Agriculture

Agriculture has been destroyed by both internal and external factors. However, revival of the sector can provide European companies with a number of primary products desirable by their citizens and the world over. This is essentially coffee, cotton, tea, cashew nuts, cocoa, vanilla. These products account for about 48 percent of Tanzania's GDP, provide 65 percent of total export earnings and are by far the largest employer.

The sectors annual growth rate declined from 4% in 1999 to 3% in 2000 as a result of low short and main rainfall seasons, pests and inadequate availability and distribution of inputs.

The introduction of free market economy in 1985 has had a positive effect on the sector through introduction of semi-mechanized methods and new technologies especially in such sub sectors as cutflower and agro-processing industries. The growth of other sub sectors, e.g., agricultural equipment, farm implements, agricultural inputs etc.is still characterized by import dependence. Investment in mechanized and intensive agriculture has not born fruits due to non-implementation of land law reforms that is expected to go hand in hand with the open economy. However, the government is in the final stage of submitting the land law reform bill to Parliament this year. It is expected that such reforms will attract more investors in agriculture.

In addition, the revival of agriculture is the only way to fill the pockets of majority of Tanzanians and hence increasing their purchasing power and demand for imported goods.

In terms of dynamic sub sectors in agriculture, the cut-flowers has had a multiplier effect in both imports and exports. The sub sector that was introduced some seven years ago has attracted investments in new technology on irrigation systems, greenhouses and refrigerated trucks. Kilimanjaro Airport Development Company (KADCO) which manages Kilimanjaro International Airport (KIA), the gateway for cut flowers in the north of the country has a plan for construction of cold storage facility for cut-flowers in year 2002.

The other contributors to the agricultural sector are fish especially Nile Perch in Lake Victoria that has attracted a number of fish filleting plants, "organic coffee" and pigeon peas in Arusha and Kilimanjaro regions that are being promoted by TechnoServe, as well as other non traditional crops.

In general, the agricultural sector offers European companies a big opportunity for technology investment in the areas of farm implements, agro-processing industries, agricultural machineries, irrigation equipment, fishing equipment, agricultural inputs as well as general commodity trading.

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