The Context

United Republic of Tanzania is an emerging economy with high potential, having made strides in economic and structural reforms. Despite this, one in two Tanzanians continue to live on less than US$ 2.00 a day, with poverty most prevalent in rural areas. The country has an estimated population of 62 million, with 65.5 per cent residing in rural areas and three in four people under the age of 35.

While tourism is the top foreign exchange earner, the agriculture sector, which is largely made up of smallholders, has not benefited from the same momentum. It requires targeted investment and modernization of high yielding value chains.

The agriculture sector contributes about 28 per cent of GDP and employs about 61 per cent of workers. Almost half of the country’s land is classified as agricultural land.

About 80 per cent of agricultural production comes from subsistence farmers who rely on manual cultivation and rainfed production, making them highly vulnerable to weather shocks. Tanzania imports significant volumes of cereals and pulses, which could otherwise be produced nationally.

The Strategy

IFAD is working with the government to transform Tanzania’s agricultural sector – including crops, livestock and fisheries – to achieve higher and more sustainable productivity, profitability and commercialization. We also aim to increase smallholder farmer incomes, enhance climate resilience, improve access to markets and improve nutrition.