Agricultural Transformation in Tanzania

Agriculture remains a key sector of the Tanzanian economy, accounting for about 30 per cent of GDP and nearly three-fourths of employment, but the sector has low measured productivity, and rates of productivity growth appear to be low. In the past, Tanzania’s agricultural policies have focused heavily on increasing production at the farm level—whether through collectivization in the early postcolonial period or through smallholder systems, in the more recent era of Kilimo Kwanza. By contrast, this chapter suggests that there may be potential for alternative policies that emphasize the development of rural–urban links and domestic value chains to meet emerging urban demand. At the moment, urban food needs are met in large part through imports of processed and semi-processed foods. With appropriate development of the processing, packaging, distribution, and retailing systems, Tanzania could open new pathways for agricultural development.