By Adeline Ndesanjo, CEO, Synergy Africa Limited

A Historic Turning Point: Tanzania’s Bold Declaration of Agricultural Sovereignty

The commissioning of the ITRACOM Fertilizer Factory on June 28, 2025, by Her Excellency President Samia Suluhu Hassan, represents far more than a mere ceremonial event; it signifies a profound declaration of Tanzania’s unwavering commitment to agricultural self-sufficiency, economic resilience, and its burgeoning role as a regional leader. This strategic move marks a decisive shift from a long-standing reliance on external inputs to fostering homegrown solutions, fundamentally reshaping the agricultural landscape and signaling a new era of industrial empowerment for the nation.

This event is deeply symbolic of sovereignty and self-determination. For decades, Tanzania has grappled with an overwhelming dependency on imported fertilizers, with over 90% of its demand historically met by foreign sources, primarily from countries like Russia. This dependence rendered the nation highly susceptible to global supply chain disruptions and geopolitical tensions, which often resulted in significant price spikes for essential agricultural inputs. The establishment of a large-scale domestic production facility like ITRACOM, boasting an impressive 1 million-tonne annual capacity, directly addresses this vulnerability. The direct involvement of President Samia Suluhu Hassan in the factory’s commissioning elevates this achievement beyond a commercial opening, transforming it into a national strategic imperative. This move is not solely about economic efficiency; it stands as a powerful statement of national sovereignty and a deliberate de-risking of the agricultural sector from external shocks. By securing a critical input domestically, Tanzania enhances its food security, stabilizes its rural economy, and strengthens its geopolitical position, offering a replicable model for other African nations striving for greater self-reliance.  

The Burden of the Past: Overcoming Decades of Dependency and Vulnerability

For decades, Tanzanian agriculture has been constrained by a pervasive reliance on imported fertilizers. More than 90% of the country’s fertilizer demand has historically been satisfied by imports, largely originating from nations such as Russia. This over-reliance exposed Tanzania to acute vulnerabilities stemming from global supply chain disruptions and geopolitical instability, which directly translated into volatile and often prohibitive input costs for its farmers. The financial strain was evident as the fertilizer import bill surged by an alarming 155%, from $237 million in the 2020/21 fiscal year to $605.4 million in 2022/23, even as import volumes paradoxically decreased by 40% due to soaring global prices. This persistent volatility, exacerbated by events such as the COVID-19 pandemic and the Russia-Ukraine conflict, underscored the urgent imperative for domestic production.  

Tanzanian farmers have consistently contended with unreliable fertilizer supplies and escalating costs, factors that have severely curtailed agricultural productivity and undermined their competitiveness. The average fertilizer application rate in Tanzania stood at a mere 19.1 kg/ha in 2022, a figure significantly below both recommended levels and the global average of 133 kg/ha. This low application rate directly contributes to subdued crop yields, particularly prevalent in rain-fed, traditional farming systems. Moreover, farmers in remote villages faced disproportionately higher costs, paying between 40% and 55% more for fertilizer due to substantial transportation expenses and inadequate infrastructure. The total “trade costs,” encompassing time and effort, were estimated to be four times higher than direct travel expenses. These persistent market access issues frequently rendered inputs unprofitable, even when government subsidies were available.  

The sharp increase in global fertilizer prices, particularly from early 2022, had a direct and detrimental impact on Tanzanian farmers. In response to this crisis, the government initiated a substantial fertilizer subsidy program in August 2022 for the 2022/23 season. This intervention dramatically reduced prices for key fertilizers by approximately 50%, with DAP dropping from 131,675/- to 70,000/- per bag and Urea from 124,714/- to 70,000/-. This subsidy, amounting to TZS 150 billion in 2022/23, benefited over 560,000 farmers and contributed to a notable increase in national fertilizer usage, rising from 360,000 tons in 2021/22 to 800,000 tons in 2024.  

The historical context reveals a vicious cycle of import dependence and suppressed productivity. The high import dependency directly leads to vulnerability to global price shocks. These elevated and volatile prices, compounded by significant internal transportation and trade costs, render fertilizers unaffordable or unprofitable for many farmers. This, in turn, results in exceptionally low fertilizer application rates, which severely constrains crop yields and overall agricultural productivity. The consequence is a perpetual state of underperformance in a sector that is vital for national food security and livelihoods. While the government’s subsidy program has been effective in boosting usage, it functions as a reactive measure to a systemic problem, highlighting the fundamental necessity of a more profound structural shift. This situation illustrates how external market forces, combined with internal logistical inefficiencies, create a significant impediment to agricultural potential. Achieving food security and economic growth requires not merely increasing inputs, but fundamentally altering the supply and cost structures to ensure those inputs are consistently accessible and affordable to the majority of farmers.

To further illustrate Tanzania’s fertilizer landscape and the transformative shift underway, several key metrics demonstrate the scope of change between 2020 and 2025.

In 2020, we were unable to find data in public sources for total fertilizer demand, but by 2021, it had reached approximately 698,260 metric tons. This demand grew further to 848,884 metric tons in 2022 and remained around that level through 2023 and 2024. Looking ahead, by 2030, national demand is projected to more than double to about 2.1 million metric tons.

Total fertilizer availability has also expanded. Although figures for 2020 and 2021 were unavailable in public sources, by 2022 availability had climbed to roughly 819,442 metric tons, rising further to over 1,052,218 metric tons in both 2023 and 2024. With the scaling up of production at Minjingu and the commissioning of the ITRACOM facility, availability is expected to reach at least 1.2 million metric tons in the near term.

Imported fertilizer volumes have historically dominated the market. In 2020, Tanzania imported about 662,868 metric tons. This volume fell to 395,033 metric tons in 2021 but rebounded to over 611,651 metric tons in 2022, a level that persisted into 2023 and 2024. However, with domestic production rising, imports are projected to be significantly reduced in 2025 and beyond.

Domestically produced fertilizer volumes were negligible in 2020, but production began to scale up in 2021 with 32,239 metric tons manufactured locally. By 2022, domestic output had increased to approximately 84,696 metric tons and more than doubled again to about 158,628 metric tons in both 2023 and 2024. The commissioning of the ITRACOM factory is set to boost domestic production capacity to 1 million metric tons annually, marking a major structural shift.

The percentage of demand met by imports consistently exceeded 90% in 2020, 2021, and 2022. This figure improved moderately to about 72% in 2023 and 2024 and is expected to fall substantially as local manufacturing capacity comes online. Correspondingly, the percentage of demand met by local production has risen from less than 10% in the early years of the decade to around 18% by 2023 and 2024, with projections indicating a significantly higher share in the near future.

Average fertilizer application rates have also shown improvement. While no consolidated figure was found in public sources for 2020, the rate was estimated at only 9.3 kilograms per hectare in 2021, increasing to 19.1 kilograms per hectare in 2022. Although more recent data were pending at the time of reporting, this trend suggests further gains are likely as domestic supply grows and prices stabilize. For comparison, the global average application rate stood at approximately 133 kilograms per hectare.

It is important to note that these data points may reflect different reporting periods, such as fiscal year versus calendar year, or may pertain to specific fertilizer types. Projections are based on stated production capacities and Tanzania’s national agricultural development goals..

ITRACOM: Forging a Path to Self-Sufficiency and Sustainable Growth

The ITRACOM Fertilizer Factory, representing a substantial investment of USD 180 million, signifies a monumental leap forward for Tanzania. This facility is not only the country’s second fertilizer manufacturing plant but also stands as the largest of its kind across East and Central Africa. Having commenced operations in December 2022, the factory boasts an impressive annual production capacity exceeding one million tonnes of organo-mineral fertilizers. This capacity alone marks a transformative achievement, especially when considering that Tanzania’s total domestic fertilizer production was only 158,628 tonnes in 2023/24, with total fertilizer availability reaching 1,052,218.4 tons by April 2024. ITRACOM operates as a subsidiary of FOMI Fertilizers, a Burundi-based company recognized for its organo-mineral blends. Its product portfolio includes specialized FOMI-branded fertilizers such as FOMI Otesha, FOMI Kuzia, and FOMI Nenepesha, which are meticulously formulated to suit diverse crop and soil conditions across Tanzania’s varied agro-ecological zones.  

The factory’s local production capability directly addresses the long-standing challenges of unreliable supply and prohibitive costs that have historically burdened Tanzanian farmers. By producing fertilizers domestically, ITRACOM is poised to stabilize supply chains, significantly reduce the nation’s vulnerability to volatile global market fluctuations, and lower costs for farmers, thereby making high-quality inputs more consistently accessible. The government’s proactive strategy to procure 200,000 tonnes of domestically produced fertilizer and 50,000 tonnes of agricultural lime for subsidized distribution to farmers currently not utilizing fertilizer further underscores its unwavering commitment to ensuring widespread farmer access and boosting consumption.  

The strategic adoption of organo-mineral fertilizer technology is a critical dimension of this breakthrough, aligning perfectly with principles of sustainable agriculture and environmental stewardship. These fertilizers integrate the beneficial features of mineral nutrients with organic components, leading to more efficient nutrient utilization and promoting long-term soil health. Unlike conventional chemical fertilizers, which can contribute to soil degradation and increased salinity over time, organo-mineral variants actively regenerate soils by introducing organic matter, improving soil structure, enhancing moisture retention, boosting microbial activity, and regulating pH levels. This approach holds particular significance for Tanzania, where approximately 90% of farming areas are reported to be deficient in organic matter. Furthermore, by upcycling food and green waste, organo-mineral fertilizers contribute substantially to a circular economy and exhibit a lower carbon footprint, directly addressing pressing environmental concerns.  

This development signifies a holistic approach to agricultural resilience and sustainability, extending beyond mere yield enhancement. The extensive benefits of organo-mineral fertilizers, including improved soil structure, increased water retention, enhanced microbial activity, reduced nitrate leaching, and the ability to bind heavy metals, highlight a commitment to the long-term health of agricultural land. This stands in stark contrast to the concerns raised by former Prime Minister Mizengo Pinda regarding the potential damage to soil health from the overuse of chemical fertilizers. The fact that a vast majority of Tanzanian soils lack organic matter makes the choice of this technology even more strategic. This indicates that Tanzania’s fertilizer breakthrough is not simply an economic investment aimed at increasing production volume; it represents a forward-thinking, ecological investment in the enduring health and resilience of its agricultural land. By prioritizing organo-mineral fertilizers, Tanzania is cultivating a more sustainable food system that mitigates environmental impact, enhances soil fertility for future generations, and positions itself as a leader in climate-smart agricultural practices within the region. This marks a fundamental shift from short-term output maximization to long-term ecological and economic sustainability.  

Beyond Fertilizers: The Ripple Effect on Tanzania’s Economy and Communities

The ITRACOM factory has already created 1,805 direct jobs and is projected to generate thousands more, both directly and indirectly, across its entire value chain—encompassing production, packaging, transport, and distribution. This expansive ripple effect holds particular significance for rural communities like Nala and the broader Dodoma region, where employment opportunities and ancillary services are flourishing, contributing to improved livelihoods for millions of Tanzanians. This outcome aligns seamlessly with the government’s ambitious “Agenda 10/30” and “Building a Better Tomorrow” (BBT) initiatives, which explicitly aim to create 1.5 million youth jobs and enhance the participation of youth and women in the agricultural sector by 2030.  

Local fertilizer production is a cornerstone of national food security, facilitating higher yields and ensuring a consistent food supply. With Tanzania’s population projected to reach 80 million by 2030, necessitating an increase in food production from the current 13 million metric tons to 20 million metric tons, increased and sustainable fertilizer use is absolutely inevitable. Tanzania has maintained a commendable food sufficiency rate of over 120% in the past five years , and agricultural exports have surged impressively from USD 2.33 billion in 2022/23 to USD 3.54 billion in 2023/24. The factory will further enhance the competitiveness of agricultural exports by providing affordable, high-quality, and locally available inputs, thereby reducing reliance on costly imports.  

Tanzania is rapidly positioning itself as a fertilizer production powerhouse and a leading agricultural hub in East and Central Africa. Its strategic geographical location, providing six landlocked countries with the most cost-effective entry and exit points for goods, presents a significant and expanding opportunity for the fertilizer business and broader agricultural trade. The inauguration event, attended by regional leaders including the President of Burundi and agriculture ministers from the East African Community (EAC) and the Southern African Development Community (SADC), underscores this regional ambition. The expressed interest from Uganda to establish a similar factory based on ITRACOM’s model, utilizing local raw materials like cow dung, further solidifies Tanzania’s emerging leadership and replicable success. Tanzania already ranks second in East Africa for agricultural GDP, with USD 4.11 billion in Q4 2024, trailing only Ethiopia , and serves as a vital supplier of grain to regional markets like Kenya, which heavily relies on maize and rice imports.  

This demonstrates a powerful economic multiplier effect where a foundational industrial investment, particularly one deeply integrated into the agricultural value chain, catalyzes broader rural development. Direct job creation at the factory leads to increased local purchasing power and demand for goods and services. The factory’s output of affordable and accessible fertilizer boosts farmer productivity and income. This increased farmer income, in turn, further stimulates rural economies, fostering the growth of ancillary services, transport, and distribution networks. This dynamic aligns directly with the government’s youth employment agenda. Such a development shifts rural communities from predominantly subsistence-oriented economies to more dynamic, market-integrated hubs, contributing significantly to poverty reduction and inclusive growth. This represents a strategic pathway to leveraging agriculture for industrialization and overall national development.

The Synergy of Success: A Blueprint for Catalytic Partnerships

The success of the ITRACOM project stands as a powerful testament to the effectiveness of collaborative investment and the profound “synergy” that emerges when diverse stakeholders align for a common purpose. President Samia Suluhu Hassan’s visionary leadership continues to inspire a bold national agenda, one focused on proactively building Tanzania’s own capacity, investing strategically in its people, and securing its food systems from the ground up. The Ministry of Agriculture, under the exemplary stewardship of Hon. Hussein Bashe, has provided the essential policy environment and steadfast support, actively encouraging domestic fertilizer production utilizing locally available raw materials and advocating for robust private sector participation to reduce inefficiencies. This commitment is further demonstrated by the significant increase in the Ministry’s budget by 29.2% from 2022/23 to 2023/24.  

CRDB Bank, as Tanzania’s largest financial institution, has played a critical role in enabling large-scale, impactful ventures. While the specific financing details for ITRACOM’s $180 million investment are not explicitly detailed in the provided information, CRDB Bank’s extensive and strategic involvement in agricultural financing is abundantly clear. The bank has an exposure of TZS 1.3 Trillion (approximately USD 450 million) in the agricultural sector, representing a substantial 43% of total agricultural financing in Tanzania. CRDB offers various investment and project financing solutions, including “Green Bond Loans” for environmentally focused projects and “TACATDP” (Tanzania Agricultural Climate Adaptation and Transformation Development Project), which specifically supports eco-friendly farming and organic fertilizers. Crucially, CRDB also designed the digital platform for the government’s fertilizer subsidy supply chain, linking producers, importers, agro-dealers, and farmers, thereby streamlining distribution and management and reducing logistical challenges. Its robust partnerships with international development finance institutions like IFC and Proparco further boost its capacity to finance Micro, Small, and Medium Enterprises (MSMEs), including those in agriculture and women-led businesses, reinforcing its commitment to inclusive growth.  

ITRACOM Fertilizers Limited, as a private investment and a subsidiary of Burundi-based FOMI Fertilizers, brings cutting-edge organo-mineral technology, operational expertise, and a commitment to sustainable farming practices. Synergy Africa Limited, as a professional services firm specializing in Financial Consultancy, Project Development, Organizational Development, and Risk Management within productive sectors like agribusiness, stands ready to champion, support, and invest in initiatives that accelerate agricultural transformation. The role of such firms is to identify, facilitate, and de-risk catalytic partnerships, ensuring that visionary leadership and strategic financing converge with private sector innovation for systemic change.  

The government’s substantial fertilizer subsidy program, initiated in August 2022 with TZS 150 billion, dramatically reduced fertilizer prices for farmers. This program, combined with an online farmer registration system designed to ensure efficient distribution and prevent smuggling, has been instrumental in increasing national fertilizer usage from 360,000 tons in 2021/22 to 800,000 tons in 2024. The continued plan to purchase 200,000 tonnes from domestic manufacturers for subsidized distribution further reinforces this commitment to making inputs affordable and accessible.  

The success of ITRACOM is not solely attributable to the factory itself; it is a direct consequence of an enabling environment. Government policies, including Minister Bashe’s advocacy, the Agenda 10/30, and increased budget allocations, actively attract private investment. Financial institutions like CRDB provide the necessary capital and innovative financing mechanisms, including digital platforms for distribution. Private companies like ITRACOM contribute technological innovation and operational capacity. Strategic partners help bridge these diverse elements and facilitate their convergence. The subsidy program, while a direct financial intervention, also functions as a policy tool to stimulate demand and adoption, thereby enhancing the viability of private investment. This highlights that true agricultural transformation in Africa necessitates a sophisticated, multi-stakeholder approach. It is a complex interplay where visionary public policy de-risks and incentivizes private sector engagement, and robust financial ecosystems provide the necessary capital. The ITRACOM project serves as a compelling case study for how coordinated, purposeful action across government, financiers, and the private sector can deliver transformative results, offering a blueprint for future large-scale development projects across the continent.  

Charting the Next Frontier: Scaling Agricultural Transformation Across Tanzania

The resounding success of the ITRACOM model provides a powerful blueprint for future endeavors. The same collaborative spirit, strategic ambition, and commitment to public-private partnerships must be replicated and scaled to truly transform Tanzania’s agricultural landscape beyond fertilizer production. This represents the next frontier for ensuring comprehensive food security and economic prosperity.

Specific opportunities for replication and scaling include:

Smart Irrigation

Despite government plans and the critical need for climate change adaptation, farmers’ use of irrigation technologies remains low. Initiatives such as Save the Needy Tanzania’s “Kilimo na Vijana Project” are already making strides, empowering youth and women with climate-smart irrigation technologies. These efforts focus on efficient water management for horticulture, precision irrigation, organic farming techniques, and sustainable water conservation methods. The government’s plan to roll out small-scale irrigation systems and develop model schemes across the country, emphasizing climate-smart approaches that anticipate future climate change effects, offers a clear path forward. Expanding investment in water harvesting technologies and promoting innovative, low-cost solutions like drip irrigation using recycled materials (e.g., plastic bottles) can significantly boost productivity and build resilience against drought.  

Mechanized Farming

The pervasive reliance on labor-intensive farming practices continues to hinder productivity and often places a heavy burden, particularly on women. Innovations like the Multi-Crop Thresher (MCT), developed by Imara Tech and introduced through partnerships with Helvetas Tanzania and the Alliance of Bioversity International and CIAT, are proving to be game-changers. The MCT dramatically reduces labor drudgery, cuts post-harvest losses, improves grain quality, and crucially, creates jobs, especially for women and youth. Projects like UKIJANI are already bringing these modern agricultural technologies directly to rural communities, empowering women and youth to diversify their enterprises, increase earnings, and assume leadership roles. Scaling these mechanization efforts is paramount for modernizing the sector, improving efficiency, and making agriculture a more attractive and profitable venture for younger generations.  

Climate-Smart Seed Technologies

Building long-term resilience against persistent climate shocks and evolving pest pressures requires consistent access to improved, climate-resilient seed varieties. Initiatives like the Adaptation and Resilience ClimAccelerator in Tanzania are actively supporting promising ventures such as Mbegu Nzuri Biotech Farms Ltd, which focuses on increasing access to drought-tolerant and pest-resistant seed varieties that help farmers maintain productivity despite increasingly challenging growing conditions. Furthermore, innovative solutions like Rada 360 provide localized climate data and agricultural recommendations directly to smallholder farmers, empowering them to adapt their farming practices to changing weather patterns. Continued investment in agricultural research and development (R&D) and the establishment of robust, efficient distribution channels for these advanced seeds are vital for ensuring consistent yields and food security.  

Innovative Financing Mechanisms Tailored for Smallholder Farmers

Despite agriculture’s immense contribution to Tanzania’s GDP and employment, access to finance remains a major hurdle for smallholder farmers, women, and youth, with banks historically providing only 3% of their loans to the agricultural sector. Programs like the USAID-funded “Feed the Future Tanzania Agri-Finance Project” and AFD’s credit line to the Tanzanian Agricultural Development Bank (TADB) are actively working to improve access to credit, provide essential financial literacy training, and develop tailored agri-finance products. Establishing robust Smallholder Credit Guarantee Schemes (SCGS) and leveraging digital platforms, as CRDB Bank has successfully done for fertilizer distribution, can effectively de-risk lending for financial institutions and incentivize them to serve the predominantly rural clientele more effectively.  

For the full, transformative benefits of these innovations to be realized, complementary efforts are absolutely essential. This includes extensive farmer education and practical training on the efficient and correct application of new inputs and technologies, as highlighted by ITRACOM’s managing director. Without proper knowledge, the effectiveness of even the best inputs can be undermined, and incorrect use can be harmful. Furthermore, improving critical infrastructure, particularly poor road networks and weak logistics, is paramount to prevent delays in input delivery and product distribution, ensuring efficiency across the entire agricultural value chain.  

The focus on fertilizer is significant, but the expansion into irrigation, mechanization, seeds, and finance, coupled with concerns about farmer education and infrastructure, reveals that a single intervention, no matter how substantial, is insufficient for comprehensive transformation. This underscores the ecosystemic nature of agricultural transformation, highlighting that it is not a linear process or a singular solution, but rather a complex, interconnected system. Investments in one area, such as fertilizer production, yield maximum returns only when complementary factors—including knowledge transfer, efficient logistics, access to water, appropriate tools, and capital—are also systematically addressed. A holistic, integrated approach to policy, investment, and capacity building is therefore crucial for achieving sustained, systemic change and avoiding isolated, short-lived improvements.

To provide a structured overview of these critical future investment areas, it is important to highlight the key pillars of Tanzania’s agricultural transformation and the way they interconnect to drive impact.

One pillar is smart irrigation, which aims to address water scarcity, inefficient water use, and vulnerability to climate change. Current initiatives and technologies under this pillar include the Kilimo na Vijana Project, government-led small-scale irrigation schemes, and the adoption of low-cost drip irrigation methods such as using plastic bottles. These efforts are anticipated to enhance water use efficiency, increase agricultural productivity, and strengthen climate resilience. Relevant stakeholders and partners actively supporting this pillar include Save the Needy Tanzania, the Ministry of Agriculture, and farming communities themselves.

Another pillar is mechanized farming, targeting challenges such as labor drudgery, high post-harvest losses, and persistently low productivity. Prominent interventions include the deployment of the Multi-Crop Thresher (MCT) and the activities of the UKIJANI Project. The expected benefits are substantial, ranging from reducing the physical burden of farm work and improving grain quality to creating new jobs, particularly for women and youth. Key collaborators in this space include Imara Tech, Helvetas Tanzania, and the Alliance of Bioversity International and CIAT.

Climate-smart seed technologies form a third pillar, addressing climate shocks, pest pressures, and yield volatility. Initiatives such as the Adaptation and Resilience ClimAccelerator, Mbegu Nzuri Biotech Farms Ltd, and Rada 360 are introducing seeds and practices tailored to withstand drought and pests, while also providing localized climate data to support adaptation strategies. These interventions are expected to deliver more consistent yields and bolster resilience in farming systems. Among the principal partners driving this work are SmartLab, Climate KIC, Mbegu Nzuri Biotech Farms Ltd, and Rada 360.

A fourth pillar focuses on innovative financing for smallholders, tackling constraints like limited access to capital, lender risk aversion, and insufficient financial literacy among farmers.

A Thriving Future: Seizing the Momentum for Generations to Come

Her Excellency President Samia’s visionary leadership continues to inspire a comprehensive national agenda—one where Tanzania proactively builds its own capacity, invests strategically in its people, and secures its food systems from the ground up. The commissioning of the ITRACOM Fertilizer Factory is not merely the opening of a state-of-the-art facility; it is the symbolic opening of a transformative new chapter in Tanzania’s compelling story of self-reliance, agricultural prosperity, and regional leadership.

The momentum generated by the ITRACOM breakthrough must be seized and amplified across the entire agricultural value chain. By deepening partnerships across government, the private sector, financial institutions, and local communities, and by relentlessly pursuing innovation, infrastructure development, and farmer empowerment, the seeds of progress planted today can yield a thriving, food-secure, and economically resilient Tanzania for generations to come. This aligns with Tanzania’s ambitious targets under Agenda 10/30, aiming for a 10% crop sub-sector GDP growth and USD 5 billion in agricultural exports by 2030. The time to act is now, with coordinated purpose and unwavering ambition