John Mashaka
Member
- Feb 6, 2013
- 40
- 91
Agriculture has bankrolled Tanzanian economy for a long time, contributing as much as 27.8 per cent of the gross domestic product (GDP).It remains potentially the most lucrative sector of the economy. The lingering question is whether the sector can alleviate Tanzanias economic burden by offsetting the current negative balance of payment.
With the nation at Sh22 trillion in debt, offsetting balance of payments (BoP) could be a tricky one, unless each and every able individual engages in productivity. The agricultural sector seems to be the only viable option that can employ every able bodied individual. Tanzania has vast arable land, which is rapidly falling in the hands of foreigners engaged in farming not for the benefit of the local economy, but rather, to provide raw material for their industries and food security for their people
After independence, Tanzania became a manufacturing hub. Cotton farmers had a ready market for their produce. Textile mills - Mwatex, Sunguratex and the like - created thousands of jobs to urban dwellers and were a source of steady income for farmers in rural areas. The surplus raw material was processed and exported to foreign markets.
Today, all the textiles and cotton processing factories are literally gone while large-scale cotton farming has been abandoned because farmers have no motivation to work. In the sixties and seventies, Tanzanias economic potential was much higher than that of many nations in the red-hot economies in Asia such as South Korea, Singapore, Vietnam, Malaysia and others.
In contrast, Tanzania is three times the size of Vietnam with only 45 million people while the Vietnam population stands in excess of 88 million. Vietnam recorded a current account surplus of $246 million in 2012 while Tanzania recorded $250 million deficit in the same year. Why such a huge contrast when Tanzania has much more potential than Vietnam?
Beginning in the 1990s, the Vietnamese government launched a special program, which elevated the countrys agricultural standing to higher heights making it the worlds leading rice producer and exporter. In 2010, Vietnam broke the barrier and became the largest rice producer. The new policy became so successful that Vietnam eliminated internal food scarcity and today has plenty to export. Agriculture contributes 22 per cent into Vietnamese GDP. Agriculture has revolutionized the countrys economy, following the footsteps of giants such as South Korea in becoming a global manufacturing hub.
Vietnam processes its own agricultural produce, and only exports finished products, a move that has kept unemployment at 4.3 per cent and inflation at 4.5 per cent. In Tanzania, rural farmers are suffering extreme bouts of apathy and are no-longer motivated to carry on large scale farming. This is because they lack sufficient and organized markets for their produce. They lack capital, farm inputs, and an infrastructural base that would enable them access both domestic and foreign markets.
Elsewhere, tiny Netherlands is racking-in $79 billion annually from agriculture. Ironically, Tanzanias agricultural potential is well over $90 billion, dwarfing both the Netherlands and Brazil.Tanzania has the potential to feed itself, the entire sub-Saharan Africa, and parts of Europe Sadly, Tanzania is importing tainted rice, receiving spoilt maize as humanitarian assistance when it has millions of hectors either idle or leased to foreign entities.
The country is also importing contaminated fish from Japan, yet cargo-planes are loading tonnes of fresh fish from Mwanza to Eastern Europe at a throw away price. Tanzania dairy farmers are selling milk cheaply to some neighboring countries that process it and then bring it back into our domestic market as processed dairy products at a higher price. Tanzania need an agricultural revolution that will ensure only processed and finished agricultural-products are exported. Not raw-products that fetches almost nothing in the world market. The revolution must provide tax incentives to farmers and companies that engage in export
To correct the current balance of payment through agriculture, the government must design a revolutionary blueprint, by providing research, technical, financial and farming input assistance to farmers. It must help agricultural traders secure entry into the global market. Quarter System is needed on importation of food and agricultural products to boost local innovation and productivity.
With the nation at Sh22 trillion in debt, offsetting balance of payments (BoP) could be a tricky one, unless each and every able individual engages in productivity. The agricultural sector seems to be the only viable option that can employ every able bodied individual. Tanzania has vast arable land, which is rapidly falling in the hands of foreigners engaged in farming not for the benefit of the local economy, but rather, to provide raw material for their industries and food security for their people
After independence, Tanzania became a manufacturing hub. Cotton farmers had a ready market for their produce. Textile mills - Mwatex, Sunguratex and the like - created thousands of jobs to urban dwellers and were a source of steady income for farmers in rural areas. The surplus raw material was processed and exported to foreign markets.
Today, all the textiles and cotton processing factories are literally gone while large-scale cotton farming has been abandoned because farmers have no motivation to work. In the sixties and seventies, Tanzanias economic potential was much higher than that of many nations in the red-hot economies in Asia such as South Korea, Singapore, Vietnam, Malaysia and others.
In contrast, Tanzania is three times the size of Vietnam with only 45 million people while the Vietnam population stands in excess of 88 million. Vietnam recorded a current account surplus of $246 million in 2012 while Tanzania recorded $250 million deficit in the same year. Why such a huge contrast when Tanzania has much more potential than Vietnam?
Beginning in the 1990s, the Vietnamese government launched a special program, which elevated the countrys agricultural standing to higher heights making it the worlds leading rice producer and exporter. In 2010, Vietnam broke the barrier and became the largest rice producer. The new policy became so successful that Vietnam eliminated internal food scarcity and today has plenty to export. Agriculture contributes 22 per cent into Vietnamese GDP. Agriculture has revolutionized the countrys economy, following the footsteps of giants such as South Korea in becoming a global manufacturing hub.
Vietnam processes its own agricultural produce, and only exports finished products, a move that has kept unemployment at 4.3 per cent and inflation at 4.5 per cent. In Tanzania, rural farmers are suffering extreme bouts of apathy and are no-longer motivated to carry on large scale farming. This is because they lack sufficient and organized markets for their produce. They lack capital, farm inputs, and an infrastructural base that would enable them access both domestic and foreign markets.
Elsewhere, tiny Netherlands is racking-in $79 billion annually from agriculture. Ironically, Tanzanias agricultural potential is well over $90 billion, dwarfing both the Netherlands and Brazil.Tanzania has the potential to feed itself, the entire sub-Saharan Africa, and parts of Europe Sadly, Tanzania is importing tainted rice, receiving spoilt maize as humanitarian assistance when it has millions of hectors either idle or leased to foreign entities.
The country is also importing contaminated fish from Japan, yet cargo-planes are loading tonnes of fresh fish from Mwanza to Eastern Europe at a throw away price. Tanzania dairy farmers are selling milk cheaply to some neighboring countries that process it and then bring it back into our domestic market as processed dairy products at a higher price. Tanzania need an agricultural revolution that will ensure only processed and finished agricultural-products are exported. Not raw-products that fetches almost nothing in the world market. The revolution must provide tax incentives to farmers and companies that engage in export
To correct the current balance of payment through agriculture, the government must design a revolutionary blueprint, by providing research, technical, financial and farming input assistance to farmers. It must help agricultural traders secure entry into the global market. Quarter System is needed on importation of food and agricultural products to boost local innovation and productivity.