Horticulture Exports in Tanzania: A Review of Possible Influencing Factors

Abstract

The study assesses performance of horticulture exports in Tanzania, while identifying potentials and challenges for growth, largely employing interview and desk review approaches. The findings indicate that horticulture is one of the fastest growing agriculture sub-sectors, with an average growth rate of 4.9 percent in the past eight years to 2019. The share of horticulture to total agricultural/traditional exports has been increasing over time as well, reaching 33.5 percent in 2020, while employment in the sub-sector is estimated at 4.5 million people.

The achievements notwithstanding, about 90 percent of the horticultural produce is consumed locally, probably pointing to potential for increasing exports. Horticulture exports continue to exhibit volatility, mainly driven by fruits, which accounted for about 77.2 percent of the output during 2013 to 2019. Exporters largely rely on foreign agents in reaching final consumers, which constrains market diversification due to prior contracts. Other challenges facing the sub sector include high reliance on rain-fed agriculture, low quality seeds, disease and pest attacks, prolonged transportation process, inadequate quality storage facilities at product collection centres and export exit points, multiple taxes, and difficulties in accessing long-term credit.

Potentials exist for boosting horticulture export growth. This mainly depends on the extent to which challenges facing the sub sector are addressed, and exporters tap into available opportunities including improving policy, strategic and institutional support; improving transport logistics; unutilized arable land; and growing demand for horticulture products worldwide. To increasing further horticulture exports growth, the study recommends the need for:

Scaling up the efforts to attract more cargo flights and improving storage facilities (park houses) at the export exit ports as well as enhancing ease cargo clearance processes. The government’s move to acquire a cargo plane and upgrade facilities at the major international airports can contribute in addressing this challenge; Facilitating direct access to foreign market by Tanzanian exporters; this role can partly be performed by the Tanzania’s embassies abroad; Encouraging production of high value products such as avocado, cloves, black pepper, and cardamom; Promoting product certification and branding to market ‘destination Tanzania’ for the horticulture products; Encouraging and supporting exporters to tap into regional markets by fast tracking improvement of road and air connectivity to the potential markets and providing on time the relevant trade information; Increasing awareness to potential farmers and traders on export procedures and ensure timely availability of market information as a way of attracting new investments in the subsector; and Ensuring that land reserved for investors also benefits the horticulture subsector. Efforts could also be directed at enhancing irrigation systems, timely availability of high yield seeds and pesticides, and extension services to not only increase production for exports but also improve products quality. Some production incentives may be provided to attract the growing micro, small and medium enterprises in the subsector, partly under contract farming to benefit from the more established companies. Such incentives may be in the form of subsidies, tax reliefs, and access to affordable loans as done in other peer countries.