The agricultural transformation in Tanzania has increased
the Gross Domestic Product value since 2008, growing the country’s economy and lowering
inflation levels.
According to a World Bank report, farmers are more likely to
engage in agriculture land and labor markets and to practice some
intensification.
The report adds that farms labour rose from 45% to 50%, for
a single day, with farmers renting land rate rising from 12 to 16%.
GDP figures from the report shows that growth remained
steady in the first half of the year 2019, driven by higher public investment
and a recovery in exports.
It further indicates how inflation levels dropped, balancing
payments and exports.
“The country’s inflation has been low and stable, and the
balance of payments is quite sound despite a widening current account deficit.
Exports are recovering from last year’s contraction…” read the report in part.
The Government visualized a five-year development plan (Tanzania
Development Vision 2025) which will ensure reducing rates of poverty levels are
realized and sustain the industrial sector to achieve middle-income status by
2025.
Part of these vision is agriculture, which is recognized as the
central focus in realizing its objectives for socioeconomic development, which
are well-articulated in the Second Agriculture Sector Development Program (ASDP
II).
The goals of the ASDP II are to transform agriculture by
promoting commercialization, prioritizing high-potential commodity value
chains, and mobilizing capital by giving the formal private sector a growing
role in agriculture.
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