Diplomatist Special Report - Tanzania Tanzania 2018 - Page 39

The manufacturing sector has seen rapid growth over the past decade. It is growing at a pace of 8.6 percent per annum in real terms. Manufacturing exports have grown strongly at about 31 percent per annum over the period 2000 to 2010. In Tanzania, the private sector dominates (91%) manufacturing as the 56 State-Owned Enterprises (SOEs) constitute 8 percent of the total manufacturing enterprises. 97 percent of manufacturing entities are micro-enterprises with less than 10 employees; most of these operate in the informal sector. Tanzania has recorded an overall agricultural sector growth in the recent past and is considered self- suffi cient in staple foods at the national level, producing 111 percent of its staple food needs. Agriculture: From the fi elds Agriculture is the main part of Tanzania's economy. Almost 70 percent of the poor population live in rural areas. Agriculture provides 30 percent of GDP, 80 percent of employment and contributes 85 percent of export earnings annually. Crop production in Tanzania is mainly rain-fed and dominated by smallholder farmers, cultivating food crops for domestic consumption with surpluses feeding the towns. The most common food and cash crops in Tanzania are maize, cassava, sweet potatoes, bananas, sorghum, and sugar cane. Tanzania has recorded an overall agricultural sector growth in the recent past and is considered self-suffi cient in staple foods at the national level, producing 111 percent of its staple food needs. According to Tanzania’s Ministry of Agriculture, traditional export crops in Tanzania include cotton, coffee, tobacco, cashews, tea, pyrethrum, and sisal. Raw tobacco represents Tanzania’s most important exported cash crop growing from $ 169m worth of exports in 2010 to $ 318m in 2015, followed by cashews which grew from $ 50m to $ 201m, and coffee from $109m to $ 162m in the same period. The Tanzanian government instituted a series of agricultural reforms in the 1980s-1990s that included market liberalisation, removal of state monopolies and increased reliance on the private sector. In 2004, Tanzania adopted the Agricultural Sector Development Programme (ASDP) as part of its agricultural reform policy which was aimed to transform the agriculture sector from subsistence to export agriculture through the private sector, and achieve a sustained 5 percent growth rate in agriculture. Tanzania Agriculture Development Bank (TADB) which is 100 percent government-owned provides loans at low-interest rates ranging between 8 to12 percent. The overall goal is to improve farmers’access to fi nance so as to guarantee food security and contribute to the transformation from subsistence farming to commercial farming.The government is supporting agribusiness by putting in place strategies and policies. The Government of Tanzania intends to use agricultural development as the main engine towards reaching middle- level income status for the country by 2025. TANZANIA• 39