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Agriculture
Agriculture accounts for nearly half of Tanzania’s GDP and employs the vast majority of Tanzania’s rural population, which accounts for 80 percent of Tanzania’s total population. Subsistence farming continues to dominate the rural sector and is the primary source of livelihood for approximately 45 percent of the population. The average plot size ranges from 0.9 to three hectors, and 90 percent of agricultural land is non-mechanized, cultivated by hoe (70 percent) or ox (20 percent).
Staple crops are the centerpiece of rural production, although cash crops are growing at a faster rate, indicating that they will become an increasing source of income in the rural sector. Corn is by far the most important crop, accounting for 20 percent of Tanzania’s GDP. Other staple crops include rice/paddy, beans, cassava, sorghum, and wheat. Cash crops, predominantly coffee, cashew, cotton, tobacco and tea, account for approximately five percent of Tanzania’s GDP.
Tanzania has far from reached its agriculture potential. There are 43 million hectares suitable for agricultural production, but only 6.5 million hectares are under cultivation. Although agriculture exports have increased over the last few years, much of Tanzania’s production never reaches market, in great part due to poor infrastructure.
General macroeconomic reform efforts to liberalize Tanzania’s agriculture sector occurred predominantly between 1986 and 1995. In parallel with its withdrawal of control over the agriculture sector, however, the Government withdrew much its support funding. As a result, the agriculture sector has in many ways declined over the last 15 years. The current administration has placed significant emphasis on rural and agricultural reform with the goal of reversing this trend.
This chapter discusses the major laws, institutions, and social dynamics pertaining to agriculture in Tanzania. It is intended to supplement the many points relating to agriculture and the needs of rural communities found throughout the remaining chapters in this report. In short, the importance of agriculture in Tanzania’s economy cannot be understated.
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