Report Coverage
This report focuses on the agri-business sector in Tanzania and includes information on its various agricultural products, production and trade, major players, corporate actions, developments and regulations. There are profiles of 22 companies including Kilombero Sugar Company, the largest sugar producer in the country, commercial avocado producer Africado and tea producers such as Mohammed Enterprise and Unilever Tea. Other profiles include Said Salim Bakhresa & Company, which owns wheat, maize and rice mills and coffee companies such as Burka Coffee Estates and Tanganyika Instant Coffee.
Introduction
Tanzania’s economy is heavily dependent on agriculture, which contributed 28.9% to the country’s GDP and had a gross value added of US$16.0bn in 2019, according to the African Statistical Yearbook. Apart from its importance to the economy, agriculture is also the most important sector from a socio-economic point of view, since it employed 17.3 million people, or 65.1% of the labour force, in 2019, according to the International Labour Organisation (ILO). The major food crops are maize, cassava (a root vegetable), rice, potatoes, beans, sweet potatoes, sorghum and bananas, while the main cash crops are coffee, cotton, sugar cane, tea, cashew nuts, tobacco, sesame seed, flowers and sunflower seed. Some of the challenges facing Tanzania’s agri-business sector are the limited use of fertilisers, pesticides and improved seeds, limited use of mechanisation and a reliance on natural rainfall. Other factors influencing the performance of the sector are inadequate storage facilities, poor or non-existent transport infrastructure, weak value chains and limited affordable financial services.
Strengths
• An abundance of land and water resources, and a favourable climate for the production of a variety of crops.
• Globally, a large producer of sisal, sesame seed, sweet potatoes, dry beans and cashew nuts.
• High levels of support from the government, foreign governments and international agencies.
• Tanzania produces larger cashew nuts than other African countries, and its cashew nuts are harvested after the harvest in India and West Africa.
• Tanzanian rice has a unique, sought-after taste and aroma.
Weaknesses
• High levels of post-harvest losses due to inadequate storage facilities.
• Inadequate access to finance and market information.
• Inadequate production levels of wheat, oilseeds and sugar to satisfy domestic demand.
• Increasing deforestation, soil degradation and desertification that reduce agricultural productivity.
• Lack of agricultural equipment.
• Most smallholders cannot afford production inputs like fertilisers, pesticides and improved seeds.
• The majority of crops are grown by relying on rain-fed agriculture, which increases vulnerability to adverse weather conditions.
• Weak value chains.
Opportunities
• High export demand for horticultural products, especially avocados and spices.
• New president Samia Hassan could open the country to more foreign investment.
• Trend towards consuming organic and sustainably produced food, especially in markets such as the European Union and United States.
• Wheat, oilseeds and sugar production opportunities, as local demand for these outstrips supply.
Threats
• Increasing production costs.
• Lower demand due to the impact of the coronavirus pandemic.
• Poor transport infrastructure leads to high transportation costs.
Outlook
The building installations sector faces constrained growth as the pandemic has slowed the construction of new buildings, particularly in the non-residential sector. National Treasury forecasts that the economy will grow by 3.3% in 2021, following a 7% contraction in 2020 (including a 20.3% contraction in the construction sector). However, as of Q1 2021 business confidence remained subdued and it is unclear when the number of new installations will return to pre-pandemic levels. Despite this, the drive by property owners to reduce carbon emissions by developing green buildings and improve energy efficiency by reducing their reliance on the electricity grid is expected to provide a number of opportunities for installers, particularly those involved with solar installations (solar PV, solar water heating and heat pumps). The South African Photovoltaic Industry Association says given continued load-shedding the outlook for solar PV is “incredibly positive”. While the gazetting in July 2020 by the Department of Public Works and Infrastructure of several strategic infrastructure projects (SIPs), including R138bn housing projects, present opportunities for those fitting new building installations, it will be dependent on how quickly these can get off the ground.
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The Agri-Business Sector in Tanzania 2017-11-27
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View Report Add to CartThe Agri-Business Sector in Tanzania 2015-02-27
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View Report Add to CartTable of Contents
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1. | INTRODUCTION | 1 |
2. | COUNTRY INFORMATION | 1 |
2.1. | Geographic Position | 2 |
3. | DESCRIPTION OF THE INDUSTRY | 8 |
3.1. | Industry Value Chain | 14 |
4. | SIZE OF THE INDUSTRY | 19 |
5. | STATE OF THE INDUSTRY | 21 |
5.1. | Local | 21 |
5.1.1. | Trade | 28 |
5.1.2. | Corporate Actions | 31 |
5.1.3. | Regulations | 31 |
5.2. | Continental | 32 |
5.3. | International | 33 |
6. | INFLUENCING FACTORS | 34 |
6.1. | Coronavirus | 34 |
6.2. | Economic Environment | 35 |
6.3. | Government Incentives and Support | 35 |
6.4. | Foreign Aid | 37 |
6.5. | Technology, Research and Development (R&D) and Innovation | 39 |
6.6. | Environmental Concerns | 40 |
6.7. | Labour | 40 |
7. | COMPETITION | 41 |
7.1. | Barriers to Entry | 42 |
8. | SWOT ANALYSIS | 42 |
9. | OUTLOOK | 43 |
10. | INDUSTRY ASSOCIATIONS | 43 |
11. | REFERENCES | 44 |
11.1. | Publications | 44 |
11.2. | Websites | 45 |
COMPANY PROFILES | 49 | |
AFRICADO LTD | 49 | |
BIOSUSTAIN TANZANIA LTD | 50 | |
BURKA COFFEE ESTATES LTD | 52 | |
CETAWICO LTD | 54 | |
CHAI BORA LTD | 56 | |
HILL ANIMAL FEEDS & AGROVET SUPPLIES COMPANY LTD | 58 | |
KAGERA SUGAR LTD | 59 | |
KILOMBERO PLANTATIONS LTD | 61 | |
KILOMBERO SUGAR COMPANY LTD | 63 | |
MIKOANI TRADERS LTD | 65 | |
MOHAMMED ENTERPRISE TANZANIA LTD | 66 | |
MTIBWA SUGAR ESTATE LTD | 68 | |
OLAM TANZANIA LTD | 70 | |
QUTON TANZANIA LTD | 72 | |
RUAHA MILLING COMPANY LTD | 73 | |
SAID SALIM BAKHRESA & CO LTD | 74 | |
SEED CO TANZANIA LTD | 75 | |
SERENGETI FRESH LTD | 77 | |
TANGANYIKA INSTANT COFFEE PLC | 78 | |
TATEPA PLC | 80 | |
TPC LTD | 82 | |
UNILEVER TEA TANZANIA LTD | 84 |