Tanzania's horticulture sector is emerging as a key growth area within the country's agricultural economy. In the year ending March 2024, exports of horticultural products reached US$417.9 million, an increase of 40.6% compared to the previous year. Since 2014, exports have shown consistent annual growth, and the sector's share of total agricultural exports rose to 38% in 2022.
High-value crops such as avocados, spices including cloves and black pepper, and fresh vegetables are driving diversification. This performance is linked to the national Agenda 10/30, which seeks to achieve a 10% annual agricultural growth rate by 2030 and sets a target of US$2 billion in horticultural export earnings. The plan, developed with the Tanzania Horticulture Association (TAHA), has been supported by increased government funding, including a 30% rise in the Ministry of Agriculture budget for 2023/24. Policy measures include tax exemptions on agricultural machinery and inputs, as well as initiatives such as "Building a Better Tomorrow" (BBT) to involve youth and women in agribusiness.
Despite growth, post-harvest losses remain a major obstacle, estimated at up to 40% of total horticultural production. Contributing factors include poor handling practices, limited processing and storage facilities, and a weak cold chain. While projects such as the planned "Green Terminal" with cold storage at Dar es Salaam port are underway, inland logistics continue to hinder exports. A shortage of refrigerated trucks and poor rural road conditions cause products to spoil before reaching markets or export hubs.
To address these challenges, investment in decentralized cold storage facilities near production zones has been proposed. Such infrastructure would allow farmers to reduce losses and store produce until market conditions improve. The government's recent acquisition of a cargo aircraft is viewed as a step toward improving export logistics, though additional medium-sized cargo planes and streamlined export procedures are still required.
Further development in value addition is also seen as essential. Processing horticultural products into dried fruits, juices, and spices could increase export earnings and create jobs. Modern farming practices, including precision agriculture and climate-resilient seeds, will be needed to boost productivity and mitigate climate risks. Extension services are expected to expand through digital platforms to provide farmers with market, weather, and agronomic information.
Financial institutions are being called on to develop tailored financing models, ranging from microloans for smallholders to larger investments in processing and logistics.
According to the government and industry partners, achieving the Agenda 10/30 targets will require coordinated investment in infrastructure, technology, and human capital.
Source: IPP Media