Madam Chairperson
Distinguished Governors,
Ladies and Gentlemen,

It affords me great pleasure to address this Governing Council today, though briefly, and like most of the distinguished speakers before me, I would like to extend my congratulations to you Madam Chairperson for conducting the business of this Council quite effectively. Secondly, I wish to join my fellow Governors in congratulating the President of IFAD Mr. Fawzi H. Al Sultan, who is now about to complete his mandate, for meritorious performance during his eight year period as the executive head of this important organisation. On behalf of the United Republic of Tanzania and my own behalf, I would like to express a happy, healthy and successful future after your memorable service to the rural poor comes to an end.

Madam Chairperson,

As we all know IFAD has registered positive contributions in assisting developing countries to enhance their rural economy towards poverty alleviation. In Tanzania, IFAD has supported eight development projects, out of which five (5) projects/programmes have been concluded and three (3) projects are on going, and their implementation status is generally good. One loan programme on Rural Financial Services has recently been signed, and again I am grateful to the Fund for its continued support.

Madam Chairperson,

I wish to take this opportunity to applaud the efforts which IFAD has pioneered in rural development and poverty alleviation. I also wish to state that the United Republic of Tanzania fully supports the focus and specific mandate of the Fund, of which Tanzania is also a beneficiary. The extensive support of microfinance, irrigation and partnership with other development agencies is part and parcel of the strong areas my country would wish IFAD to strengthen. Essentially because we believe that any tangible success in the eradication of poverty and hunger lies in the establishment of strategic partnership and continued cooperation within national and international community.

Mr. Chairman,

In recent years the performance of the Agriculture sector has not been impressive in fulfilling its role as an engine of economic growth for poverty reduction and food security. Between 1985 and 1999 the agricultural GDP has grown at an average of 3 percent per year in particular, the six main food crops which include maize, rice, sorghum, millets, wheat and pulses grew at 3.5 percent and export crops at 5.4 percent per annum. Other components such as livestock, forestry and hunting have recorded lower growth rates of 2.7, 2.6 and 3.4 percent respectively. Considering that the overall growth target for halving abject poverty by 2010 is in the range of 5 – 7 percent, this performance falls short of the needed growth.

At the national level and as a way forward, Tanzania has prepared the Tanzania Assistance Strategy (TAS) initiative and the Poverty Reduction Strategy Paper (PRSP). Both papers have addressed the main constraints of the agriculture sector, namely:

i) Poor rural infrastructure: There is inadequate investment in rural roads, water supply, transportation, storage, communication, electrification and irrigation schemes which are critical to stimulating agricultural production. As a result of the inadequate investment and poor state of the infrastructure, in particular poor rural roads, limit farmers’access to markets for inputs and products.

ii) Low investment in the sector both government and private sector. Tanzania has 43 million hectares suitable for agricultural production, but area under cultivation is only 6.5 million hectares for a population estimated at 30 million.

iii) Limited capital and access to financial services.

iv) Inadequate support services, which are vital to agricultural research, extension services, veterinary services, agricultural information services and plant protection.

v) Poor transfer of knowledge from researches to farmers.

vi) Decline in the use of improving seed, fertilisers and agrochemical.

vii) Volatile international markets.

viii) Dependence on erratic rained agriculture. Out of the cultivated land of 6.5 million hectares, only 150,000 hectares are under irrigation, while the potential estimated at a minimum of 1 million hectares.

ix) HIV/AIDS threat that has tended to erode the nations’ manpower.

Madam Chairperson,

In respect to the above the Government through the Ministry of Agriculture and Food Security is currently developing an Agricultural Sector Development Strategy, which will be the Government principal guide for the development of the agricultural sector, and thus an input to the Rural Development Strategy, under preparation.

Madam Chairperson,

Other specific measures to ensure food security and improved nutrition status of the people will include promotion of effective private sector participation in production, processing, input supply and marketing as well as promotion of cross-border trade with neighbouring countries, consequently strengthening our participation in regional cooperation such as Southern African Development Cooperation (SADC) and the newly formed East African Cooperation (EAC).

Madam Chairperson,

The United Republic of Tanzania has noted with keen interest the Fund’s initiative to establish the Process Re-engineering exercise that has led to the streamlining of the project development cycle and systematic introduction of participatory design and implementation methodologies. This effort has resulted in a lower unit cost for project delivery and the number of loans approved. Therefore Tanzania, strongly supports IFAD’s increased diversification of its operations to respond to the needs of the rural poor, calling for a careful balance between rural infrastructure, grass-root resources and microfinance.

Madam Chairperson,

Tanzania also welcomes the Fund’s plans to "leverage" the resources of other stakeholders operating in the rural areas of the developing world. This is the best way to have major impact on rural poverty. In order to support such changes, Tanzania believes there is an urgent need to ensure that a favourable national policy environment prevails. Tanzania has and will continue to maintain a conducive national policy environment for the Fund and other development partners in the struggle to eradicate hunger and poverty.

Madam Chairperson,

With regard to the Proposed Budget for the year 2001, Tanzania has noted with concern that the budget has declined. The Fund is to continue with its operation with meagre resources. This is indeed a major stumbling block in the activities of the Fund. I therefore wish to take this opportunity to urge member states to keep up to their financial commitments to the Fund, in order to meet the growing demand.

Madam Chairperson,

To conclude, on behalf of the Government of the United Republic of Tanzania and on my own behalf, let me assure the Council, of Tanzania's full commitment to further the collective international efforts in poverty alleviation with the objective of attaining agriculture development.

I thank you for your kind attention.