This archive report was first published on 21 July 2020.
On July 21, 2020, the Tanzanian government announced the repossession of eight premium horticultural farms in Arusha, which had been abandoned by defaulting owners.
The farms, located on the southern slopes of Mount Meru, were once pioneer producers of barley, wheat, flowers, and vegetables but have been lying idle for over a decade.
According to Deputy Agriculture Minister Hussein Bashe, the farm owners fled the country after defaulting on government-insured loans amounting to Tsh43.8 billion ($19.04 million) through the Bank of Tanzania's Credit Guarantee Scheme between 2005 and 2007.
Deputy Minister Bashe stated, "The repossession strategy is to see that all the farms are reallocated to more serious and creditworthy investors in the hope of a commercial resurgence."
The farms were owned by Kiliflora, Kombe Roses, Shira Flowers, Allua Flowers, Zanziflora, Finlays, Flamingo, and Arusha Blooms Ltd.
Horticulture is the fastest-growing subsector in Tanzania's agricultural industry, with revenues from flower and vegetable exports growing at 11 percent per year.
According to Tanzania Horticultural Association (Taha) chief executive Jacqueline Mkindi, the industry currently has a $779 million export value per annum and could potentially rise to $3 billion in the next five years.
