Tanzania recorded another bumper harvest in the 2017/18 season where 15.9 million tons of food was produced. This is a 20% increase from the previous season, when the nation also produced surplus food, with annual demand standing at 13.3 million tons. There are already indications that Tanzania will once again be self-sufficient in food harvests in the 2018/19 season.
The agriculture sector remains the mainstay of the Tanzanian economy despite the relatively slow pace of growth of farming activities compared to other sectors such as construction, communications and financial services.
Data from the National Bureau of Statistics (NBS) shows that agriculture was the second-biggest contributor to gross domestic product (GDP) or economic output in Tanzania in 2017, at 30.1%.
The services sector was the biggest driver of economic growth with a 37.5% contribution during the year under review. More than 11 million people participated in agricultural activities in the country during the 2014/15 season. But despite its huge importance to the economy, agricultural activity grew by just 3.6% in 2017, lagging behind other sectors of the economy.
The sector's contribution to GDP is supported by rising cash crop production, an emerging agro-processing segment, and strong domestic demand for processed food, according to the Oxford Business Group.
Many economists agree that for agriculture to make a bigger impact on poverty reduction and national economic growth, it needs to grow at double-digit levels.
Farmers and other sector stakeholders still face considerable challenges in modernising the industry to increase yields, exports, and value-added processing. They also face regulatory restrictions in export of their crops, land ownership hurdles, lack of access to economically viable technology, adequate storage facilities, markets and credit.
