by David Brewin

Politics and outdated livestock keeping
In a recent article by a (Tanzania) Guardian editor, views were expressed on the age-old clashes which occur between farmers and livestock keep­ers in Tanzania. This followed incidents in Kiteto district in October when four people were said to have been killed after a pastoralist was grazing his cattle on a neighbouring cassava farm.

Home Affairs Minister Mathias Chikawe said it was high time the political class met and agreed amicably on a solution. The editor went on: “The sense of law among livestock keepers is basically religious. The clan head, who conducts sacrifices or orders others to do so, would be the person to issue orders; not someone else. If one of them is arrested they can storm the remand prison or give bribes. They have more money than the peasant farmers… The situation was easier when Tanzania’s population was much lower and there was plenty of land for livestock keepers….with most land now under one or other form of use and grasslands much fewer, owing to deforestation and poor rains, to expect that habits built up over millennia can be ended by discussion is a forlorn hope. The government has to think up ways to end the present mode of livestock keeping and not rely on the stakeholders to solve the problem themselves.”

GM Crop controversy continues
The controversy about the use of genetically modified crops continues all over Africa. Only in South Africa, Burkina Faso and the Sudan can they be cultivated legally. Yet in 28 countries around the world and on 11% of the arable land, the growing of such crops has become the norm. About 90% of the maize, cotton and soya beans grown in the USA are now genetically modified. From the 1960s to the 1990s, yields of rice and wheat in many parts of the world have doubled; the average consumer began to take in a third more calories; and the poverty rate was cut in half. When Norman Borlaug, the famous plant breeder, won the Nobel Peace Prize in 1970 the citation read ‘More than any other person of this age he helped provide bread for a hungry world’.

Tanzania however still stands back, claiming that there are safety and environmental effects. Advocates of this view, quoted in the October issue of the National Geographic Magazine, say that expensive GM seeds represent a ‘costly input to a broken system’. Heavy-input agri­culture has no future: ‘We need something different. There are other ways to deter pests and increase yields that are more suitable’.

Horticultural exports booming
Horticultural exports from Tanzania, mainly of cut flowers, rose by 86% between January and June 2014 compared with the same time in 2013. Horticulture now claims to be the third source of foreign exchange after tourism and mining. The boom has been greatly assisted by Kenya’s action in lifting its ban on flowers and the levy on vegetable exports from Tanzania through Nairobi airport.

Illegal forest products
According to a study published by the Tanzania Natural Resources Forum (TNRF) and the East African Wildlife Society (EAWLS) the Kenya-Tanzania border is one of the most active transit routes for both legal and illegal movement of forest products. The Horohoro-Lunga border is said to be the main entry point for timber, charcoal and wood for carvings and some transporters are said to be falsifying documents, undervaluing their products or using unofficial routes to evade inspec­tion and taxation both in Kenya and Tanzania.

More fertilisers
By the end of 2015 a Norwegian firm Yara International (formerly Norsk Hydro) hopes to open a new $20 million 45,000 tonne fertiliser terminal as part of Tanzania’s Kilimo Kwanza project. This should help Tanzanian farmers to protect themselves from expensive imports. The project targets 350,000 hectares of land to be put under commercial production.

Blast fishing ‘getting out of control’
Blast fishing is illegal in Tanzania but still prevalent. Fishermen use locally obtainable fertiliser mixtures and small fuses to make explosives, which are then dropped overboard. The underwater shock waves stun the fish, rupturing their swim bladders so that they float to the surface and can then be easily swept in nets. There are fears that, unless this practice can be stopped, the artisanal fishing industry could collapse, more fishermen might be injured by the explosives and those fishermen caught by the police will continue to have to pay bribes to avoid going to prison. It is estimated by ‘Smart Fish’, a fisheries programme funded by the EU, that the profit made on each blast can be as high as $1,800.

by David Brewin

Land Tenure Support Programme
A new land tenure support programme is being helped financially by Britain’s DFID, Sweden’s SIDA and Denmark’s DANIDA. The project will help Tanzanian farmers to have better access to agricultural knowledge, technologies, marketing systems and infrastructure. It will also aim to make Tanzania’s agricultural economy become more productive and profitable.

Tanzania’s current land policy supports the recognition of existing land rights and security of tenure for all and this project is designed to establish a more effective economic and transparent system of land tenure. Under existing legislation, one of the key mechanisms for determining tenure is the division of lands into three categories: village land which is held by the villages and represents approximately 70% of the land mass; reserved land (28%); and, the remainder which is administered by the Minister for Lands.

The project aims to build a basis for resolving the issues that limit the contribution that the land sector can make to achieve the country’s broader development goals. The project will enhance the benefits from large-scale land deals and improve dispute settlement procedures. There will be two pilot districts.

Sugar surplus
At the beginning of this year a new financial problem hit Tanzania’s sugar industry. Large quantities of cheap and illegal sugar imports began to flood the country. The quantity was estimated to be some 100,000 tonnes and the local market was destabilised. By March, Tanzanian sugar producing factories were holding 68,000 tonnes of sugar that they could not sell. In April, Tanzania’s Revenue Authority seized 15 tonnes of contraband sugar from Brazil which had been imported through Bagamoyo.
The situation is complex as the Tanzanian Sugar Board has been quoted in the East African as stating that Tanzania now consumes 590,000 tonnes annually although the country’s four local plants are capable of supplying only 290,000 tonnes. The gap is filled by cheap imports but these appear to have been arriving in excessive quantities recently. President Kikwete has spoken of Tanzania’s plans to build 12 new sugar factories by 2030.

by Paul Gooday

Fear mounts as government plans to tax basic agro-inputs
The government intends to tax basic agricultural inputs, raising concerns about its commitment to transform the key economic sector. Over 300 essential modern agricultural technologies and supplies critical for farming mechanisation will be removed from the list of the zero-rated value added tax items, through the VAT Tax Bill of 2013. The VAT Bill, to be brought to the National Assembly in 2014, will only exempt 17 items.

Fertiliser is among the items to be removed from the zero-rated list. This means that fertiliser, which is already considered expensive by most smallholder farmers, will soar to TSh94,400 up from TSh80,000 per 50kg bag. Due to its high costs, the level of fertiliser use in Tanzania is as low as 7kgs nutrients per hectare, compared to 27 kg nutrients per hectare for Malawi and 53kg for South Africa, and well below the recommended minimum of 50kg of nutrients per annum.

Other items to be removed from VAT exemption include irrigation and water harvesting technologies; pest management products and plant protection substances, especially chemicals and biological control agents; special planting materials like plastic bags and seed trays; storage, post-harvest and cooling facilities and equipment such as refrigerators; materials for construction and expansion of farm infrastructure including greenhouses; and packaging materials of all kinds.

Should the Bill be passed a standard 18% VAT will be applicable on agricultural inputs, and will result in higher costs of production, reduced investment, lower production and potentially food insecurity. Farmers say that the move will discourage agricultural mechanisation and make the country less attractive to investors. Local produce will become uncompetitive in the world market and will drive an inflation upsurge.
(The Citizen)

Unilever 110 Million Euro Agricultural Investment in Tea Production
Unilever has chosen the Southern Agricultural Corridor of Tanzania (SACGOT) to expand its tea production. The planned investment will triple Unilever’s production of tea from smallholders and is expected to generate significant export revenue, projected at €110 million. As a partner of Tanzania’s SAGCOT initiative, Unilever will ensure that its investment also addresses social economic and environmental goals. The investment will promote development in the Iringa and Njombe regions by creating 10,000 jobs, enhance the livelihoods of another 2,000-3,000 tea small holders, and in total, touch the lives of an estimated 50,000 people. Unilever has signed an agreement with the Ministry of Agriculture, the Tanzania Tea Board and the Tanzania Smallholder Tea Development Agency, to progress the development of the project in line with the government’s social and economic aspirations. (Tanzania Invest)

by Paul Gooday

National Irrigation Act 2013 to improve food security
Agriculture forms the bedrock of Tanzania’s economy – it accounts for more than one quarter of GDP, provides 85% of exports, and employs about 80% of the workforce. Yet while the country currently has 29.4 million hectares of land that could be irrigated, only 589,245 hectares are actually being irrigated.

The National Irrigation Act 2013 is intended to give agriculture a new lease of life as global weather patterns change. In order to protect the farmers from extreme weather patterns and climate change, Tanzania’s parliament has passed this law aimed at improving irriga­tion and thereby food security, and reducing poverty. The Minister for Agriculture, Food Security and Cooperatives stated that by 2015, at least 25% of food production should come from irrigated land.

The new law establishes the Irrigation Commission, a national body with the mandate to co-ordinate, promote and regulate irrigation activities across the country. There will also be an Irrigation Development Fund created to help irrigation schemes, many of which suffer from financial strain at present. This fund will be used to finance irrigation activities carried out by individual farmers and investors through loans or grants. The law will also establish a system enabling farmers’ groups, individuals, associations and companies to own government-built irrigation infrastructure.

Amendments were made to the initial legislation following concerns raised that it might fuel land conflict. It was argued that this would allow the state to acquire village land without due process. This threat of “land grabs” has been mitigated by ensuring that “communities are key stakeholders not mere spectators” said a legislator from the ruling CCM. (The East African)

DfID invests in tea plantation
One of the projects of DfID (UK Department for International Development)’s new phase of investment in Tanzania is a £7.5m project investing in tea farming in the southern highlands of Tanzania. DfID said the investment would boost the income of more than 3,600 tea farmers in 27 villages.

A further £6.7m will be invested in Kilombero Plantations, a public-private partnership focused on developing the region’s agricultural potential and fostering inclusive, commercially successful agribusinesses aimed at benefitting small-scale farmers. DfID will also sign a £2.5m agreement with Tanzania Electric Supply Company to build a hydropower plant that is expected to boost energy production at Tanzania Tea Packers.

The Secretary of State for International Development, Justine Greening, explained that these agreements are not about bringing back tied aid. “The onus will continue to be on British companies to show Tanzania, and other developing countries, why their offer is the best one – and I believe they are well placed to do this. The UK has been amongst the international leaders in corporate governance.” (The Guardian – UK)

Call for profitable livestock keeping
The Mara Regional Commissioner (RC), has encouraged herders to realise the benefit of dipping livestock as a means to help make the sector more profitable allowing them to transform their lives.

“I consider livestock keeping as one of the most important things,” he told herders at the rural village of Surubu in the Northern Tarime District recently. He visited the village cattle dip and pledged to support a group of herders taking care of the dip. “Cattle dipping will help prevent ticks from attacking cows, hence improve livestock products,” he explained. He also emphasised the importance of adapting livestock artificial insemination in the region. “Our aim is to invite investors on livestock products and we want the people to change from traditional livestock rearing to zero grazing,” he said.

The regional chief was on a three-day working tour of Tarime where he inspected various projects as well as inaugurating the newly formed Tarime Town Council. There was a call to continue the drive towards reducing cattle rustling. Tarime has of late emerged as one of the fast developing districts in Mara Region, thanks to government for establishing a special police zone which has greatly helped to make the place safe for people to participate in development issues. (AllAfrica.com)

by Paul Gooday

New Agricultural Development Bank
The Tanzania Investment Bank (TIB) is restructuring, in a change that will see its agricultural lending function transferred to the newly formed Agricultural Development Bank, while its remaining operations will be run by two distinct subsidiaries.

The Finance Minister told Parliament in July that the setting up of TIB Corporate, one of the bank’s new subsidiaries, is in its final stages, and that the lending function of TIB would now be the responsibility of the Agricultural Development Bank. This restructuring has been going on since last November, and is aimed at making the government-owned facility more efficient.

The establishment of the new bank is intended to provide short, medium and long term credit to the agricultural sector, which includes lending facilities to fisheries and livestock projects. The corporate structures of the bank have been put in place and government has already disbursed Tsh90 billion ($55.4 million) to enable the bank to start operating.

Development banks in the East African region, particularly government-owned ones, provide credit for specific functions or to under-served sectors as well as to consumers not served by mainstream lenders. (The East African)

Tanzania and Clinton Foundation sign agriculture pact
The government and the Bill Clinton Foundation have signed an agree­ment under which the organisation led by the former US president will support farmers and the agriculture sector in the country. The initiative will improve access to better seeds and fertilizers by small-scale farmers.

The foundation intends to work closely with the Ministry of Agriculture, Food Security and Cooperatives to ensure that Tanzanian farmers are able to feed the nation and furthermore export their produce to the rest of the world. The memorandum of understanding was signed by rep­resentatives on behalf of government and the foundation with the event being witnessed by Mr Clinton and President Jakaya Kikwete.

Speaking after the ceremony, President Kikwete said the support was targeted appropriately as 75 to 85 percent of Tanzanians live in rural areas and depend on agriculture. Most of this is subsistence and still depends heavily on the use of the hand hoe. “The focus should now be on transforming our agriculture by reducing the use of the hand hoe and dropping dependence on God’s rain,” he said. “With this pro­gramme we shall increase the use of fertilizers and pesticides.”

Mr Clinton revealed that he came from a farming background and said he will dedicate his remaining life to improving the lives of farmers in Tanzania and elsewhere in the world. “We will also establish big farms that can produce better seeds and increase yields,” he said, adding “but we should do everything in our power to make sure that this pro­gramme is sustainable.” Earlier in the day, Mr Clinton visited a village savings and loans assistance society at Vingunguti (Ilala Distict), which is also supported by his foundation. (The Citizen)

Approval for Tobacco Farming in Serengeti
Serengeti farmers have earned billions of Tsh after selling 2,520 tonnes of tobacco, making the villagers of Kebanchabancha and Nyamakendo the leading tobacco producer in Mara region. Production will increase significantly as hundreds of farmers in the region have started cultivating tobaccos.

The Ministry of Agriculture, Food Security and Cooperatives has allowed farmers in three districts to pursue large scale production of the crop. Tobacco farming has been carried out on a trial basis for about three years, and farmers have now been approved by the ministry.

While Tanzania acknowledges that tobacco is one of the most profitable crops, the country is also pursuing sustainable and responsible farming practices in the Serengeti District that consists of 70% game protected areas and the Serengeti National Park. (Tanzania Invest)