Tanzania’s main development objectives, outlined in various strategies such as the National Strategy for Growth and Reduction of Poverty (NSGRP II) 2010/11–2014/15, are: (i) to become more competitive and achieve inclusive growth and poverty reduction; and (ii) to improve the quality of life and social well-being for Tanzanians. Robust growth in agriculture is recognized by the government as central in achieving these objectives and ensuring food and nutrition security. However, according to MAFAP Public Expenditure analysis, the share of overall budget going to food and agriculture has been declining since 2009 and to below the minimum 10 percent target established under the Maputo Declaration, and what is considered necessary to achieve six percent agricultural growth.

As the Tanzania Agriculture and Food Security Investment Plan (TAFSIP) 2011 recognizes, sustainable agricultural development requires an enabling environment for private sector investment and long-term productivity enhancement. To this end, rural infrastructure, including roads, water, and energy accounted for 34 percent of the public expenditures toward food and agriculture.

Increased benefits to producers, mainly in the form of variable inputs such as seeds, fertilizers and credit through the National Agricultural Input Voucher System (NAVIS) (2008-2014), present an opportunity cost to the government’s investment in long-term productivity. Furthermore, production subsidies are being offset by trade restrictions and price policies as frequent export bans were imposed on maize to ensure food security and stabilize prices. However, this policy tends to suppress prices, which reduces farmers’ incentives to produce maize.

Paddy rice producers are receiving prices higher than the international equivalent, consistent with the government’s policy of protecting farmers from imports which has helped foster an increase in rice production. However, high prices at the farm gate resulted in higher prices for consumers which could compromise food security. Improving market access, storage and production systems could transform the sector, making rice more affordable for consumers and more competitive in regional markets.

Since the introduction of a warehouse receipt system (WRS), cashew producers have received increased incentives. However, the structure of the blind bid system promotes export of raw nuts, thereby counteracting the objective to increase domestic processing. Despite a continual increase in taxes on raw nut exports, the ratio of unprocessed to processed nuts has increased.

*Public expenditure indicators for Tanzania are provisional. 

For additional information on the indicators shown in the graphs and the terminology used, please refer to MAFAP’s Glossary on Public Expenditure and Methodological Guidelines - Volume II - Public Expenditure. For detailed information on the data provided, please go to the MAFAP database.