What 44 percent rise in horticulture exports means to Tanzania

Dar es Salaam. The value of horticultural crops’ exports grew to $417.7 million (Sh1.044 trillion) in 2023 as compared to $290.1 million (Sh725.25 billion) recorded in 2022, the recent Bank of Tanzania (BoT) statistics show.

The BoT Monthly Economic Review (MER) for the year ending in December 2023 shows that exports grew by $127.6 million (Sh319 billion), which is equivalent to 43.9 percent.

The growth in exports comes after a decline from $384.9 million (962.25 billion) reported in 2021 to $290.1 million (Sh725.25 billion) in 2022.

The decline, according to the document, accounted for a total of $94 million (Sh237 billion), which is equal to 24.4 percent.

However, the Tanzania Horticultural Association (Taha) chief executive officer, Ms Jacqueline Mkindi, told The Citizen that the growth was in line with the government’s plans to export $2 billion (Sh5 trillion) by 2030.

He outlined strategies that would ensure the realisation of the plan, such as collaborating with the government to create a conducive business environment through the lifting of trade barriers impeding the prosperity of trade.

She said the purpose of lifting trade barriers was to improve the country’s investment climate for the benefit of available investors and attract several others.

“We are also facilitating investment through the provision of information to foreign investors to make Tanzania a destination of priority,” she said. “We are also working hard to improve exports made by domestic investors. We collaborate with the government and strategize for opening efficient markets for horticultural products,” she added.

She said the initiative involves the identification of efficient markets and informing respective investors in the industry.

Further, Ms Mkindi said the association was also closely working with export companies, noting that over 17 firms were expected to participate in the 2024 Berlin Trade Fair.

“The collaboration aims at enabling the firms to advertise the country’s available investment opportunities as well as interacting with international buyers. The association has been preparing a pavilion for exporters to showcase their products and services to global buyers and dealers attending the exhibitions,” she said.

“Not only the Berlin Expo... we have also been participating in other similar events in Spain and Italy, among others. We are also improving and strengthening logistics services through airports, cross-borders, and water bodies,” she added.

According to her, the introduction of TahaFresh Logistics Handling Limited has significantly reduced cargo damage that has been accounting for huge losses in the country.

She said Taha was working hard to unlock the export value chain, ranging from securing market opportunities, building the capacity of exporters, attracting investment, enhancing the growth of local investors, reducing the costs of logistics services and securing standard accreditation within the country.

Ms Mkindi said the association was also enhancing and strengthening crop storage and transportation to reduce post-harvest losses that remain higher in fruits and vegetables.

“Taha has been mobilising resources from different partners for the construction of storage infrastructure. Recently, we have signed a $24 million deal with the United States Agency for International Development (USAID) for the implementation of a project aimed at reducing post-harvest losses in the sector,” she said.

She said the project, dubbed Tuhifadhi Chakula (literally, preserve food), will create more jobs in the sector and beyond.

The Sokoine University of Agriculture (Sua) lecturer at the department of agricultural economics and agribusiness (DAEA), Dr Anna Temu, attributed the notable increase in exports in the sector to the recognition of Tanzania’s products in the Dubai market.

The country was now aware of products of Tanzanian origin, therefore directly purchasing the produce from the country instead of using intermediaries, according to her.

She said the operation of a cargo place was another advantage as Tanzanian produce could now be efficiently transported to different markets, including India, Dubai, China and Mauritius, among others.

“The most interesting thing is the youth’s increasing engagement in the agricultural sector, which significantly boosts yields. For instance, in tomato farming, the increase in varieties, especially those that are resistant to pests and diseases, drought and withering, is a huge advantage for the country,” she said.

The increase in volume, Dr Temu said, was also associated with market reliability, saying buyers were quick to abandon markets that were unable to provide the required quantity of produce.

According to her, guaranteeing the volume and quality of the produce puts the country in a better position to attract many global markets.

“Farmers shifting from purchasing seeds, sowing in nurseries, and transplanting the seedlings to purchasing sold seedlings from professional companies is also linked to the witnessed boom,” she said.

“This is what developed countries, including Canada, are doing. Specialised firms have been trading better variety seedlings to farmers,” added Dr Temu, who doubles as the chair and founder of the Sokoine University Graduate Entrepreneurs Cooperative (SUGECO).

She said in order for the trend to be sustainable, the country should continue to encourage foreign buyers to prioritise the Tanzanian market due to assurance supply and increasing youth engagement.

“Through agriculture, the youth are now making up to over Sh300 million annually. These are the people generating the money after developing individual interests without any government support. Some of them have been supported by their families following the government’s policy statement that agriculture pays,” she said.

Regarding the role of the Build Better Tomorrow (BBT) programme, she said the initiative remains an incubator or accelerator, with the impact of the graduating youths expected to be seen in the next two to three years. The Southern Agricultural Growth Corridor of Tanzania (SAGCOT) chief executive officer, Mr Godfrey Kirenga, emphasised that the country should ensure that there are conducive policies that attract both domestic and foreign investment. He said in the horticultural sector, SAGCOT will have attracted $1.2 billion in investment by the end of 2023, therefore significantly contributing to the sector’s development.

“Farmers are now transforming their lives through collected revenue, and those who couldn’t get Sh1 million annually have advanced to garnering up to Sh20 million to Sh30 million annually,” he said.

Policies, guidelines and procedures should be predictable and build a conducive environment for investment attraction, according to him. Furthermore, he said the government in power was listening and strengthening areas associated with growth, therefore accounting for the notable achievement.

He also underscored increased youth involvement in the agricultural sector, therefore bringing significant changes and a promising future.

“Since the country’s plans focus on future development, more good things are expected by the end of this year,” he said.