This archive report was first published on 10 December 2019.
On December 3, the World Bank launched its 13th Tanzania Economic Update report, Transforming Agriculture, which highlights the potential of the agriculture sector to drive economic growth in Tanzania.
The report, which was launched by World Bank Country Director for Tanzania Bella Bird, notes that agriculture provides more than 67% of all jobs in the country and contributes nearly 30% to the country's total GDP.
According to the report, Tanzania has experienced a steady rise in commercialized and more productive small-scale farmers, with the proportion of such farms increasing from 19% in 2008 to 25% in 2014.
Medium-scale farmers have also played a significant role in the growth of the agriculture sector, with the number of such farms increasing by 368,000 between 2008 and 2014.
These medium-scale farmers have created opportunities for smallholder farmers through positive spillovers, and have invested in technology and knowledge, attracting commercial services that can provide a basis for tax revenue.
As a result, small-scale farms have seen an improvement in their farming outcomes, with the average small-scale farm improving its farming outcomes.
Agriculture contributes significantly to Tanzania's foreign exchange kitty, with the sector earning around $1 billion in earnings from cash crop exports, including coffee, cotton, sisal, cashew nuts, tobacco, and tea.
