading agricultural hub in the region and fostering economic growth through enhanced farmer support and market access.