Tanzania

The Context

The United Republic of Tanzania is a lower-middle-income country with an economy anchored in manufacturing, tourism, agriculture and financial services. The country aspires to achieve middle-income status by 2050 and is recognized as one of the strongest economies in sub-Saharan Africa, as well as a leading growth performer in East Africa.

Although it has made significant advances, nearly 26 million Tanzanians lived in extreme poverty as of 2022. The population is estimated at 62 million, with 65.5 per cent residing in rural areas and 75 per cent under the age of 35.

Despite its important economic role, Tanzania’s agriculture sector remains underdeveloped. Primarily made up of small-scale farmers, the sector plays a crucial role in alleviating rural poverty and has the potential to ensure equitable economic growth, leaving no one behind. It contributes approximately 28 percent of the GDP and employs 61 per cent of the workforce, with nearly half of the country’s land designated as agricultural. However, 80 per cent of agricultural production is derived from subsistence farming, which relies heavily on manual labor and rainfed methods and is particularly vulnerable to climate variability.

The Strategy

IFAD is working with the government to transform Tanzania's agricultural sector and sustainably raise productivity, profitability and commercialization. IFAD's initiatives aim to boost incomes for small-scale farmers, strengthen climate resilience, enhance market access with a focus on women and youth, and improve nutritional outcomes. We concentrate on two strategic objectives:

• Enhancing climate-resilient production systems to increase the productivity of crop, livestock, and fishery value chains.
• Improving small-scale producers’ access to markets and micro, small and medium-sized enterprises.