Tanzania offers USAID-funded project import duty exemption to combat post-harvest losses

Arusha. The government has announced a strategic tax exemption for the ambitious project designed to tackle post-harvest losses in horticultural and cereal crops.

Feed the Future Tanzania Tuhifadhi Chakula project funded by the US government and executed by Tanzania Horticultural Association (Taha), seeks to reduce post-harvest losses in horticulture from 30-40 percent to 15 percent and in grains from 13 percent to 7 percent by 2028.

Permanent Secretary in the Ministry of Agriculture, Mr Gerald Mweli, announced that the government's commitment to the project, valued at Tsh 50 billion, includes providing import duty exemptions on relevant purchases.

"This initiative will allow us to offer farmers technologies with lower costs, enhancing their productivity and sustainability," Mr. Mweli stated during the launch of a two-day exhibition focused on post-harvest loss management and value addition technologies.

Mr Mweli highlighted that technology transfer is essential, suggesting that tax exemptions, subsidies, and access to loans from financial institutions are critical components.

He noted the damaging effects of pests on crops, which not only contribute to post-harvest losses but also compromise consumer health, should also be looked at by the project.

"Farmers should be equipped with tools to combat pests and enhance food safety," he added.

For instance, he mentioned that a farmer with 10 acres of sunflowers could invest in machinery costing just Sh3 million, enabling them to produce cooking oil for their entire community.

"We cannot continue to rely on imports for cooking oil when we have the raw materials available," he emphasized, reaffirming the government's support for farmer groups in processing their own oil.

The government's subsidy for high-quality sunflower seeds in 2022 has already led to a dramatic increase in sunflower production, rising from 490,000 tons to 1.1 million tons.

Around 30 companies participated in the exhibition held at the Arusha Declaration Museum, showcasing innovations in soil health assessment, harvesting, storage, processing, packaging, and value addition.

Mr Mweli pointed out that rising production costs in Africa, including Tanzania, have rendered the agricultural sector uncompetitive.

To mitigate this, the government is prioritizing investments in soil health to bolster agricultural productivity.

Chief of party for the Feed the Future Tanzania Tuhifadhi Chakula project, Mr Amani Temu, said that these exhibitions will become annual events in various regions to ensure farmers have access to essential technologies for harvesting and enhancing their crops.

The project also aims to improve food preservation, crop processing, and access to both regional and international markets, while addressing policy barriers that hinder the affordability of food storage and value addition technologies.

"We are committed to collaborating with stakeholders in both government and the private sector to tackle these policy challenges, ensuring a lasting reduction in post-harvest losses," Mr Temu remarked.

The Permanent Secretary praised Taha's integral role in the horticulture subsector, acknowledging its contributions to the industry’s growth.

 "It would be remiss to discuss horticulture without recognizing Taha's influence," he noted.

Taha CEO, Ms Jacqueline Mkindi, expressed gratitude to the Ministry of Agriculture for its support and to the U.S. government for laying the groundwork for the horticultural industry.

She assured the Permanent Secretary that Taha, under Mr Temu's leadership, would continue to drive the success of the Feed the Future Tanzania Tuhifadhi Chakula project.