New Partnership for Food and Agriculture Organization Africa’s Development (NEPAD) of the United Nations Comprehensive Africa Agriculture Investment Centre Division Development Programme (CAADP)

GOVERNMENT OF THE UNITED REPUBLIC OF

SUPPORT TO NEPAD–CAADP IMPLEMENTATION

TCP/URT/2908 (I) (NEPAD Ref. 05/28 E)

Volume IV of VII

BANKABLE INVESTMENT PROFILE

Crop and Livestock Private Sector Development (Mainland)

April 2005

UNITED REPUBLIC OF TANZANIA: Support to NEPAD–CAADP Implementation

Volume I: National Medium–Term Investment Programme (NMTIP)

Bankable Investment Profiles (BIPs) Volume II: Phase II of Madibira Rural Development (Mainland) Volume III: District Irrigation and Water Harvesting Support (Mainland) Volume IV: Crop and Livestock Private Sector Development (Mainland) Volume V: Small and Medium Enterprises in support of Participatory Forest Management (Mainland) Volume VI: Land Management and Development of Irrigation Schemes () Volume VII: Private Sector Development for Agriculture, Forestry and Fisheries (Zanzibar)

NEPAD–CAADP BANKABLE INVESTMENT PROFILE

Country: Tanzania – Mainland

Sector of Activities: Private Sector Development

Proposed Name: Crop and Livestock Private Sector Development

Project Area: National – with four selected zonal foci

Duration: 4 years

Estimated Cost: Foreign Exchange ...... US$1.74 million Local Cost...... US$6.79 million Total ...... US$8.53 million

Suggested Financing:

Source US$ million % of total

Government 0.80 9

Financing institution(s) 4.93 58

Beneficiaries 0.80 9

Private Sector 2.00 23

UNITED REPUBLIC OF TANZANIA:

NEPAD–CAADP Bankable Investment Profile

“Crop and Livestock Private Sector Development”

Table of Contents

Abbreviations...... iii

I. PROGRAMME BACKGROUND...... 1 A. Programme Origin...... 1 B. General Information...... 2 C. Agriculture and the Economy...... 3 D. Constraints and Opportunities for Private Sector Crop and Livestock Development...... 5

II. PROGRAMME AREA...... 7

III. PROGRAMME RATIONALE...... 8

IV. PROGRAMME OBJECTIVES...... 10

V. PROGRAMME DESCRIPTION ...... 10

VI. INDICATIVE COSTS...... 12

VII. PROPOSED SOURCES OF FINANCING ...... 13

VIII. PROGRAMME BENEFITS ...... 13

IX. IMPLEMENTATION ARRANGEMENTS...... 14

X. TECHNICAL ASSISTANCE REQUIREMENTS ...... 15

XI. ISSUES AND PROPOSED ACTIONS ...... 15

XII. POSSIBLE RISKS...... 16

Appendix 1: Map of Project Area...... 19

Appendix 2: List of References ...... 21

NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: Investment Profile “Crop and Livestock Private Sector Development”

Abbreviations

ASDP Agricultural Sector Development Programme ASDS Agricultural Sector Development Strategy ASLM Agricultural Sector Lead Ministries ASP Agricultural Service Providers ASPS Agriculture Sector Programme Support ASSP Agricultural Sector Support Programme BDS Business Development Services BDSP Business Development Service Providers BIP Bankable Investment Profile CAADP Comprehensive Africa Agriculture Development Programme CORMA Client–oriented Research Management Approach DADPs District Agricultural Development Plans EAC East African Community EU European Union FAO Food and Agriculture Organization of the United Nations GDP Gross Domestic Product GoT Government of Tanzania MAFS Ministry of Agriculture and Food Security MCM Ministry of Cooperatives and Marketing MFI Micro Finance Institution MNRT Ministry of Natural Resources and Tourism MSEDA Mtwara Small–scale Entrepreneurs Development Association MVIWATA Mtandao wa vikundi vya wakulima Tanzania MWLD Ministry of Water and Livestock Development NIGP National Income Generation Programme NMTIP National Medium–Term Investment Programme PASS Private Agricultural Sector Support PATTEC Pan African Tsetse and Trypanosomosis Eradication Campaign PRSP Poverty Reduction Strategy Paper RDS Rural Development Strategy ROSCAs Rotational Savings and Credit Associations SADC Southern Africa Development Community SME Small and Micro Enterprise SWAp Sector–wide Approach TDV Tanzania Development Vision TIC Tanzania Investment Centre TMPA Tanzania Milk Processors Association UNCDF United Nations Capital Development Fund WTO World Trade Organisation URT United Republic of Tanzania

iii

NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: Investment Profile “Crop and Livestock Private Sector Development”

I. PROGRAMME BACKGROUND

A. Programme Origin

I.1. Over 80 percent of Tanzanians live in rural areas and depend on agriculture for all or part of their livelihood. Agriculture contributes 50 percent of the GDP and 54 percent of the nation’s foreign exchange earnings. The vast majority of Tanzanians living below the poverty line live in rural areas, and the incidence of poverty in rural areas may be increasing. Agricultural development is crucial to both national economic development and poverty reduction.

I.2. The Agricultural Sector Development Programme (ASDP) provides the government with a sector–wide framework for overseeing the institutional, expenditure and investment development of the agricultural sector. At the heart of ASDP is changing the function of central government from an executive role to a normative one, empowering local government and communities to control their planning processes, and establishing an enabling environment which encourages private sector investment in all aspects of agriculture. ASDP does not replace existing national and local planning and implementation mechanisms. Rather it facilitates the process, highlights priorities and tracks overall progress. The ASDP is a long–term process, and the outcome of recent initiatives to re– orientate and re–invigorate the national economy. It is the implementation framework for the Agricultural Sector Development Strategy (ASDS).

I.3. The ASDS was published by the government in August 2001. It originated from the Agricultural and Livestock Policy and the Cooperatives Development Policy, both of 1997. It is guided by the principles of the Poverty Reduction Strategy Paper (PRSP), the Rural Development Strategy (RDS) and Tanzania Development Vision 2025 (TDV). The ASDS identified five strategic issues for agricultural development: (i) strengthening the institutional framework, (ii) creating a favourable environment for commercial activities, (iii) clarifying public and private roles in improving supporting services, (iv) strengthening marketing efficiency for inputs and outputs, and (v) mainstreaming planning for agricultural development in other sectors. It is within this strategic framework that a proposed programme for increasing private sector investment in crop and livestock production is proposed.

I.4. The importance of the private sector is recognised in the ASDP which states that: “Agriculture primarily takes place in the private sector, which the ASDP is essentially designed to strengthen and support. Both the ASDS and the Rural Development Strategy recognise that weak public administrative institutions are a major reason why private sector response has been slow to follow reforms aimed at boosting agriculture. It is clear that public sector performance impacts on private sector productivity. However, the private sector, both small and large–scale operators need to be more effective in communicating its concerns to the government.”

I.5. The investment programme for the Agricultural Sector Lead Ministries (ASLM1) includes operations specifically aimed at facilitating private sector oriented investments (see Table 1 of the National Medium–Term Investment Programme, NMTIP). For this to be effective — and to establish the basis for attracting commercial, private sector investment — a great deal more needs to be done to identify and establish the incentives and other enabling factors that will attract increased small,

1 The ASLM comprise Ministry of Agriculture and Food Security (MAFS), Ministry of Water and Livestock Development (MWLD), Ministry of Cooperatives and Marketing (MCM) and the President’s Office – Regional Administration and Local Government (PO–RALG).

1 NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: Investment Profile “Crop and Livestock Private Sector Development”

medium and large–scale investment in Tanzania’s agriculture. It is only in this way that Tanzanian agriculture will move from subsistence production to profitable, sustainable commercial production as reflected in TDV.

I.6. The Small and Medium Enterprise Policy of 2002 aims to promote income generating activities and support diversification of private sector activities. In the context of the agricultural sector, this includes the development of commercial opportunities in production, marketing and processing agricultural produce. The policy acknowledges that there is currently an unfavourable legal and regulatory framework, underdeveloped infrastructure and poor business development services. A series of measures are proposed in the strategy to resolve these problems, with particular attention given to rural industrialisation which would stimulate marketing and processing, and to realise value– added benefits close to the source of production. Here, again, relatively low–cost improvements made by the public sector in the enabling environment should be able to attract substantial private sector investment in agriculture and livestock development.

I.7. The importance of improved private sector involvement is stressed by the 2004 SADC Heads of State and Governments at their Extra–Ordinary Summit on Agriculture and Food Security, held in , Tanzania,2 and it is being increasingly acknowledged that relatively simple improvements to the investment environment can bring with them very substantial benefits through increased private sector investment.

I.8. These objectives have been incorporated within Tanzania’s Comprehensive Africa Agriculture Development Programme (CAADP) NMTIP, where one of the four proposed Bankable Investment Profiles (BIP) is the “Private Sector Development for Crops and Livestock”. The essential aim of this stage of public sector investment will be to support the creation of an effective and efficient investment environment, rather than mobilising public funds to support private sector investment. The commercial banking sector in Tanzania has very significant deposits available for investment in appropriate ventures. This BIP aims to provide support to generate the development of these opportunities.

B. General Information

I.9. Tanzania has a total land area covering just under 950,000 km2, of which 59,000 km2 is inland water. Tanzania borders the Indian Ocean, and is situated between Kenya and Mozambique. Inland, the country shares borders with Kenya, Uganda, Rwanda, Burundi, the Democratic Republic of the Congo, and Malawi. Tanzania has a wide range of climates, extending from tropical along the 1,420 km long oceanic coast, to temperate in the highlands, to alpine on the highest mountain, Mt Kilimanjaro (5,895 m.a.s.l).

I.10. Only 3 percent of the land area is under arable crops, of which only one third is into perennial crops. Rangelands and pastures account for approximately 40 percent of the land area, forests and woodlands for 38 percent, and other land use types cover the remaining 18 percent. The population is approximately 37 million people, with 45 percent of the population under 15 years of age. Population growth is currently 2.6 percent. With a GDP of US$710 per person Tanzania is one of the poorest countries in the world.

2 SADC 2004: Enhancing agriculture and food security for poverty reduction in the SADC Region. Key Issues Paper for Extra–Ordinary Summit, Dar es Salaam, May, 15, 2004. SADC Secretariat, Gaborone, Botswana.

2 NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: Investment Profile “Crop and Livestock Private Sector Development”

I.11. Tanzania’s unexploited natural resource base of 44 million hectares of arable land, 60 million hectares of rangeland, 17.7 million cattle, abundant sources of surface and underground water and several agro–ecological zones, offers opportunities for extensive expansion and diversification in crop and livestock production. Accordingly, expansion and diversification in crop and livestock production is not likely to be constrained by the supply of natural resources in the country, although access to these natural resources may be a binding constraint in some cases.

C. Agriculture and the Economy

I.12. Traditionally, the Tanzanian economy is heavily dependent on agriculture, which contributes more than 50 percent to the GDP and generates over half the nation’s foreign exchange earnings. However, more recently mining, tourism and services have been playing an increasingly active role.

I.13. Over 80 percent of Tanzanians live in rural areas where agriculture and the use of natural resources is crucial to their livelihoods. Approximately 3.5 million farm families cultivate about 4.5 million ha of arable land. Crop yields are only 20 percent to 40 percent of their potential. For the vast majority of rural dwellers, more profitable and sustainable agricultural production, and the rational use of natural resources such as soil, water and forests, offers the only possible way to reduce poverty and improve food security over the medium term. The importance of agriculture for economic growth and poverty reduction must therefore make it a critical sector for development. Unfortunately, the sector has not been adequately supported in the past and has not yet performed to its full potential.

I.14. The main features of the Tanzanian agricultural sector are summarised in Table 1 below.

Table 1: Selected Main Features of the Agricultural Sector in Tanzania Land Resource million ha Total land 95.5 Arable land 44.0 Rangeland 50.0 Land under livestock 24.0 Tsetse infested area 26.0 Cultivated land 10.1 Area suitable for irrigation 1.0 Area under irrigation 0.2 Land under medium and large–scale farming 1.5 Per capita landholding (hectare per head) 0.1 Livestock Population million Cattle 17.7 Goats/sheep 14.0 Poultry 47.0 Sources: URT/WB. Tanzania Agriculture: Performance and Strategies for Sustainable Growth, February 2000. MAFS, Basic Data Agricultural Sector, 2002.

I.15. Agricultural growth has increased, but not yet to a level and composition to significantly reduce rural poverty. Over the 1990s agricultural growth — at 3.6 percent — was higher than in the 1970s and 1980s when it averaged 2.9 and 2.1 percent respectively. Over the 1990s, agricultural exports grew at an annual rate of over 7 percent per year, although this rate has slowed in recent years due to declining world market prices.

3 NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: Investment Profile “Crop and Livestock Private Sector Development”

I.16. Food crop production has grown at about the same rate as population growth and accounts for about 65 percent of agricultural GDP, with cash crops accounting for only about 10 percent. On the other hand, the sale of food and cash crops account for about 70 percent of rural incomes. The government’s official annual agricultural growth target is currently 5 percent. National data show significant progress towards this objective, with an increase of the five year moving average agricultural GDP growth rates increasing from about 3.3 percent between 1991 to 2000, to 4.3 percent over the 1999–2003 period.

I.17. The livestock sub sector in Tanzania contributes an average of 30 percent of the agricultural GDP, out of which 40 percent is from beef, 30 percent is from milk, while poultry and small stock contribute around 30 percent. Livestock provides a relatively secure form of income, savings and investment and as guarantee against crop failure. The potential for increasing private sector in the livestock sector — for local consumption, import substitution and export — is very substantial. It is, however, important that the government establishes an investment environment to attract local and foreign capital into the sub–sector.

I.18. Most meat comes from traditional cattle, mainly unimproved Tanzania Short–Horn Zebu, which are grazed communally in semi–arid rangelands in central and southern Tanzania. The meat is almost entirely used for local consumption with little export, largely due to the lack of constructed and export–accredited abattoirs as well as lack of disease–free zones. Milk production is also mainly from unimproved cattle. In 2002, a total of about 988 million litres of milk were produced, of which 500 million litres came from the traditional sector. The collection of milk from the traditional sector is very little and hardly processed, and most milk is consumed at household level. Currently milk production does not meet the growing national demand for milk. At present the processing capacity of the milk industry in Tanzania is 500,000 litres per day, but only operates at 30 percent of capacity, producing around 150,000 litres per day.

I.19. The sale of livestock and livestock products contributes only about 5 percent to rural incomes. Though there are, of course, pastoral and agro–pastoral communities where this figure is very much higher.

I.20. Associations for small–scale farmers and entrepreneurs are emerging at local and national levels. The successful development of these institutions is fundamental to accelerated agricultural development. If small scale farmers, who represent the vast majority of Tanzanian farmers, can be helped to become better organised and better represented, they will be able to establish a foundation for improved credit systems, input and technical service delivery and marketing, and a platform for the articulation of farmers’ needs. They will be better placed to organise demand–driven research and extension services.

I.21. Already there are commercial producers associations such as the Tanzania Milk Processors Association (TMPA) and MVIWATA (Mtandao wa vikundi vya wakulima Tanzania), which is establishing a national network of small–scale farmers groups in Tanzania designed to help farmers unite so they themselves can defend their interests. This is a model that will be replicated throughout the country. At the local level, groups such as Mtwara Small–Scale Entrepreneurs Development Association (MSEDA) are increasingly becoming active in representing producers’ interests

I.22. In some sectors, most notably mining, but also tourism and commerce, there has been a rapid and effective response to the new investment opportunities. Despite enormous natural potential and a

4 NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: Investment Profile “Crop and Livestock Private Sector Development”

critical place in the nation’s economy, agriculture3 has been slow to respond to these challenges and opportunities. The vast majority of Tanzanian agriculture is still undertaken by resource–poor, subsistence–oriented farm families depending on hand–hoe technology. For a range of different reasons, the sector does not yet offer an enticing environment for large numbers of private sector investors. There are well established, traditional private sector producers, mainly involved with plantation crops (coffee, tea, sisal) and sugar; and large–scale commercial annual crop growers on the Maasai Steppe.

I.23. In addition to strong and growing domestic markets, markets within the region and globally are increasingly becoming available as a result of Tanzania’s membership of regional trade groupings such as EAC and SADC, and as a signatory to international trade protocols such as WTO and EU– ACP. Exploitation of these trading opportunities is central to the design of the Agricultural Sector Development Strategy.

D. Constraints and Opportunities for Private Sector Crop and Livestock Development

I.24. Major constraints include:

• Investment risk. There are serious constraints to financial institutions providing loans to investors in the agricultural sector due to the problems associated with enforcing collateral security as a result of an inefficient legal instruments. Many loans for potentially good projects with acceptable security are not made because the financial institutions lack faith in the courts to look after their interests, should it become necessary to liquidate the security. Key legislation, including the 1999 Land Act, does not effectively provide opportunities for utilising land as collateral. This absence of adequate legislation also prevents the development of a viable mortgage market. The President has initiated a process of reviewing and revising the Land Acts and the Labour Laws with the view of facilitating private investments. However, it is the experience of the majority of financial institutions in Tanzania, including pension funds, that they are constrained by demand, since there is a shortage of good projects that would warrant term funding. The general business environment, based on significant losses from investments on non– viable projects, has resulted in risk averse behaviour by financial institutions. Furthermore, the low loan–to–deposit ratios experienced by practically all banks mean that more assets are invested in government securities than are allocated to loans. This is punishing for banks, as interest on these investments is low, resulting in lower incomes, which again leads to more risk adverse lending practices.

• Business climate. The complexity of the taxation regime and the rates applied discourage investments in commercial farming and agribusiness. Although investment laws are in place, the attitude of public administration officials towards the private sector is an obstacle, leading to illegal rent–taking, time–consuming practices4 and non–transparent fees; all contributing to high transaction costs.

• Trade restrictions. Despite progress, domestic crop markets have still been only partly liberalised. A number of disincentives remain and constrain the level of production. Regional authorities continue to restrict movements between regions and central

3 Agriculture, in the context of Tanzania, is taken to include crop and livestock production, marketing and the associated primary services necessary to enable the sector to function. 4 “We have lost the file”.

5 NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: Investment Profile “Crop and Livestock Private Sector Development”

government continues to restrict exports of food crops across the borders. Recently, the government allowed Rukwa Region to export maize to neighbouring countries and the Rukwa farmers’ prices increased by 2 to 4 times. A general liberalisation of regional and cross–border food trade is now being discussed and this would do much to assist farmers who face low local demand and prices for their crops.

• Producer restrictions. A number of legal restrictions, that limit the farmers’ free choice of what to grow and where to sell, continue to be in force though less strictly enforced than previously. Local governments still have bylaws specifying the acreage of food and export crops to be grown by each farm household. The recently submitted bills for the “new” government–appointed commodity boards (coffee, tobacco, and sugar) include provisions that farmers can only grow these crops if they get the permission of the boards and become registered producers.

• Linkages in the agricultural production system. It is recognised that access to land and natural resources; mechanization; credit and direct financial support to production, improved technology and post–harvest storage methods, and markets are fundamental requirements. Finding ways to put these in place lies at the root of agricultural development and to breaking the cycle of poverty that still encircles so many rural families. At the same time, medium and large–scale farmers must be encouraged to increase productivity through agriculture investment and engage in processor and contract grower partnerships with smallholders. This will facilitate primary producers’ access to the markets, inputs and technology and will provide a sustainable raw material base for agro–processors and agri–business. Here, again, the constraints to growth and necessary responses are understood. These include secured access to land as a commodity, improved marketing infrastructure, an improved tax structure, a streamlined regulatory environment, better and cheaper access to credit and support for marketing, processing and export activities.

• Agricultural support services. Effective extension advice, basic inputs both for crops and livestock (e.g. vaccines) are generally inadequate and sometimes not available. It is clear that agricultural service delivery systems have much to learn from private sector promotion and delivery systems.

• Inadequate human capacity. The low levels of skill and productivity in the agricultural sector could inhibit investment, particularly as risk of HIV/AIDS grows in rural areas.

I.25. Opportunities include:

• Government commitment to agricultural growth and a generally conducive macroeconomic environment.

• Abundant natural resource base suitable for intensifying, extending and diversifying agricultural and livestock production.

• Ready markets within Tanzania, regionally and internationally for the incremental production as long as it meets the expected standards and is competitive.

6 NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: Investment Profile “Crop and Livestock Private Sector Development”

II. PROGRAMME AREA

II.1. The proposed investment programme would be implemented at both national and district levels, with district activities initially focused on areas of significant commercial potential. This would provide the opportunity to develop commercial, private sector initiatives throughout the country at suitable sites. Initially, the programme would focus on analysing national policy, strategy and legal issues related to encouraging private sector investment in agriculture. This would be followed by selecting districts with particular potential for further small– medium– and large–scale agriculture development using a criteria of appropriate soils, rainfall, water availability, undeveloped land potential and a minimum of infrastructure to ensure effective market access.

II.2. The programme would be implemented for an initial four year period, and would establish itself in four different agro–ecological zones of Tanzania (see Map in Appendix 1): • Northern Highlands; • Maasai Steppe; • Southern Highlands; • Mtwara Corridor.

II.3. These areas have been selected deliberately to contrast the wide variety of socio–economic and agro–ecological conditions in Tanzania.

II.4. Northern Highlands. This area includes Arusha, Moshi and much of Tanga regions and is characterised by high rainfall, generally cool climates and fertile highland soils from the underlying volcanic soils. Agricultural activity in this region is mainly a mixture of small and medium–scale farmers, many producing for the national and export markets. Livestock production tends to be intensive, much of it zero–gazing and primarily oriented towards the production of milk and meat.

II.5. Maasai Steppe. This area includes much of the central part of the country covering Mara, Shingyanga, Dodoma and Tabora regions and contrasts well with the northern highlands. Population densities are low, and agricultural and livestock production is largely traditional and subsistence based. Cattle are grazed extensively under communal management systems and much of the land is gazetted under either national parks, game reserves of forest reserves. There are, however, a number of commercial large scale farmers in the area involved in wheat farming.

II.6. Southern Highlands. Covering all of Iringa and Mbeya Regions, and parts of Morogoro, Rukwa and Ruvuma Regions, this area has traditionally been considered the bread basket of Tanzania, producing large volumes of staples such as rice, maize, beans as well as export crops such as tea and coffee. Rainfall is relatively high and agriculture is well developed – consequently it is considered one of the more wealthy regions of the country.

II.7. Mtwara Corridor. In the extreme south west of the country, and covering Mtwara, Songea and part of , this area is poor and isolated, with relatively low rainfall and largely infertile soils. Land and natural resources are still abundant, due to the poor accessibility. However, given the current construction of the Dar–Mtwara road and the new Mkapa Bridge over Rufiji River, new opportunities are now being presented for improving agricultural production. Due to the persistence of tsetse fly, extensive investment in livestock development will need support of the Pan African Tsetse and Trypanosomosis Eradication Campaign (PATTEC), for which Tanzania is developing a programme.

7 NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: Investment Profile “Crop and Livestock Private Sector Development”

III. PROGRAMME RATIONALE

III.1. The underlying rationale for the programme is the need to support the realisation of the significant, but so far underdeveloped, economic potential to increase crop and livestock production, processing and marketing through facilitating greater private sector investment in agriculture in Tanzania. At this initial stage of a coordinated government programme, the investment generated by this BIP would support the government putting in place measures, instruments and incentives to attract effective and responsible private sector investment.

III.2. While both the natural potential of agricultural resources and the government policies for greater private sector involvement exist and are recognised, the response from the private sector has so far been limited. It is therefore important to understand what are the real and the perceived constraints to greater investment, and to understand better what incentives and conditions are needed to attract new investors. This would provide support to a segment of the agricultural sector that is currently in need of greater attention. There is no doubt that at district and national levels there is considerable mistrust between private and public sector stakeholders: farmers and agri–business on one side vs. politicians and civil servants on the other. This is not a healthy environment for investment.

III.3. Through NEPAD–stimulated incremental investment, the programme would provide support to develop a better understanding of the fundamental constraints and provide funds to stimulate future development to realise the significant social and economic benefits. A number of key constraints to agricultural and livestock enterprises have already been identified and are briefly mentioned below:

• Tanzania loses considerable unrealized income as a result of limited local capacity to process agricultural and animal products. This provides significant advantages for competitors and results in the loss of potential added value to the product; especially for marketing and local processing for value added. Small–scale investments in storage and processing of agricultural and animal produce can lead to significant economic opportunities for small and medium scale farmers. Storage of key crops such as maize, beans, potatoes and other staples for a month or two can lead to doubling of returns to farmers. In the southern highlands, recent promotion of sunflower seed by Enterprise Works (a US–based NGO) together with simple hand processing and pressing technology has resulted in increased returns to groups and individuals. Work done by the same NGO on the promotion of simple micro–irrigation technology (treadle pumps) has meant that with a small investment, farmers can produce off–season produce and benefit from increased market prices for horticultural perishables, such as tomatoes and cabbages, during periods of low production. Significant progress can be made through improved abattoirs, meat processing, hides and skins processing and dairy collection and processing.

• Although some form of cooperation is taking place between small–scale and large–scale growers and processors of some crops, there is still further potential to expand and develop interactions and agreements between large–scale and small–scale producers so that small–scale operators can gain from technical expertise and the economies of scale by contractual association with large scale producers. Where contractual obligations can be enforced, forging partnership arrangements between smallholders and agribusiness in the form of out–grower and contract farming schemes allows smallholders to enjoy assured markets for their products and the supply of inputs on a credit basis or through input voucher schemes. Contractors benefit from an assured supply of raw materials with improved quantity and quality. Such schemes are currently in use for tea, sugar cane, tobacco, sisal and milk and they may be suited to other crop and livestock products as

8 NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: Investment Profile “Crop and Livestock Private Sector Development”

well. In recent years there have been significant economic impacts for medium scale farmers who have been able to take advantage of the growing milk market, but cannot invest sufficient capital in milk processing and storage.

• Government has made a strong commitment to move away from delivery of services in core areas such as agriculture and livestock at district levels and below. This will mainly be done by developing collaborative relationships with NGOs, CBOs and private sector service providers. The public sector will gradually, but increasingly, limit its role to financing the provision of collective goods and services that the private sector is unwilling to provide, and the targeted financing of goods and services to overcome rural poverty. Areas such as agricultural research, extension and training, artificial insemination, animal health, seed production, feed and input supplies will increasingly be undertaken by the private sector ASPs. In addition, there are investment opportunities for medium scale enterprises to provide specialist services such as Business Development Services (BDS). Market assessments carried out by the DANIDA Private Agricultural Sector Support (PASS) programme have revealed there are limited numbers of BDS providing business planning services, other niches such as management training, technical training, advertising and marketing, facilitating linkages to potential buyers in other countries, financial engineering, organisational development and restructuring are largely unavailable. And the demand is growing.

• Tanzania has the potential to increase agricultural growth by improving quality of existing products and expanding production of new high value crops and livestock products. There is, for example, an increasing global demand for soya beans, in particular in Europe and China.5 There is consequently a potentially lucrative market for whichever country can encourage its growers to respond to this opportunity and develop trade agreements accordingly. Soya grows well in Tanzania. An additional opportunity is the development of niche markets for organic products. By default, much of Tanzanian agriculture is organic or semi–organic. The world–market for organic products will inevitably continue to expand6 and farmers can be encouraged and helped to exploit this potential through the establishment of farm–to–market linkages, market information and improving product quality. Another potential sub–sector that will be explored under this sub–component is high quality cassava flour. Currently, there are significant and unmet markets for quality cassava flour, but much of the cassava flour produced in Tanzania is poor quality due to improper drying, peeling, chipping and milling. Livestock also represent a potential market, sheep, goats, pigs and poultry are highly productive that are easy to handle as they need small space per animal, resistant to harsh environment and diseases, easy to manage and can guarantee against crop failure.

• Crop farmers and livestock owners face a range of constraints in accessing investment capital for agricultural enterprises, including the fact that many commercial banks serve urban markets only, tend to shy away from agriculture due to a perception of its high risk, and do not recognise land as suitable collateral. As a result, many farmers are simply considered as “unbankable”.

5 According to FAO estimates, soybean production worldwide increased from 115 million tonnes (Mt) in 1993 to 190 Mt in 2003, i.e. an increase of about 65 percent. In 2003, the world leading producers are the USA (35 percent) and Latin America (mainly Brazil and Argentina which account for 46 percent), and China (9 percent), with Africa accounting for only 0.5 percent. 6 Last year the market for organic produce in the UK alone topped £100 million, much of it originating in developing countries.

9 NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: Investment Profile “Crop and Livestock Private Sector Development”

III.4. Through a range of interventions summarised in Chapter V below, the project will support activities to overcome the above constraints while taking advantage of the available opportunities. In doing so, the government will create opportunities for an accelerated and expanded private sector investment in agriculture and livestock, improve crop and livestock production and productivity, boost farmer incomes, reduce poverty and enhance food security.

IV. PROGRAMME OBJECTIVES

IV.1. The overall objective of the proposed programme is to facilitate new national and international private sector investment by small– medium– and large–scale crop and livestock producers, processors and traders. It also aims to build better linkages between the public and private sector arms of agriculture through the provision of information, policy adjustment and financial support. Furthermore, it aims to reduce the current mistrust that exists between the public and private sector sides of this critical area of national development. The result would be increased access to financial services, accelerated private sector investment, improved land security and better technical service delivery to producers and processors. This would be achieved through the establishment of a clear incentive environment to attract and retain new private sector investment in crop and livestock production, and establish improved communication between public and private sector stakeholders.

IV.2. Specific objectives include:

• To facilitate an increase in the number and profitability of small and medium enterprises (SMEs) operating in the agriculture and livestock sector

• To develop collaborative and mutually beneficial ventures between the large scale private sector investors and small scale farmers, supported by national and district government institutions in the agricultural and livestock sector

• To develop a cadre of Tanzanian private sector agricultural service providers (ASPs) who can respond to the diverse range of demands coming from communities and small and medium scale agricultural entrepreneurs

• To mobilise private sector delivery systems for improved animal health

• To promote selected new crops, improved breed, niche markets, and improved commercially viable varieties.

• To link farmer groups and SMEs to a range of financial services operated through the private sector and community based associations

V. PROGRAMME DESCRIPTION

V.1. The proposed programme would build on work already underway to encourage greater private sector activity in agriculture and livestock. This has been initiated by the MAFS, the Tanzania Investment Centre (TIC), the Private Sector Foundation, the PASS programme, the Ministry of Water and Livestock Development, and the Ministry of Cooperatives and Marketing. The investment described in this BIP would help the government to create an attractive enabling environment for increased small–medium– and large–scale investments in improved agriculture and animal production, processing and marketing by facilitating the development of linkages within the agricultural supply

10 NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: Investment Profile “Crop and Livestock Private Sector Development”

chain (between agricultural producers, processors, and sellers), supporting the emergence of private agricultural service providers (ASPs), and assisting SMEs and farmers to become more commercially orientated through the provision of information, training and finance.

V.2. The programme intends to generate increased investment by creating a better enabling environment for investment.7 The programme would help build better professional linkages between the public and private sector stakeholders, and work with smaller and medium scale agricultural and animal production enterprises to add value to produce, improve market penetration, and access new forms of advisory services. The details of specific activities of the project would be elaborated during the preparation phase but it is expected to have five components as outlined below.

• Small and Medium Enterprise (SME) Development. This component would provide support to SMEs to access financial resources8, and link to new technologies and markets for specific crops and animal products through business planning, technical training and possible support for technology acquisition. Priority would be given to SMEs with forward and backward linkages to a product, and which add value through processing, services or marketing along the supply chain from the farmers and livestock owners.

• Promoting Partnerships between Small–holder Out–growers and Agribusinesses. This component would first investigate options for establishing contractual arrangements between smallholders and agribusiness in the crop and livestock sectors and then possibly provide incentives to engage in partnership arrangements.9 The component would also support improvements in public sector contract enforcement capacity through training and policy reforms.

• Improving Private Sector Agricultural Service Delivery. Currently, ASPs are weakly developed to provide the technical support needed to stimulate demand–driven profitable technology adoption. The component would aim to develop and strengthen private sector ASPs with a view to developing a range of potential services suitable for outsourcing by government agencies at national and district level, and offering services direct to potential customers. The component would support training of private ASPs and pilot contracting activities. Mechanisms would also be developed for private and public sector collaboration in the delivery of effective support services.

• Promotion of New Crops, Breeds and Niche Markets. This component will facilitate the provision of market and technical information and the establishment of suitable incentives which would encourage farmers to develop new crops, animal products, increase production of short cycle stocks and exploit new markets. This would include support to building the capacity of farmers, processors, ASPs and agricultural research to raise the quality of crops such as cassava to acceptable levels and increase production of higher quality livestock. Linkages would also be developed with ongoing client oriented

7 The program would not finance increased investment through the public sector, rather, it would support the creation of an environment that would allow for increased investment by the private sector. 8 The programme would attempt to facilitate access to the existing pool of investment capital that is largely idle in Tanzania. Possible activities could include capacity building and product development for financial institutions, provision of risk capital in order to leverage private investment in SMEs, and business development services. 9 Incentives could be linked to the activities in the previous component, provision of guarantees or capital to facilitate out–grower arrangements, and filling information gaps through training and business development services for farmer organizations.

11 NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: Investment Profile “Crop and Livestock Private Sector Development”

research management approach (CORMA) activities. The component could also support demonstration sites and training services, establishment of quality and standards systems for select products, and support to national and international marketing efforts.

• Linking producers to sources of financing. This component would address, in two ways, the problems farmers face in accessing finance. Firstly, farmers would be facilitated to gain access to specialist farmer finance programmes.10 Second, for those in remote areas and beyond the reach of such schemes, a second option would be explored –the promotion of village–based and pastoral–community–based micro–finance schemes such as Rotational Savings and Credit Associations (ROSCAs). Such schemes, build upon traditional group–based saving and lending schemes operating across much of eastern Africa and have been successfully implemented across Tanzania by a range of local and international NGOs such as CARE International, Farm Africa and SEDIT Trust.

V.3. All activities described above will contribute directly to the CAADP Pillars of extending the area of land under stable land management, improving trade–related capacities for improved market access and increasing food supply.

VI. INDICATIVE COSTS

Table 2: Cost Summary per Component per Year Component Year 1 Year 2 Year 3 Year 4 Total (US$) 1. SME Development. Training and capacity building of service providers, SMEs and entrepreneurs 250,000 250,000 250,000 200,000 950,000 Micro–projects and local investments in SMEs 100,000 150,000 150,000 100,000 500,000 2. Promoting Partnerships Consultancies, market surveys, sub–sector analyses, monitoring and evaluation 250,000 250,000 150,000 100,000 750,000 3. Agricultural Services. Field visits, farmer to farmer exchanges and study tours 50,000 50,000 50,000 50,000 200,000 Contracts to specialist service providers/NGOs 300,000 350,000 400,000 250,000 1,300,000 4. Developing Niche Markets. Market development 150,000 150,000 75,000 25,000 400,000 5. Linking Producers to Finance. Financial services (loan guarantee funds, training in savings and credit) 300,000 300,000 100,000 50,000 750,000 6. Programme coordination (*) 950,000 800,000 800,000 800,000 3,350,000 Total Baseline Costs 8,200,000 Physical Contingencies (2 percent) 164,000 Price Contingencies (2 percent) 164,000 Total Programme Costs (US$) 8,528,000 Foreign Exchange (**) 1,735,000 (*) To include transport costs and other investments/equipment. (**) Foreign exchange: 10 percent of training and capacity building ...... US$95,000 40 percent of consultancies ...... US$300,000 40 percent of programme co–ordination...... US$1,340,000 Total ...... US$1,735,000 (20.3 percent)

10 For example, the DANIDA financed PASS (Private Agricultural Sector Support) programme, the “Juhudi scheme” under SNV and the National Income Generation Programme (NIGP) – Mutual Guarantee Fund, supported by the UNCDF.

12 NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: Investment Profile “Crop and Livestock Private Sector Development”

VII. PROPOSED SOURCES OF FINANCING

VII.1. Currently funding to support the implementation of the ASDP comes from a number of different donors including European Union, FAO, The World Bank, Ireland Aid, Japan and DANIDA. Government is also contributing internal funding through the MAFS Medium Term Expenditure Framework (MTEF) budget as well as providing overall coordination, policy leadership, technical staff, office space, and other resources.

VII.2. As part of the ASDP, the National Programme for Private Sector Crop and Livestock Development would seek incremental investment funding through NEPAD international initiatives and the private sector as presented in the framework budget in Chapter VI above. It is expected that the Government of Tanzania, donors, and programme beneficiaries would contribute to the cost of programme implementation. Beneficiary communities would contribute by directly participating in the activities (and contributing time, labour and local materials), and the private sector through local investment in processing, microfinance and marketing activities. Donor and government financing would pass through the ASDP “basket” system.

VIII. PROGRAMME BENEFITS

VIII.1. The primary beneficiaries of this programme would be principally small– and medium– scale farmers and livestock owners living in the four programme regions. Those who are prepared to invest their own time and effort in achieving progress would particularly benefit. The major benefits from the programme would include:

• Strengthened small and medium scale enterprises in the agricultural and livestock sector. At the end of the programme, a range of lower level private sector initiatives would have been established and supported. This would provide additional income to rural entrepreneurs, their families and communities.

• Strengthened collaborative links between small– and medium–scale farmers and large– scale agri–businesses. By developing links between farmers and agribusinesses such as sugar, tea, rice, milk, hides and skins producers across the programme zones (presented in Chapter II), farmers and livestock owners would be able to access new markets and diversify production in a low risk environment. This would provide additional income to rural farmers and agro–pastoralists, diversify livelihoods (thereby reducing vulnerability) and strengthen larger scale agri–businesses through increased volume and production capacity.

• Improved and diversified service provision to rural producers. Through the establishment of increased numbers of specialist ASPs and assisting them to develop collaborative ventures with local and national government, rural farmers would be able to access new services from a wider range of service providers to support both crop and livestock production.

• Increased organisation, marketing capacity and opportunities for influencing policy makers. Through the development of local, regional and national farmer organisations, members would have greater opportunities for benefiting from collective marketing, improved market information and other economies of scale. In addition, the many legal constraints facing small and medium scale enterprises can be raised through national level

13 NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: Investment Profile “Crop and Livestock Private Sector Development”

umbrella network organisations, bringing issues to the attention of policy makers, in the anticipation that it would lead to improvements in the legal and regulatory framework.

• Increased employment opportunities. The creation of new small and medium enterprises in rural areas would inevitably lead to greater opportunities for employment, and therefore give new income sources to those seeking paid labour.

• Sustainable economic activities. Following the establishment of this programme, a range of sustainable economic activities would have been established and running as a result of internalisation of running costs by the private sector. They would not require additional funding once they have been established, and would continue to provide direct benefits and economic multipliers after the programme has been ended.

IX. IMPLEMENTATION ARRANGEMENTS

IX.1. The proposed programme would be implemented within the ASDP framework and integrated with a SWAp with coordination vested under the MAFS. Day to day implementation would be the responsibility of private sector operators and NGOs, who would be selected via a competitive tendering process overseen by government, and approved by other financial partners. A Programme Steering Committee would ensure co–ordination between line ministries and stakeholders at the local level. Members of the committee would include representatives of the ASLM, farmer’s associations and professional chambers, and representatives of private sector producers and processors, financial and technical service providers. Because the programme is focused on increasing private sector participation in crop and livestock production, it will rely heavily on input from the private sector to measure the impact of project activities and progress on implementation.

IX.2. The programme implementation team would report directly to the inter–ministerial committee, close links would be established to private sector operators such as producers, agribusinesses, processors, input suppliers, micro–finance institutions and banks, traders, retailers and exporters, with a view to identifying suitable collaborative activities as proposed in this document. Furthermore, the programme would develop collaborative relationships to specialist organisations with experience in a range of appropriate areas such as developing small scale savings and credit schemes, micro–enterprise and business planning, agricultural marketing and commodity trading, agri–business financing, agro–processing, appropriate technology and so on. Finally, it would build links to Tanzania Chamber of Commerce, Industry and Agriculture, the TIC as well as other projects working on the promotion of private sector interests in Tanzania.

IX.3. At the district level, the programme would liaise closely with the District agricultural staff, agricultural research institutions and centres, and other publicly funded agricultural support services. District level activities would be developed as part of District Agricultural Development Plans (DADPs). As a first step, the programme would sensitize, facilitate and generate demands which would be incorporated in DADPs. Thereafter, support could be provided during implementation at the request of districts. The programme would identify opportunities for developing new relationships between districts and private sector service providers, with a view to outsourcing agricultural service provision in line with national and local government reforms.

IX.4. The External Coordination Unit of the MAFS will provide links between Mainland and Zanzibar and report to the Inter–Ministerial Steering Committee on issues arising at country and international levels.

14 NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: Investment Profile “Crop and Livestock Private Sector Development”

X. TECHNICAL ASSISTANCE REQUIREMENTS

X.1. The proposed programme would entail activities that are relatively new to the agricultural sector in Tanzania. In addition to the contractor recruited to coordinate the overall programme, additional short–term technical assistance, both local and international, would be required to provide specialist input for a range of activities. These are described briefly below:

• Marketing specialist: With experience in marketing agricultural commodities at local, regional and international level, the marketing specialist would identify suitable interventions that can add value to produce at the local level. This could include different options, such as quality control measures, developing economies of scale through group based marketing, developing assembly points for transport of key commodities and so on.

• Niche crops specialist: Cassava and soya beans have been identified in this profile as potentially suitable niche crops that could generate significant income benefits across much of Tanzania. During the course of programme implementation, new sub sectors would be identified as suitable for further support. A specialist would be required to identify markets for these products, and develop the farm–market links in these sub– sectors. S/he would advise on suitable technology and investments required to reach large–scale penetration of these markets. A specialist would also be required to advise on add value of the said products.

• SME specialist: As described in this document, a major emphasis would be placed on the development of SMEs in the agricultural sector. A specialist would be required to assist with developing the capacity of BDSPs who can offer specialist services to emerging businesses and SMEs. In addition, the SME specialist would develop a series of training courses tailored to meet the needs of Tanzanian SMEs, and establish how these training courses could be integrated into the curricula of training institutions in the four programme zones.

• Communication specialist: A communication specialist would be required to develop clear messages for stakeholders at national, regional, district and village levels. Carefully developed information campaigns concerning linking to MFIs and other services offered by the programme, market information, niche crops as well as other technical information which can add value to local SME investments

XI. ISSUES AND PROPOSED ACTIONS

XI.1. The BIP presented here requires further analysis and preparation work if it is to be finalised into a detailed proposal. Specifically, further work should be done to refine the scope of project components and provide greater detail on the investments to be financed by the Programme. There are also outstanding technical issues that would require further detailed investigation, described below:

XI.2. Market identification. Niche crops that could be suitable for further investment under this BIP, particularly cassava and soya. Other non–traditional export crops, such as Paprika, Black and Green Pepper, Cocoa and Vanilla, are all grown in parts of Tanzania, but on a very limited scale. Before starting this programme, a series of market surveys would be conducted to assess Tanzania’s competitive and comparative advantage in these sub sectors. Constraints to further expansion would be identified as well as opportunities for value–addition through local processing.

15 NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: Investment Profile “Crop and Livestock Private Sector Development”

XI.3. Private sector relationships with rural producers. As a way to promote discussion at national and local level on the potential positive relationships that can be developed between government agencies, the private sector and rural farmers, a “review of experiences” study would be conducted to identify examples of experiences of such joint ventures, as well as what lessons have been learned about private sector involvement in the agriculture and livestock sectors. This work, it is hoped, would trigger discussions and debate around future opportunities to expand successful experiences, as well as mitigating the effects of market failure and non–beneficial relationships between different sectors.

XI.4. Availability of service providers in private and NGO sectors. The proposed programme would need to develop an extensive network of government, non–government and private sector partners if it is to be effective in reaching its goals. Specialist service providers with experience in supporting rural enterprises and developing market strategies would need to be identified and engaged to extend the reach and impact of this programme. However, before doing this, there would be a need to undertake a national assessment of potential partner institutions, their current activities and plans, their capacity and willingness to collaborate

XI.5. Quality of infrastructure. Rural infrastructure (particularly rural access roads) have been identified as one of the biggest constraints facing rural producers in reaching and penetrating markets for agricultural and animal produce. A review would be conducted with a view to identifying ways in which these constraints can be overcome, either by collaborating with programmes targeting rural access roads, or through cost sharing mechanisms with local stakeholders to upgrade local roads.

XI.6. Integration of programme with ASDP/SWAp. The proposed programme will be implemented within the ASDP framework, which is itself still under development. Further work would be required to ensure harmonization between the activities described in the BIP and the overall ASDP, and to design appropriate implementation mechanisms, particularly at the district level.

XII. POSSIBLE RISKS

XII.1. The risks associated with this programme, which could hinder implementation include:

• Government is not able to fulfil policy and legal provisions in support of involvement of private sector in agricultural enterprises. In Chapter III, it was made clear that government agencies are still in the process of opening up and accommodating the needs of the private sector. A range of provisions have been identified in the ASDS which will create a more enabling environment for private sector players, but these have yet to be fully implemented.

• Continued restriction on trade. Considerable opportunities exist for trade between regions and across international borders. A general liberalisation of regional and cross– border food trade is now being discussed and this would do much to assist farmers who face low local demand and prices for their crops. Again, this has yet to be fully implemented

• Private sector service providers are not given opportunities to outsource government services. Policy documents from MAFS clearly state the need to move away from state managed agricultural services, and to develop new relationships with external service providers. For this to happen effectively, a mindset change is required in local

16 NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: Investment Profile “Crop and Livestock Private Sector Development”

government institutions — something which is beginning to happen slowly, but somewhat unevenly.

• Unfulfilled co–ordination requirements between the ASLM. Activities in this document span all four ministries and effective co–ordination between the different sectors is required to ensure programme success at local levels.

• Market failures. Efforts to develop new markets may be inhibited by non– competitiveness (including dumping by competitors) but also due to difficult access or penetration to anticipated markets for various reasons (trade barriers, unacceptable product quality) or due to unattractive primary commodity prices.

• Low participation by the targeted beneficiaries. The programme could experience difficulty in attracting private capital flows to basic agriculture vis–à–vis other less risky ventures in trade and commerce.

17

NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: Investment Profile “Crop and Livestock Private Sector Development”

Appendix 1: Map of Project Area

Bukoba Rural Bukoba Urban Karagwe Musoma Urban Tarime Musoma Rural Mara Muleba Ukerewe Bunda Serengeti

Mwanza Magu Ngorongoro Ngara Sengerema Bariadi Biharamulo Geita MwanzaMisungwi Monduli Kwimba Maswa Arusha Arumeru Meatu Arusha Moshi Rural Bukombe Shinyanga Rural Karatu Moshi Urban Shinyanga Kibondo Kahama Mbulu Kilimanjaro Babati Simanjiro Same Kigoma Nzega Igunga Iramba Kasulu Lushoto Hanang Kigoma Urban Muheza Singida Urban Pemba Micheweni Urambo Tabora Urban Kondoa Kiteto Korogwe Pemba Wete Kigoma Rural Tanga Singida Rural Tanga Chake Chake Tabora Mkoani Dodoma Handeni Pangani Kongwa Unguja North B Tabora Rural Singida Unguja North A Dodoma Urban Unguja Urban Unguja Central Mpanda Manyoni Unguja West Unguja South Bagamoyo Rukwa Mpwapwa Ilala Dodoma Rural Kilosa Kibaha Kinondoni Dar es Salaam Morogoro Urban Temeke Kisarawe Iringa Rural Morogoro Rural Mkuranga Nkasi Morogoro Chunya Coast Iringa Urban Mafia Mbarali Rufiji

Sumbawanga Urban Mbeya Mufindi Kilombero Rural Mbeya Rural Ulanga Mbozi Kilwa Njombe Rungwe Liwale Makete Iringa Ileje Lindi Southern Highlands Kyela Ludewa Lindi Rural Songea Rural Mtwara Corridor Nachingwea Mtwara Urban Mtwara Rural Songea Urban Masaai Steppe Mbinga Tunduru Masasi Newala Ruvuma Mtwara Tandahimba Northern Highlands

19

NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: Investment Profile “Crop and Livestock Private Sector Development”

Appendix 2: List of References

1. DANIDA. 2003a. Agricultural Sector Programme Support II, Programme Document. 2. DANIDA. 2003b. Private Agriculture Sector Support, Component Document. 3. SADC. 2004: Enhancing agriculture and food security for poverty reduction in the SADC Region. Key Issues Paper for Extra–Ordinary Summit, Dar es Salaam, May, 15, 2004. SADC Secretariat, Gaborone, Botswana. 4. URT. 2000a. Agriculture: Performance and Strategies for Sustainable Growth, February 2000. 5. URT. 2000b. Poverty Reduction Strategy Paper (PRSP). Dar es Salaam. 6. URT. 2001a. Rural Development Strategy, Main Report. Dar es Salaam. 7. URT. 2001b. Agriculture Sector Development Strategy, MAFS. 8. URT. 2002. Basic Data Agricultural Sector, MAFS.

Internet sites: http://www.tanzania-online.gov.uk/Agriculture.htm http://www.tanzania-online.gov.uk/Agriculture+LiverstockPolicy.htm http://www.tanzania-online.gov.uk/Tanzania%20Business.html www.isnar.cgiar.org/arow/Africa/Tanzania.htm www.tanzaniagateway.org/display.asp. www.tccia.co.tz/ www.cityfarmer.org/tanzania.html www.unido.org/en/doc/8051 www.tanzanianews.com www-wds.worldbank.org/servlet/WDS_IBank_ Servlet www.ifad.org/events/gc/tanzania www.tic.co.tz www.undp.org/business/gsb/docs

21