Agriculture and Food Systems Transformation
Ag and Food Systems Transformation: Situation Analysis
- Agriculture Sector seems to be a follower rather than a driver of economic growth in Tanzania
- Economic growth over the last 2 decades: Total GDP >5% while Ag GDP <5%
- Economic growth is not inclusive: Poverty rate (24%) declining at a rate of 0.5% annually during the
last 3 decades; 9% of Tanzanian households are below the food poverty line - Food is expensive: Tanzanian households spend over half of their incomes on food (Rural 63%,
Urban 53% – HBS 2018) - Food surplus is marginal (20 – 24%) and hence Tanzania has to trade cautiously
- Agriculture productivity is low – 1.2 tons/ha for cereals, pulse and oil-seed
- Limited value addition: Tanzania spends over $700 in importing wheat, sugar, edible oil, fertilizer,
seed etc. - Recent studies point out that an inadequate policy environment is a binding constraint to
agricultural sector growth and transformation