AGRICULTURE POLICY EXCHANGE AND LEARNING EVENT TANZANIA COUNTRY PRESENTATION DAKAR SENEGAL 14TH MAY 2013 BACKGROUND Country Profile: • Land: Tanzania has an area of 94.5 million hectares of which about 43 million hectares is suitable for agriculture. Currently only about 23 percent of arable land is cultivated and mostly by small holder farmers. • Livestock: Large number of livestock provide for expanded processing and existence of rangeland provide for pasture and range management • Water bodies (rivers, lakes and ocean) provide for both irrigation, fishery and energy Contribution of agriculture to the national economy • In good years the sector contributes about 95% of food consumed in the country. • In addition the sector employs about 78 percent of the population. Its contribution to GDP is 24.1 percent and export earning is 24 percent. However annual sector growth is averaging at 4.3% which is still below the CAADP target of 6%. Challenges facing agriculture: • Low investment • Limited technical capacity • Limited Physical infrastructure • Institutional Initiatives to address the challenges • National Strategy for Poverty Reduction – commonly known as MKUKUTA(Tanzania Mainland)/MKUZA (Tanzania – Zanzibar), • The Agriculture Sector Development Strategy (ASDS -2001) and Program (ASDP – 2006) • Private Sector - KILIMO KWANZA initiative (2009), • Public- Private Sector investments through Corridor approach – Southern Agriculture Growth Corridor of Tanzania SAGCOT (2011) • CAADP Compliance – pillars and principles CAADP IMPLEMENTATION • On 8th July 2010 the government and stakeholders signed CAADP Compact • The CAADP Compact is operationalized through Tanzania Agriculture Food Security Investment Plan (TAFSIP) that was developed and launched on 11th November 2011. • TAFSIP brings all stakeholders in the agricultural sector to a common agenda of comprehensively transforming the sector to achieve food and nutrition security, create wealth, and poverty reduction. • TAFSIP has identified 7 major investment programs: – Irrigation development, Sustainable water resources and land use Management – Production and rural commercialization – Rural infrastructure Market access and Trade – Private sector development – Food and Nutrition Security – Disaster management and climate change adaptation and mitigation – Policy reform and institutional support • In 2012 the United Republic of Tanzania (URT) and the G8 New Alliance for Food Security and Nutrition committed to work together to generate greater private investment in agricultural development, scale innovation, achieve sustainable food security outcomes, reduce poverty and end hunger. G8 New Alliance Policy Progress 1. Increase stability and transparency in trade policy….. • Maize export ban already lifted to facilitate Global and intra-African trade. • Efforts are now towards establishing a more stable and transparent trade regime that reduces tariff and non-tariff trade barriers. • A comprehensive food security study is being carried out to inform future decisions on food security and nutrition policy • Development partners are supporting Ministry of Agriculture to: strengthen food security calculations and analysis, providing analysis of stockholdings and the National Food Reserve Agency, investigating best practices for social safety nets in the event of future food crises, and considering ending the use of export permits. Analysis on food reserves and safety nets has began and recommendations will be presented to the Government in August 2013. 2. Improved incentives for the private sector….. • Lifting of Crop Cess:NTC initial analysis in 2012 Alternative sources of LGA funds being explored Amendment of local financing act underway • VAT waiver on farm implements – achieved in 2012 • Smallholders land rights – establishment of village land boundaries & acceleration of land use planning, survey and allocation in the sugarcane sub-sector • Facilitation of transparent land allocation to investors in the SAGCOT – Tanzania investment Centre (TIC), Rufiji Basin Development Authority (RUBADA) & task force for land identification for investment in the sugarcane sub-sector 3. Develop and implement domestic and regional seed & other input policies • Tax waiver on seeds – Assessment for elimination complete • Union of Protection of Varieties (UPOV) compliant Plant Breeders Rights Act passed in 2012 • Fast-tracked release of imported seeds • Public-Private Partnerships in production of foundation seeds exist • Preparation of seed systems compliance plan for international standards like International Seed Testing Association (ISTA) & OECD 4. Implementation of harmonized nutrition policy • Aligned the nutrition strategy with the nutrition policy • Cooperation framework roadmap – policy oversight committee is in place chaired by the Prime Ministers Office • Country Nutrition Focal Points in every Ministry and at District Level already appointed OVERARCHING CONSTRAINTS • Poor coordination and communication across different platforms • Poor coordination of data collection and M & E activities by different parties • Inadequate resources to effectively implement some policy reform activities • Slow pace of private sector to take lead in commercialization and policy engagement • Slow pace for policy implementation caused by legal frameworks and procedures.