AGRICULTURE

TANZANIA
Tanzania has made great strides in economic growth in the last two decades, registering an average
annual GDP growth exceeding 5 percent. Tanzania joined the group of lower middle-income countries
recently by attaining a per capita annual income of $1,210. However, poverty reduction is slower than
economic growth, and malnutrition remains high. To help Tanzania achieve the second Sustainable
Development Goal to end hunger, promote sustainable agriculture, and achieve food security and
improved nutrition, USAID is partnering with the Government of Tanzania (GOT), private sector,
NGOs, and other donors.

Tanzania’s agriculture sector—which contributes nearly one-third of the country’s GDP and employs
over two-thirds of the population—has the potential to increase incomes and improve livelihoods. The
Global Food Security Strategy (GFSS) – the United States government’s global hunger and food security
initiative – supports plans developed with GOT to reduce poverty and improve agricultural growth,
nutrition, and resilience. USAID makes targeted investments, including private sector development, to
ensure long term sustainability of poverty reduction and agricultural growth. These investments
help smallholder farmers be more competitive in producing and marketing staple foods and
increasing production of horticulture products (vegetables and fruits). USAID/Tanzania’s agricultural

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work is aligned with Tanzania’s Country Investment Plan under the pan-African Comprehensive Africa
Agriculture Development Program and the GOT’s Agriculture Sector Development Program.

The GOT is focusing on agriculture to achieve economic growth; however, over the past several years
the rate of agricultural growth has remained low at roughly four percent.

These investments help smallholder farmers be more competitive in producing and marketing staple
foods and increasing production of horticulture products (vegetables and fruits). USAID/Tanzania’s
agricultural work is aligned with Tanzania’s Country Investment Plan under the pan-African
Comprehensive Africa Agriculture Development Program and the GOT’s Agriculture Sector
Development Program. The GOT is focusing on agriculture to achieve economic growth; however, over
the past several years the rate of agricultural growth has remained low at roughly four percent.

To improve nutrition, Feed the Future promotes the consumption of high-quality nutritious foods and
improved food processing techniques such as fortifying flour with micronutrients like iron, vitamin A,
zinc, and folic acid.
Furthermore, private sector investment and policy initiatives improve the business enabling
environment to promote agricultural growth. Research activities conducted in partnership with
local institutions help build the capacity necessary for long-term agricultural development.

CHALLENGES
● Climate change poses significant risks of prolonged drought and unpredictable weather,
threatening the livelihoods of subsistence farmers.
● Limited access to productive and financial resources, weak infrastructure, inadequate extension
services, and poor policies reduce incentives to develop the agriculture sector.
● Private sector investment in agriculture is constrained by limited access to long-term capital,
low levels of capacity and business skills, and policies which discourage agribusiness growth.
● Rapid population growth and agricultural expansion pose a threat to Tanzania’s natural
resources that, when managed effectively, support livelihoods and agriculture.

IMPACT
● Value of agriculture-related financing accessed as a result of USG assistance:
$5,047,579 (baseline of 2,076,553).
● Value of annual sales of producers and firms receiving USG assistance: $213,005,960
(baseline of 29,641,330)
● Number of individuals participating in USG-assisted group-based savings, micro-finance, or
lending programs: 11,375 (baseline of 2049)

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