Samia outlines plan to double coffee exports in five years

Songea. President Samia Suluhu Hassan on Tuesday outlined Tanzania’s plan to double the value of coffee exports from $250 million (Sh700 billion) to $500 million (Sh1.4 trillion) over the next five years.

During her visit to Aviv Tanzania Limited coffee plantations in Lipokela Village, Songea, she emphasised the importance of improving training for coffee farmers to boost production and export value.

The President highlighted the substantial increase in the Ministry of Agriculture’s budget, which grew from Sh229 billion in 2020/21 to Sh970 billion in 2023/24 and crossing the Sh1 trillion-mark in 2024/25.

This funding will help recruit agricultural extension officers and distribute 20 million quality coffee seedlings to farmers at no cost. The government has also simplified the coffee purchasing system through online platforms and improved payment processes.

Read: Tanzania moves to safeguard access to EU coffee market

With this funding, President Hassan said, the government will effectively support the recruitment of agricultural extension officers and the distribution of 20 million quality coffee seedlings at no cost to farmers.

Additionally, she said the coffee purchasing system has been improved through the online platforms and payment processes have been simplified.

“The government is collaborating with stakeholders to build and improve irrigation infrastructure in key growing regions to boost production and farmer income,” she said.

President Hassan pointed out that enhancing coffee export value will reduce government borrowing and reliance on external loans.

According to her, initiatives such as lowering the council levy from five to three percent and expediting payment periods from a month to three days have been made.

She stressed the importance of environmental conservation amid climate change challenges.

“There is also the compliance with European market standards. Emphasis should be that farm expansions should not lead to deforestation because that market is very important for Tanzania farmers to lose,” she insisted.

Regarding the company’s corporate social responsibility (CSR), she supported initiatives to support local farmers through improved irrigation practices and the introduction of alternative crops instead of the traditional investment in improving the learning environment and the provision of healthcare services.

During the event, Peramiho Constituency lawmaker Jenista Mhagama reported that 10 of 14 management positions at Aviv Tanzania Limited are now held by Tanzanians, therefore enhancing the local capacity.

Agriculture minister Hussein Bashe highlighted improvements in coffee prices linked to the new online trading system and commended recent policy reforms aimed at boosting investor confidence in the agricultural sector.

Meanwhile, President Hassan yesterday laid the foundation stone for the Sh14.757 billion project to construct 28 cereal storage warehouses in Ruvuma Region.

The laying of the foundation stone was among President Hassan’s activities in Ruvuma Region after arriving in Songea Town on Monday for a working visit slated to end on Sunday, September 29, 2024.

Shortly after her arrival, she received a development report of the Songea Airport rehabilitation and expansion project, visited and honoured the Majimaji heroes during her visit at the National Museum in Songea.

The Head of State then officially closed the third edition of the Cultural and Traditional Festival 2024, at the Majimaji Memorial Grounds.

Speaking before cutting the ribbon to lay the foundation stone, the Minister of Agriculture, Mr Hussein Bashe, said the 28 warehouses were part of the 70 facilities to be built in five regions, namely: Ruvuma, Dodoma, Mbeya, Songwe and Njombe.

“11 warehouses have been built in the Songea District Council, nine in Madaba District, eight in the Namtumbo District and one facility at the Songea Municipality Council,” he said.

Mr Bashe said a tender for the implementation of the remaining 42 warehouses has been announced, noting that each warehouse will have an office and laboratory for testing cereals before and after entering the warehouse.

Furthermore, he said the project’s second phase will involve the construction of warehouses that will have a capacity to store 500,000 metric tonnes of cereal.

He said while the 28 warehouses have the capacity to store 1,000 tonnes each, those to be built in rural areas during the second phase would have the capacity to store 5,000 tonnes of cereals each.

“You directed the Ministry of Agriculture to ensure Tanzania acquires a three million cereal storage capacity by 2030. But, with the ongoing construction pace, we are confident that the target will be realised before the said year,” he said.

Briefing the President about the technical details of the constructed warehouse project, the National Food Reserve Agency (NFRA) Investment and Property Management Manager, Mr Imani Nzobonaliba, said the facilities used the new technology that prevents water leakages.