Tanzania’s Horticulture Sector Poised for Growth as Stakeholders Address Agro-Logistics Bottlenecks

Public-Private Dialogue in Iringa Charts Path for Investment in Agriculture Logistics

📍 Sunset Hotel, Iringa – 14th March 2025

To enhance Tanzania’s position as a leading horticulture producer in Africa, key stakeholders from the public and private sectors convened in Iringa for a high-level policy dialogue to resolve agro-logistics constraints that continue to stifle sectoral growth.

The event, jointly organized by Trademark East Africa, the Tanzania Private Sector Foundation (TPSF), and SAGCOT Centre Limited (SCL), focused on boosting supply chain efficiency, unlocking new economic opportunities, and accelerating investment in Tanzania’s agricultural sector.

Logistics Barriers Hindering a High-Potential Sector

Tanzania’s horticulture industry has been on an upward trajectory, contributing significantly to employment, foreign exchange earnings, and national revenue diversification.

However, logistical inefficiencies—ranging from high transport costs and inadequate cold storage to regulatory bottlenecks in cross-border trade—continue to hinder its full potential.

“Efficient agro-logistics is not just about moving goods—it’s about preserving value, ensuring food security, and enabling Tanzanian farmers to compete in international markets,” said Prudence Lugendo, Policy Specialist at SAGCOT Centre Ltd.

With horticulture exports expected to grow by double digits over the next five years, stakeholders are calling for urgent infrastructure investments and policy reforms to address these challenges.

Private Sector Engagement in Agro-Logistics Development

The policy dialogue saw participation from SAGCOT partners- agribusiness firms, farmer cooperatives, and export-focused enterprises, including:

• Isowelu AMCOS – Strengthening market access for smallholder farmers.
• Tanzanice – Expanding Tanzania’s footprint in horticulture exports.
• Get Aroma Spices – Advocating for improved logistics to enhance spice export potential.
• ASTA (Avocado Association of Tanzania) – Driving competitiveness in the avocado value chain.
• Mbinga Avocado Farmers Association – Showcasing the expansion of avocado farming and its export potential.
• Gen Agri Company Ltd – Spearheading agribusiness innovation and investment.
• NSHDA-Njombe (Njombe Smallholder Development Alliance) – Enhancing smallholder productivity through training and infrastructure.
• Eat Fresh (GBRI) – Highlighting the critical role of cold chain logistics in reducing post-harvest losses.

Participants underscored the need for public-private partnerships (PPPs) to drive sectoral transformation. Modernizing cold storage, improving transport networks, and streamlining customs procedures were key priorities for long-term sectoral competitiveness.

Investment Imperatives: Infrastructure and Policy Reforms

Tanzania is at a crossroads, with the potential to expand its share in the global horticulture market through targeted investments and regulatory improvements.

✔️ Infrastructure Development – Expanding road networks and improving port connectivity for efficient produce transportation.
✔️ Cold Storage Facilities – Enhancing post-harvest handling to reduce losses and increase export quality.
✔️ Trade Policy Harmonization – Simplifying cross-border trade processes to boost access to high-value markets.
✔️ Incentivizing Private Investment – Creating an enabling environment for agro-logistics investment.

“Tanzania has the resources, climate, and workforce to be an agricultural powerhouse, but logistical inefficiencies are holding back the sector. Addressing these bottlenecks is a national priority,” said a senior TPSF official.

Implications for Economic Growth and Trade

Improving agro-logistics is not just a sectoral issue—it has wider economic implications:

📈 Foreign Direct Investment (FDI) – Increased investor confidence in Tanzania’s agriculture and logistics sector.
🚜 Agricultural Transformation – Enhanced supply chains will boost farmer earnings and rural livelihoods.
🌍 Export Expansion – Strengthened horticulture trade with Europe, the Middle East, and regional markets.
💰 Revenue Diversification – Reducing reliance on traditional exports like minerals and crude oil.

A Commitment to Action

The Iringa policy dialogue concluded with a joint commitment from stakeholders to mobilize investment, foster innovation, and implement policy reforms that will position Tanzania’s horticulture sector as a regional leader.

“This is a defining moment for Tanzania’s agriculture. We must seize the opportunity to modernize agro-logistics and drive sustainable growth,” said Prudence Lugendo.

With momentum building for logistics reforms, industry leaders remain optimistic that the sector will scale new heights—creating a more resilient and competitive horticulture industry that benefits farmers, businesses, and global consumers alike.