Agriculture is the backbone of Tanzania’s economy, contributing around a quarter of GDP and employing three quarters of the labour force in this country of 44 million people.
Tanzania, which is one of Sustainable Energy for All’s 14 African priority countries, is currently struggling to expand modern energy access, which is still not available to some two-thirds of the population. At the same time, only 9% of Tanzania’s population has access to formal financial services, and only 4% has ever received a loan from a bank – a situation that has stifled investment in the agriculture sector.
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Background
Agriculture is the backbone of Tanzania’s economy, contributing around a quarter of GDP and employing three quarters of the labour force in this country of 44 million people. Tanzania’s staple crop is maize, in which it is largely self-sufficient; however, increasing droughts and harvest losses are endangering this, further stressing the 34% of the population below the income poverty line.
Tanzania’s rapid GDP growth of some 6–7% annually over the past decade has come in large part from the agricultural sector, including fibers (e.g. cotton), coffee, tea, sugar, fruits, nuts (particularly cashews) and oils. Much of this growth has come from advancements in farming and harvesting; for Tanzania to maintain its economic growth and generate prosperity it must concentrate on the potential in postharvest value-added, which has received less attention from government programmes.
Purpose
Adequate post-harvest processing to maintain added value within local agrifood value chains will require both energy and financing. Tanzania, which is one of Sustainable Energy for All’s 14 African priority countries, is currently struggling to expand modern energy access, which is still not available to some two-thirds of the population. At the same time, only 9% of Tanzania’s population has access to formal financial services, and only 4% has ever received a loan from a bank – a situation that has stifled investment in the agriculture sector.