Soya: A Transformational Crop for Africa and Tanzania’s Path to the Top

Special Correspondent

Across Africa, agriculture remains the backbone of many economies, employing most of the population and serving as a key driver of economic development. Yet, food security remains elusive, and the continent spends billions annually on importing basic foodstuffs, including high-protein crops like soybeans. Finding a crop that can meet local nutritional needs and drive economic growth has never been more pressing. One such crop that has emerged as a beacon of hope is soybean. Often referred to as the “miracle crop” for its versatility and nutritional value, soybean has the potential to revolutionize Africa’s agricultural landscape. Among the countries looking to harness this potential, Tanzania has a unique opportunity to become a leader in soybean production and processing.

With favourable climatic conditions, expansive arable land, and a strategic position within the East African region, Tanzania is well-positioned to become a key player in Africa’s soybean industry. Moreover, the Southern Agricultural Growth Corridor of Tanzania (SAGCOT), a public-private partnership aimed at driving agricultural transformation, is championing the growth of the soybean sector. By enhancing productivity, value addition, and market access, SAGCOT’s initiatives could propel Tanzania to the top of Africa’s soybean value chain.

The Growing Demand for Soybeans in Africa

Africa’s demand for soybeans has been growing steadily over the past decade, driven by the increasing need for protein sources for human consumption and as a critical ingredient in animal feed. The continent’s rising population, coupled with a burgeoning middle class, has led to a surge in the consumption of soy-based products such as soy milk, tofu, and meat substitutes. At the same time, the expansion of poultry and livestock industries has further fueled the demand for soybean meal, an essential protein supplement in animal feed.

Despite the rising demand, Africa’s soybean production has not kept pace, leading to a reliance on imports from countries like the United States, Brazil, and Argentina. In 2022 alone, Africa imported over 4 million metric tons of soybeans and soybean products, amounting to billions of dollars. This dependency on imports not only strains foreign exchange reserves but also misses an opportunity for local economies to capitalize on a high-value crop.

Why Tanzania is Poised to Lead in Africa’s Soybean Sector
While several African countries, including Nigeria, Zambia, and South Africa, have made strides in soybean production, Tanzania has unique advantages that position it to become a top producer and exporter. With over 44 million hectares of arable land, fertile soils, and diverse agro-ecological zones, Tanzania offers ideal soybean-growing conditions. The Southern Highlands, in particular, are known for their favourable climate, which supports high soybean yields.

Furthermore, Tanzania’s geographical position as a gateway to East and Southern Africa provides access to regional markets, including Kenya, Uganda, and the Democratic Republic of Congo, where demand for soybeans is rapidly increasing. This strategic location, combined with improving infrastructure and trade facilitation through ports like Dar es Salaam, positions Tanzania as a key supplier to both regional and international markets.

But Tanzania’s greatest asset is the commitment shown by initiatives like SAGCOT, which are working tirelessly to unlock the potential of the soybean value chain. SAGCOT’s focus on increasing productivity, strengthening value chain linkages, and facilitating investments in processing has created a robust framework for the sector’s growth.

SAGCOT’s Role in Transforming Tanzania’s Soybean Sector
SAGCOT’s vision for the soybean sector goes beyond just increasing production; it aims to create a complete ecosystem supporting all value chain stages. This includes enhancing productivity and seed access, improving value addition and processing, building market linkages, and facilitating export growth.

To enhance productivity, SAGCOT has partnered with research institutions and seed companies to promote the adoption of high-yielding, disease-resistant seed varieties like Uyole 4. Through these efforts, the use of certified seeds has increased significantly, leading to yield improvements from 0.721 tonnes/ha to over 1.5 tonnes/ha in pilot areas. With the right inputs and agronomic practices, yields could reach 2.5 tonnes/ha, tripling current production levels.

Regarding value addition, SAGCOT advocates for investment in local processing facilities to produce soy flour, soy milk, and other soy-based foods. These facilities add value and create employment opportunities, particularly for women and youth, contributing to inclusive growth. Establishing structured markets and the Warehouse Receipt System (WRS) by SAGCOT reduces price volatility and ensures farmers receive fair prices for their produce. Furthermore, digital platforms are being introduced to connect farmers directly with processors and exporters, eliminating the need for intermediaries.

With growing demand from international markets like China, India, and the Middle East, Tanzania’s soybean sector is poised to contribute significantly to the country’s export earnings. SAGCOT is working to position Tanzania as a competitive player in the global soybean market by supporting the establishment of export-standard processing facilities and improving compliance with international quality standards.

Overcoming Challenges to Realize Tanzania’s Soybean Potential

Despite progress, several challenges still hinder the full realization of Tanzania’s soybean potential. These include limited access to finance, climate variability, and weak coordination across the value chain. Less than 10% of soybean farmers have access to formal credit, limiting their ability to invest in inputs and technology. Addressing this challenge will require innovative financial solutions, including crop insurance schemes and tailored loan products for farmers.

Like many African countries, Tanzania is vulnerable to the impacts of climate change. Promoting climate-smart agriculture, such as conservation tillage and intercropping with maize or sunflower, will be crucial to ensuring the resilience of soybean farming systems. Fragmented coordination among producers, processors, and exporters often leads to inefficiencies and missed opportunities. Establishing a National Soybean Development Strategy, underpinned by a robust governance structure, is essential to align stakeholder efforts and drive sectoral growth.

Tanzania’s Path to the Top: A Blueprint for Soybean Leadership in Africa
To become Africa’s top soybean producer and exporter, Tanzania must focus on five key areas:

Investing in Research and Development: Continued investment in research will be crucial to developing improved seed varieties and agronomic practices that can boost yields and adapt to changing climatic conditions.

Strengthening Value Addition and Processing: Establishing processing facilities in strategic regions will ensure that Tanzania maximizes revenue from its soybean production and reduces dependence on imported soybean meal.

Building Robust Market Systems: Developing structured markets and improving trade logistics will enable Tanzania to more effectively tap into regional and international markets.

Promoting Inclusive Growth: Empowering women and youth to participate in soybean farming and value addition will ensure that the sector’s growth benefits are shared equitably.

Implementing a National Soybean Development Strategy: A coordinated strategy that aligns with national and regional priorities will provide the necessary framework for sustained growth and sectoral development. Soybean has the potential to be a game-changer for Tanzania and Africa at large. With the suitable investments, policies, and stakeholder collaboration, Tanzania can become a leading producer and exporter of high-quality soybeans, contributing to food security, economic growth, and regional trade. The future of Africa’s soybean industry is bright, and Tanzania, led by SAGCOT’s strategic efforts, is poised to take its place at the top.