Business

Bank of Tanzania Study Urges Irrigation, Logistics, and Market Reforms to Boost Horticulture Exports

A Tanzania horticulture study shows the sector’s rising share in exports and employment but notes challenges, including low productivity, post-harvest losses, weak logistics, and limited market access. It recommends investment in irrigation, storage, certification, and institutional coordination to strengthen competitiveness and expand exports.

The report shows that horticulture is among the fastest-growing agricultural sub-sectors in Tanzania, recording an average growth rate of 4.9% over the eight years leading to 2019. Its share of total agricultural exports increased to 33.5% in 2020 and 38% in 2022. The sub-sector employs about 4.5 million people, though 90% of the produce is consumed domestically, highlighting significant untapped export potential.

Export Trends and Key Products The study reveals that horticulture exports have developed in two phases. Between 2008 and 2013, export levels remained low. From 2014 onwards, exports experienced a marked upward shift in both value and contribution to foreign earnings, attributed to a more favorable business environment. However, this growth has been accompanied by high volatility, largely due to unstable unit prices and inconsistent supply. Exports are dominated by high-value vegetables, which accounted for 74% of export value between 2014 and 2022. Flowers followed with 13%, while fruits and seeds grew more slowly, reaching USD 23.3 million and USD 15.05 million, respectively, in 2022. The report also notes that while fruit production dominates horticulture output, it lags in export earnings. Flower production, meanwhile, suffered a sharp decline between 2019 and 2020 due to the COVID-19 pandemic.

Read more at: https://www.tanzaniainvest.com/agriculture/bot-horticulture-study

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