A Quick Snapshot of the Tanzania Agribusiness

A Quick Snapshot of the Tanzania Agribusiness

Tanzania agribusiness, sometimes known as commercial agriculture—the agricultural production business—includes agrichemicals, farm machinery, distribution and crop production, among other things.

Tanzania is estimated to have 1,000 to 2,000 estates and large-scale farms with a size of about 1,100 ha, whereas the nation’s irrigable land is 29 million ha, leaving the sector significantly underutilized.

This is because smallholding crop farmers have limited access to contemporary agricultural inputs and technologies, as well as inadequate storage facilities, high marketing and transport costs, poor adoption and technology, and a shortage of inexpensive inputs such as quality fertilizer and better seed.

Together with commercial agribusiness investors and development partners, the Tanzanian Government is trying to solve these difficulties by strengthening linkages between smallholder and commercial farming and building better roads to markets for Tanzania agribusiness.

Tanzania Agricultural Development Bank (TADB) was founded by the Government of Tanzania to provide long, medium, and short-term financial facilities for agricultural development in Tanzania.

Vision 2025 Tanzanian Agriculture

Tanzania’s Ministry of Agriculture, Food, and Cooperatives’ 2025 Vision states that the nation intends to establish value addition chains for commodity products and raw materials from basic agricultural production.

Tanzania’s products include Cotton yarn, wheat flour, manufactured tobacco and coffee, sisal goods (twine and yarn), pasta and biscuits, beer, refined sugar, rolled steel, textiles, and other value-added items.

According to the 2025 Vision, a minimum of two new products should be produced from every staple crop, livestock, horticulture crops, and fisheries.

Entrepreneurial Opportunities in Agribusiness Sector in Tanzania


Sugarcane is a prominent commercial crop in Tanzania, according to the Private Agricultural Sector Support (PASS), a program intended to encourage investment in Tanzania agribusiness.

However, sugarcane growing and processing are insufficient to fulfill the country’s yearly sugar demand. The nations sugar consumption grew by more than 16% in 2019, from 610,000 tonnes in the previous year to 710,000 tonnes in 2019.

The Tanzania Investment Centre (TIC) released a notice in April 2020 requesting local and global investors to construct sugar and sugarcane processing plantations on the 20,000-hectare farm in Kibuye, Kigoma area.

Vegetable Oil

According to the Clinton Development Initiative (CDI), there is an increasing need for cooking oil of higher quality, as the country imports more than half of its low-quality vegetable oil from Asia.

Oil Palm

Tanzania’s demand for palm oil is approximated to be 600,000 tons.

The TIC welcomed investors to establish food processing and horticulture industries at the Lugufu farm with a size of 10,529 hectares and Basanza farm with a size of 3,249 hectares in Kigoma’s Uvinza District.

These two farms were set aside by the GoT for palm growing investments to generate palm oil as a solution to the difficulty in edible oil importation and for food.

Other Important Things

Agribusiness companies in Tanzania – https://tanzanialists.com/agricultural-companies-in-tanzania/

For more Agriculture in Tanzania articles click here!

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