Potential Impact

Agriculture Transformation: Outcomes and Potential Impacts

The perception of agriculture stakeholders on the progress and quality of policy reforms has steadily improved as reflected in the aggregate Index of the Policy Institutional Architecture Assessment (IAA) in 2 surveys, 2020 (2.99 out of 5) and 2024 (3.3 out of 5)
Budget for Both the Ministry of Agriculture and the Ministry of Livestock and Fisheries have tripled from $120 mil in 2021/22 to over $600 mil in 2024/25
The data-driven strategies have attracted over $800 mil commitment in financing from international development organizations, e.g., World Bank, IFAD ($130 mil), AfDB, JICA, USAID/Feed the Future, etc.
Tanzania has achieved record agricultural exports exceeding $2 billion
Inflation which is often driven by food and energy prices, has decreased from 5% to 3%
Financial Institutions lending to the agricultural sector has increased from 8.7% in 2021/22 to 10.2% in 2023/24
Number and value of investment projects registered by TIC has increased from 3.5% in 2021/22 to 5.4% in 2022/23

Over 5 fiscal reforms enacted through Annual Finance Acts, 2020 – 2024
Import tariff to protect local processors increased for imported edible oil, wine, UHT milk and other products
Import duties and VAT on various agricultural technologies were either reduced exempted e.g. cold storage, feed ingredients, etc.
Excise duty on raw materials for agricultural processing reduced or prorated, e.g. packaging materials, etc.

Weekly and monthly market bulletins produced and disseminated by MIUs
Restrictions on regional food trade relaxed and challenges on cross-border trade emanating from Covid-19 resolved
Regional food trade on cereals, pulses, and oilseed and export to Asian markets for the first time exceeded 1.5 million tons and $1 billion in export earnings in 2022/23
Reduction in food import bill from $640 million in 2020 to $350 million in 2023/24
Meat export earnings have increased from $1.5 million in 2020/21 to $56 mil in 2023/24

Removal of 105 nuisance regulatory fees in crops
Removal of over 60 nuisance regulatory fees in livestock
The share of lending in agricultural credit increased from 8.7% in 2021/22 to 10.2% in 2023/24
The share of investment projects registered by TIC increased from 3.5% in 2021/22 to 5.4% in 2022/23
Establishment of the Tanzania Livestock and Livestock Products Board is underway
Establishment of the Tanzania Fisheries and Aquaculture Authority is underway

Increased budgetary allocation to productivity-enhancing interventions such as research, seed systems, fertilizer subsidy, irrigation, improved livestock breeds, livestock vaccination, etc.
Fertilizer Bulk Procurement System was suspended in 2022 but reinstated in 2023 to support subsidy program to mitigate the fertilizer price crisis emanating from Covid-19 pandemic
Restrictions of regional fertilizer re-export relaxed
The 2022/23 Agricultural Annual Census shows increased adoption of inorganic fertilizer and improved seed compared with 2019/20.

Revitalization of crops and livestock extension service, including provision of motor cycles to over 9,000 extension staff, provision of extension kits, soil canners
The data-driven BBT program has attracted over $240 million in financing from the World Bank, IFAD, and AGRA
65 NGOs supporting youth activities in agriculture are coordinated through the BBT secretariat

Food and Nutrition Policy review advanced
Multi-Sectoral Nutrition Action Plan (MNAP – II) adopted
Nutrition Curriculum for COVID-19 mitigation adopted
LGA budgetary allocation to nutrition activities sustained
Stunting (low height for age) among under-five has decreased from 42% in 2010 to 32% in 2018

Public investment for agriculture intensification (to improve productivity) has been sustained for 4 consecutive years for both Ministries of Agriculture and Livestock
National Irrigation Commission (NiRC) Reformed and Financing Mechanism devised
Livestock Infrastructure Development Agency (LIDA) established for climate change mitigation
Streamlining of the legal and regulatory framework for ‘farmland leasing’ is underway