AGRICULTURE in Tanzania is not merely an economic activity, it is the lifeblood of the nation, sustaining millions of livelihoods and contributing significantly to the country’s GDP. Yet, the sector faces substantial challenges that threaten its potential to drive broader economic development. Low productivity, reliance on rain-fed farming, limited mechanisation, and inadequate infrastructure are the obstacles that must be overcome to unlock Tanzania’s full agricultural potential.
In recent years, it has found a strong and reliable partner in India, a nation with a rich history of agricultural innovation and technological prowess. Through a series of strategic collaborations, India is helping to reshape Tanzania’s agricultural landscape, bringing new hope to a sector that has struggled for long.
Major challenges
Tanzania’s agricultural sector is predominantly characterized by smallholder farming, with many farmers relying on traditional methods passed down through generations. While these methods have sustained communities for centuries, they are no match for the modern challenges of climate change, population growth, and global market integration. Productivity remains low, with many farmers struggling to produce enough to meet their basic needs, let alone generate surplus for sale.
The use of modern inputs like improved seeds and fertilisers is still limited. According to recent reports, only about 15 pc of the cultivated area in Tanzania uses improved seeds, and fertiliser use remains far below international standards. Moreover, the level of mechanization in Tanzania is low, with most farmers relying on manual labour or rudimentary tools.
Multifaceted involvement
India’s involvement in Tanzania’s agricultural sector has been multifaceted, focusing on key areas such as irrigation, mechanisation, and value addition. These efforts are part of a broader strategy to modernise Tanzanian agriculture, making it more productive, resilient, and competitive on the global stage.
Irrigation: One of the most critical areas of collaboration between India and Tanzania is irrigation. Indian companies like Kirloskar Brothers Limited have been instrumental in supplying pumps and other irrigation equipment to Tanzania. This technology is crucial for increasing the efficiency of water use in agriculture, allowing farmers to produce more with less and reducing their vulnerability to droughts and other climate-related risks.
Mechanisation: This is another area where India is making a significant impact. The introduction of tractors and other modern farming machinery has been transformative for many Tanzanian farmers. Mahindra & Mahindra has played a crucial role in this effort. By providing high-quality, affordable machinery, the leading India conglomerate is helping to make modern farming practices accessible to a broader segment of Tanzanian farmers.
Beyond productivity, another critical focus of the India-Tanzania partnership is value addition. Historically, many of Tanzania’s agricultural products have been sold raw, fetching low prices on the international market. However, there is now a concerted effort to process these products locally, thereby increasing their value and creating more jobs within Tanzania.
Agro-processing
Indian expertise in agro-processing is helping to establish facilities for sorting, grading, and packing agricultural products. These facilities enable Tanzanian farmers to access higher-value markets and increase their incomes. For example, processed goods such as packaged coffee, tea, and spices from Tanzania are now able to compete more effectively on the global market.
The Export-Import Bank of India (Exim Bank) has been a key enabler of this transformation, providing the financial backing needed to bring Indian technology and expertise to Tanzania. Through various lines of credit, Exim Bank has facilitated the acquisition of agricultural machinery, equipment, and services from Indian companies. This financial support is critical, as it allows Tanzania to modernize its agricultural sector without taking on unsustainable levels of debt.
Indian companies are making a substantial contribution to Tanzania’s economy, particularly in the agricultural sector. Companies like Mahindra & Mahindra, Tata Group, and Kirloskar Brothers are not just selling products; they are investing in Tanzania’s future. These companies provide essential tools and machinery that are helping to transform the agricultural sector, making it more productive and resilient.
Expanding cooperation
The trade relationship between India and Tanzania is strong, with bilateral trade valued round $4.5 billion. While there is currently no major pending trade agreement specifically focused on agriculture, ongoing discussions between the two countries suggest that the partnership will continue to grow. These discussions are likely to lead to new agreements or amendments to existing ones, expanding cooperation into new areas such as the digital economy and sustainable development.
As Tanzania continues on its path towards agricultural modernisation, the role of India as a partner and a friend will remain crucial. The progress made so far offers a glimpse of what is possible when nations work together towards common goals. This partnership, grounded in mutual respect and shared vision, is helping to sow the seeds of a brighter, more prosperous future for Tanzanian agriculture and beyond.
The collaboration between India and Tanzania in the agricultural sector is a powerful example of how international partnerships can drive meaningful change. This partnership is not just about economic growth; it is about improving the lives of millions of Tanzanians who depend on agriculture for their livelihoods. As the partnership continues to evolve, there is great potential for even greater impact.
