Tanzania reveals new strategy to promote horticulture

Arusha. Finally, the government has said it will act decisively on the abandoned horticulture estates in Arusha in its new bit to boost the multi-million dollar industry.

According to the Bank of Tanzania (BoT), the country earned $289.6 million from horticulture exports last year.

This was, however, a drop from $378.6 million that was exported in the previous year (2021).

And yesterday, the government said two of the commercial farms will be retaken by the state while the other five will have to wait as they have pending cases in court.

The state will ensure that terminal benefits amounting to billions of shillings for hundreds of workers forced into redundancy is paid.

The minister for Agriculture Hussein Bashe said the government has decided to intervene in order to get the farms back in production.

He revealed this at Usa River township, the heart of horticultural production along the Arusha-Moshi highway, yesterday when responding to concerns raised on the ruined farms.

“I want to assure you; the government has not failed to address uncertainties regarding the closed farms,” he told hundreds of Arumeru residents, some of them jobless after the farms were abandoned.

They had turned up at Usa River township where President Samia Suluhu Hassan briefly stopped to hear their grievances.

The minister admitted that much concern was with the 209 acre Kiliflora estate which was once leading in the production of exotic flowers for export as the name suggests.

He said the estate which, according to him, was a partnership between a local and foreign investor was one of the beneficiaries of a bank loan.

“The loan was extended by TIB Bank but had allegedly not been accounted for or was not channeled for the intended use.

“Now the farm will be retaken by the government,” he stated, noting that the ministry had reached out to the Arusha regional commissioner’s office on the matter.

He added that the process of settling Sh3.4 billion being the terminal benefits of hundreds of former employees at the farm.

“Former workers will be paid very soon. In fact, this will be resolved within a month,” he pointed out.

The farm, he further said, will be retaken by the ministry of Agriculture which will, in turn, hand over to new investors.

Kiliflora was one of the oldest flower farms in the country and used to generate $6.4 million annually for exports at its peak.

A recent visit by The Citizen to the site was deplorable as the high tech irrigation networks and other machinery have all broken down.

Kiliflora is a brand name for two estates, one of them being Kiliflora Usa River, a few kilometres from where President Hasssan made a stopover.

The other is Kiliflora Nduruma, 94 acre farm, much closer to Arusha city but also in a sorry state with dilapidated abandoned structures.

Mr Bashe did not mention the rest of the abandoned estates by name but hinted that their fate would largely depend on the decision of the court.

He insisted, however, that the government was keen to see the estates continuing with horticultural farming.

“Horticulture crops earn the economy more per unit area than other export or traditional crops,” he explained.

One of the ex-horticultural farms, Tanzania Plantation had been earmarked for sisal cultivation by its new investor.

However, the minister stressed that preference should be given to new investors in horticulture as Arusha has comparative advantage in the sub sector.

For the past two decades, the horticulture sub-sector has registered a faster growth averaging 10 percent than any other in agriculture.

From a relatively new sub sector in the late 1990s, it has grown to a robust industry accounting for 30 percent of agricultural GDP.

Although horticulture was impacted by Covid-19 pandemic like other sectors, it was the closure of farms in Arusha which added salt to injury.

In less than five years - even before the outbreak of the pandemic- decaying machinery, tonnes of debris and dilapidated structures had become the hallmark of the once evergreen farms.

Kiliflora Usa River, Kiliflora Nduruma and Arusha Blooms alone are reported to have accumulated bank loans amounting to Sh29.8 billion not paid back.

Industry players intimated to The Citizen recently that the closure of three and other farms deprived the economy of $20 million in expert revenue per year.

The abandoned horticulture estates in Arusha have been raised several times by the local politicians, many saying it has led to unemployment and the declining economy of the region.

The first salvo yesterday was fired by the Special Seats MP for Arusha Zainabu Swai who said the closure has rendered over 500 workers jobless.

She implored President Hassan to intervene in the matter since “horticulture farms are important for the Arusha economy”.

Her concerns were echoed by the regional CCM chairman Zelothe Stephen who was much agitated by failure to settle the terminal benefits of hundreds of workers laid off.

Arusha regional commissioner John Mongela said the land disputes that are common in Arusha have been compounded by closure of the horticulture estates.

President Hassan did not respond directly to the closed farms but told hundreds of citizens that her administration would address the issue.