Agriculture in Tanzania - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Agriculture in Tanzania - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Tanzanian agriculture market is projected to register a CAGR of 4.2% during the forecast period (2021-2026). The impact of covid-19 affected the production and processing of food, especially for labor-intensive meat and dairy processing plants. The value addition activities were affected negatively as disrupted supply and distribution channel tends to lower the end-products. As overall logistics are slowed down, food safety and quality affected negatively. Agriculture is the major backbone of the country's economy. Hence, structural measures are taken to boost agricultural production in the country with the support of public-private partnerships. Fruits hold a prominent share, owing to liberalization policies supporting its exports. Bananas, mangoes, oranges, pineapples, and watermelons are the major fruits produced in the country. Thus the private sector investments, favorable government policies, and trade agreements with the neighboring countries are driving the market during the forecast period. Tanzania is one of the largest cashew producers in Africa, with exports providing 10.0%-15.0% of the country's foreign exchange. It mainly grows in the southern regions of the country such as Matwara and Lindi, and more than 90.0% of the nuts are exported in raw form. The raw nuts are mainly exported to India for processing due to a very small processing capacity domestically. This in turn drive the agriculture market in the country.

Key Market TrendsFavorable Government Policies Supporting the Market Growth

Agriculture is Tanzania's economic mainstay, contributing nearly to one-fourth of its GDP and more than 50.0% to total employment. The recent transformation in the agricultural sector is offering opportunities for acceleration of growth, job creation, and poverty reduction. The government is planning to incorporate private sector engagement, including the Southern Agricultural Growth Corridor of Tanzania initiative, a public-private partnership to increase the investments in the region. Further, the research activities conducted in collaboration with local institutions help to build the necessary capacity for long-term agricultural development. Thus, the private sector investment and policy initiatives are enabling the agriculture market growth during the forecast period.

Increased Production of Banana is Driving the Market

In the country, fruit sector dominates the market with majorily grown fruits like Bananas, mangoes, oranges, pineapples, and watermelons. The market for banana is developed in the country, owing to both export and local demand by the consumers. Tanzania and Uganda alone produce over 50% of all bananas grown on the entire African continent. The market is flourishing, owing to the increased consumer demand, and thus organizations are putting efforts to produce new varieties. For instance, the Tanzania Agricultural Research Institute developed 16 new drought- and disease-resistant banana hybrid varieties in the three predominantly banana-producing regions of Mbeya, Kilimanjaro, and Kagera. This, in turn drive the demand for banana production in the country.

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Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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