The Ministry of Livestock and Fisheries has achieved impressive revenue collection performance in the 2025/2026 fiscal year, with total receipts reaching TSh 66,924,418,062 by April 2026. This represents 85.3% of the annual target and demonstrates growing formalisation of livestock and fisheries trade alongside strengthening of revenue collection systems.

Revenue Performance Overview

The Ministry targeted total revenue collection of TSh 94,105,000,000 for the 2025/2026 fiscal year, comprising TSh 49,900,001,000 from the livestock sector and TSh 44,205,000,000 from fisheries. By April 2026, collections had reached TSh 66,924,418,062, positioning the Ministry to meet or exceed its annual target.

The strong revenue performance reflects several factors: expanding livestock and fisheries production, improved market infrastructure facilitating formal trade, enhanced compliance with regulatory requirements, and modernisation of collection systems. Digital platforms for permit issuance and fee payment are reducing leakage and improving accountability in revenue collection.

Livestock Sector Revenue Streams

The livestock sector generated TSh 34,131,523,471 by April 2026, representing 82% of the targeted TSh 41,583,334,166.67. Multiple revenue streams contribute to this total, each serving specific regulatory and development purposes.

Livestock Movement Permits: The Largest Revenue Source

Livestock movement permits constitute the single largest revenue source, though collections of TSh 10,108,672,124 by April 2026 achieved only 50% of the annual target of TSh 20,087,500,000. Movement permits serve dual purposes: generating revenue for local government authorities and providing basic traceability for disease control.

The lower-than-expected collection suggests either overestimation of the target or challenges in enforcement. Many livestock movements, particularly over short distances within districts, may occur without proper permits. The Ministry is strengthening compliance through enhanced supervision and public awareness campaigns about the importance of movement documentation for disease control.

Movement permits are issued at district level by livestock field officers and veterinary personnel. The permits specify the origin and destination of animals, the number and species being moved, and purpose of movement (sale, breeding, slaughter, or other uses). This information supports disease surveillance and helps prevent movement of animals from disease-affected areas.

Livestock Market Fees Exceed Expectations

Revenue from livestock market fees reached TSh 8,152,166,781 by April 2026, surpassing the annual target of TSh 6,241,666,666.67 by 131%. This exceptional performance indicates robust livestock trade and effective fee collection at designated markets.

Market fees are levied on animals sold through official livestock markets, which provide infrastructure for animal assemblage, inspection, and trade. The fees fund market maintenance, veterinary inspection services, and local government operations. Modern markets with proper facilities encourage traders to use official channels rather than informal trading points.

The growth in market fee collections suggests:

– Expanding livestock trade driven by rising demand

– Improved market infrastructure attracting more traders

– Better fee collection systems reducing leakage

– Growing formalisation of livestock marketing

Several regions have invested in modern livestock markets with facilities including holding pens, loading ramps, weigh bridges, and veterinary inspection areas. These investments make formal markets more attractive to traders and facilitate revenue collection.

Veterinary Service Charges

Veterinary service charges generated TSh 13,163,028,980 by April 2026, achieving 108% of the targeted TSh 12,170,833,333.33. These charges cover a range of services including:

– Vaccination against scheduled diseases

– Treatment of sick animals

– Clinical examinations and diagnostic tests

– Pregnancy testing and breeding soundness evaluation

– Health certification for animal sales and movements

– Export health certificates

– Post-mortem examinations

The strong performance in veterinary service charges reflects both increased demand for animal health services and improved cost recovery. The government’s policy of partial cost recovery for veterinary services helps sustain service delivery whilst keeping services affordable for smallholder farmers.

Private veterinary practitioners increasingly complement government services, particularly in peri-urban areas where commercial livestock production is expanding. The coexistence of public and private veterinary services broadens access whilst creating employment for veterinary graduates.

Export Fees Surge

Export fees collected reached TSh 486,955,898 by April 2026, exceeding the annual target of TSh 366,666,666.67 by 133%. This impressive 33% over-performance indicates growing exports of live animals and strengthening of export documentation systems.

Tanzania exports cattle, goats, and sheep to neighbouring countries including Kenya, Uganda, Rwanda, Burundi, and Democratic Republic of Congo. Export permits ensure that animals meet health requirements of destination countries and comply with regional protocols for animal movement.

The surge in export fee collections may reflect:

– Rising demand for Tanzanian livestock in regional markets

– Improved compliance with export documentation requirements

– Enhanced monitoring of cross-border livestock movements

– Better coordination with customs and border control agencies

The Ministry is working to formalise livestock export trade through designated export routes, improved border inspection facilities, and bilateral agreements with importing countries. Formalisation benefits government through revenue collection, protects animal health, and ensures fair returns to Tanzanian producers.

Breeding Services and Inputs

Sale of semen and liquid nitrogen for artificial insemination generated TSh 279,636,250 by April 2026, representing 78% of the target of TSh 358,333,333.33. The National Artificial Insemination Centre (NAIC) produces and distributes semen from improved breeding bulls, enabling farmers to access superior genetics without maintaining their own bulls.

Revenue from heifer sales reached TSh 1,119,474,400, dramatically exceeding the target of TSh 733,333,333.33 by 153%. Government ranches and breeding centres produce heifers carrying improved genetics for distribution to farmers. The strong demand for heifers indicates farmers’ interest in upgrading their herds and expanding dairy production.

Sale of pasture seeds and hay generated TSh 123,732,700, achieving 74% of the target of TSh 166,666,666.67. Government seed farms produce certified pasture seeds for distribution to farmers establishing improved pastures or restocking degraded rangelands.

Penalty Fees and Fines

Compound fees (fines for regulatory violations) collected TSh 391,054,489 by April 2026, representing only 38% of the annual target of TSh 1,041,667,500. These fines are levied for offences including:

– Operating without required licenses or permits

– Violating animal health regulations

– Trading in animals from disease-affected areas

– Slaughtering animals outside designated facilities

– Marketing adulterated or unwholesome animal products

Lower-than-expected collections may indicate either improved compliance with regulations or challenges in enforcement. The Ministry continues strengthening regulatory enforcement through training of officers, public awareness campaigns, and coordination with local government authorities.

Animal health and marketing permit fees (other than livestock markets) generated TSh 306,801,849, representing 74% of the target. These fees cover various permits and authorisations required for livestock-related businesses and activities.

Fisheries Sector Revenue Performance

The fisheries sector generated TSh 23,787,894,591 by April 2026 from various licensing fees, royalties, and service charges. Revenue collection reflects the sector’s growing economic importance and government efforts to capture appropriate value from fisheries resources.

Export Royalties: Major Revenue Stream

Export royalties on fisheries products totalled TSh 13,557,983,379 by April 2026, achieving 58% of the annual target of TSh 23,413,333,333. Export royalties are levied as a percentage of the value of fish and fisheries products exported from Tanzania.

The 58% achievement rate may reflect seasonal variation in fish production and exports, with higher exports expected during remaining months of the fiscal year. Alternatively, the target may have been overestimated based on optimistic export projections.

Tanzania’s main fisheries exports include:

– Nile perch fillets and products from Lake Victoria

– Dried and smoked dagaa (small pelagic fish)

– Frozen and fresh fish of various species

– Ornamental fish from Lakes Tanganyika and Malawi

– Prawns and other crustaceans from marine waters

Export royalties provide government revenue whilst encouraging value addition. Products exported after processing attract lower royalty rates than raw fish, incentivising domestic processing that creates employment and captures more value within Tanzania.

Import Royalties Exceed Target Dramatically

Import royalties on fisheries products reached TSh 9,251,989,387 by April 2026, exceeding the annual target of TSh 2,500,000,000 by an astounding 370%. This exceptional performance—nearly four times the target—indicates substantial importation of fisheries products.

The imports likely include:

– Fish meal and fish oil for aquaculture and livestock feeds

– Canned and processed fish products for urban markets

– Frozen fish from international waters

– Specialised seafood products for hotels and restaurants

The high import royalty collections raise questions about Tanzania’s fish trade balance. Whilst the country exports substantial quantities of fish, imports of processed fish products and aquaculture inputs are also significant. The Ministry should analyse trade patterns to identify opportunities for import substitution through domestic production and processing.

Movement Permits Performance

Movement permits for fish and fisheries products generated TSh 5,078,243,763, exceeding the target of TSh 3,133,333,333 by 162%. Movement permits track fish movements from landing sites to markets, supporting quality control and revenue collection.

The strong performance indicates growing formalisation of fish trade and improved compliance with movement documentation requirements. Fish traders recognise that proper documentation facilitates market access and reduces risk of confiscation due to regulatory violations.

Fishing Licenses

Fishing and export licenses generated TSh 1,019,798,058, achieving 93% of the targeted TSh 1,095,832,500. These licenses authorise commercial fishing operations and export of fisheries products.

Exclusive Economic Zone (EEZ) fishing licenses yielded TSh 1,709,790,000, representing 55% of the annual target of TSh 3,083,333,333. EEZ licenses allow foreign vessels to fish in Tanzania’s maritime waters under regulated conditions. The licenses generate revenue whilst ensuring that fishing effort remains within sustainable limits.

Prawn fishing licenses collected TSh 25,143,172, achieving 49% of the target. Prawn fishing is concentrated in specific coastal areas and operates on seasonal basis, which may explain the lower collection rate.

Laboratory Services and Compound Fees

Revenue from sale of laboratory services reached TSh 1,115,062,037, representing 70% of the target of TSh 1,583,333,333. Fisheries laboratories provide services including:

– Quality testing of fish and fisheries products

– Disease diagnosis in aquaculture systems

– Water quality analysis

– Microbiological testing for food safety

– Chemical residue analysis

These services support quality assurance for domestic markets and export compliance. Fees charged for laboratory services help sustain operations whilst keeping testing affordable for small-scale fish processors and traders.

Compound fees (penalties) in the fisheries sector totalled TSh 829,493,740, achieving 62% of the target of TSh 1,337,500,000. Fines are levied for violations including:

– Fishing without valid licenses

– Use of prohibited fishing gear or methods

– Fishing in closed areas or seasons

– Harvesting undersized fish

– Operating fish processing facilities without required permits

Market Infrastructure Development

Effective revenue collection requires adequate market infrastructure where formal trade can occur under regulated conditions. The Ministry has invested in market development to facilitate trade and improve revenue collection.

Livestock Markets

Modern livestock markets provide facilities including:

– Holding pens segregated by species and seller

– Water and feeding facilities for animals awaiting sale

– Veterinary inspection areas

– Weighing equipment for accurate pricing

– Loading ramps for transport

– Sanitary facilities and waste management systems

These facilities encourage traders to use formal markets rather than informal trading points, facilitating regulatory compliance and revenue collection. Markets also serve as venues for veterinary services, disease surveillance, and farmer education.

The Ministry is supporting local government authorities to upgrade existing markets and establish new ones in areas with high livestock populations. Revenue from market fees provides sustainable funding for market maintenance and improvement.

Fishing Infrastructure

Fishing landing sites provide essential infrastructure for the fishing industry. Well-designed landing sites include:

– Jetties and boat mooring facilities

– Fish washing and handling areas

– Cold storage and ice-making plants

– Fish market structures

– Vehicle access and parking

– Clean water and sanitation facilities

Proper landing site infrastructure reduces post-harvest losses, improves fish quality, and creates opportunities for revenue collection through landing fees and market charges. The Ministry is constructing new landing sites and upgrading existing ones to support fisheries development.

Digital Revenue Collection Systems

The Ministry is progressively introducing digital platforms for permit issuance, license applications, and fee payment. Digital systems offer several advantages:

– Reduced opportunities for revenue leakage through cash handling

– Real-time tracking of collections and performance against targets

– Easier access to permits and licenses for farmers and traders

– Improved record-keeping and data for planning

– Enhanced transparency and accountability

Mobile money platforms enable farmers and traders to pay fees and receive permits electronically, reducing transaction costs and time. The Ministry is working with telecommunications companies and financial service providers to expand digital payment options.

Revenue Utilisation and Local Government

A significant portion of livestock and fisheries revenues accrues to local government authorities, which are responsible for frontline service delivery including:

– Veterinary and livestock extension services

– Fisheries surveillance and enforcement

– Market operation and maintenance

– Disease control and surveillance

– Registration and licensing

The Ministry provides policy guidance, technical support, and coordination whilst local authorities implement programmes and collect revenues. This decentralised approach brings services closer to farmers and fishers but requires capacity building to ensure effective revenue collection and service delivery.

Challenges in Revenue Collection

Despite strong performance, several challenges affect revenue collection:

Informal Trade

Substantial livestock and fish trade occurs outside formal channels, avoiding regulatory compliance and fee payment. Informal markets, roadside transactions, and direct farm-to-buyer sales bypass official markets and collection points.

Formalisation requires:

– Adequate market infrastructure to attract traders

– Reasonable fee levels that don’t discourage formal trade

– Effective enforcement of regulations

– Benefits that traders recognise (quality services, market information, dispute resolution)

Geographic Dispersion

Livestock and fisheries activities occur across Tanzania’s vast territory, making supervision and enforcement challenging. Remote pastoral areas and distant fishing grounds are difficult to monitor regularly.

The Ministry is using technology including mobile reporting systems, GPS tracking of fishing vessels, and risk-based inspection strategies to improve coverage despite limited staff and resources.

Capacity Constraints

Local government authorities vary in their capacity for revenue collection and service delivery. Some districts lack adequate staff, transport, and equipment for effective supervision of livestock and fisheries activities.

The Ministry provides training and technical support to strengthen local government capacity. However, sustained improvement requires adequate funding for staff, equipment, and operational costs at district level.

Valuation Challenges

Revenue from export royalties and import duties depends on accurate valuation of traded products. Under-declaration of values and transfer pricing reduce government revenue from fish exports.

The Ministry is strengthening valuation systems through market price monitoring, coordination with revenue authorities, and risk-based inspection of export shipments.

Future Directions

The 2026/2027 budget includes measures to enhance revenue collection:

– Expansion of digital payment platforms for fees and licenses

– Strengthening of enforcement systems to improve compliance

– Investment in market infrastructure to facilitate formal trade

– Capacity building for local government revenue staff

– Review of fee structures to ensure they remain appropriate

– Enhanced coordination between Ministry, local authorities, and revenue agencies

Conclusion

Revenue collection performance in 2025/2026 demonstrates growing maturity of Tanzania’s livestock and fisheries sectors. Achievement of 85.3% of the annual target by April 2026 indicates strong momentum and likelihood of meeting or exceeding annual goals.

The strong performance in some revenue streams (market fees, heifer sales, import royalties, movement permits) suggests opportunities to revise targets upwards in future budgets. Conversely, lower performance in livestock movement permits and fisheries export royalties indicates areas requiring attention to improve compliance or adjust targets.

Revenue from livestock and fisheries supports essential government functions including disease control, research and extension, market development, and regulatory enforcement. Improving collection efficiency and expanding the revenue base will enable enhanced service delivery and accelerate sectoral development.

As Tanzania’s livestock and fisheries sectors continue growing, revenue generation will increase correspondingly. Digital systems, improved infrastructure, and strengthened enforcement will ensure that government captures appropriate value whilst supporting sustainable development of these critical sectors.

___________________________________________

For more analysis of East African agricultural economics and policy, visit Kilimokwanza.org.