Tanzania’s Ministry of Agriculture Charts Ambitious Path for 2025/2026, Building on Recent Successes

Dodoma, Tanzania – The Tanzanian Ministry of Agriculture, under the leadership of Minister Hussein Mohamed Bashe, has presented an ambitious budget and plan for the 2025/2026 fiscal year, aiming to significantly boost agricultural productivity, enhance food security, and increase export revenues. Themed “Feed ourselves and feed others commercially”, the Ministry’s vision underscores a commitment to transforming the agricultural sector into a sustainable and competitive engine for economic growth and improved livelihoods for farmers.

I. Overall Ministry Vision and Strategic Goals (by 2030 unless stated):

• 5% Post-Harvest Loss: To reduce post-harvest losses from 30-40% to 5% by 2030.
• 50% Poverty Reduction: To decrease poverty by 50% by the year 2030.
• 100% Industrial Raw Material Availability: To ensure 100% availability of raw materials for industries.
• 3,000,000 New Jobs: To create 3,000,000 new jobs for youth and women by 2030.
• USD 1.2 Billion to USD 5 Billion Export Value Increase: To increase the value of agricultural exports from USD 1.2 billion to USD 5 billion by 2030.
• 10% Agricultural Growth: To achieve an agricultural growth rate of 10% by 2030.
• 10 Strategic Goals: The Ministry is implementing 10 strategic goals through Votes 43 (Ministry of Agriculture), 24 (Cooperative Development Commission), and 05 (National Irrigation Commission).

The budget speech, delivered on May 21, 2025, outlined the Ministry’s strategic objectives, which include increasing agricultural productivity and production, boosting horticultural output, reducing reliance on imported edible oils, wheat, and other grains, and slashing post-harvest losses from 30-40% to 5% by 2030. Furthermore, the Ministry aims to halve poverty by 2030, ensure 100% availability of raw materials for industries, create 3 million new jobs for youth and women by 2030, and elevate agricultural export earnings from USD 1.2 billion to USD 5 billion by 2030. An agricultural growth rate of 10% by 2030 is also a key target.

Reflecting on 2024/2025 Achievements:

Minister Bashe highlighted significant progress made during the 2024/2025 fiscal year. Food crop production increased from 20,402,014 tons in the 2022/2023 season to 22,803,316 tons in 2023/2024, marking an 11.8% rise and achieving 128% food self-sufficiency for the 2024/2025 period. Traditional cash crop production also grew, from 1,201,832.65 tons in 2023/2024 to 1,451,694.11 tons in 2024/2025. This included notable increases in cashew production, which reached 528,263.82 tons, and coffee, which hit 81,366 tons.

Key investments in the previous year included:

• Research and Seed Development: Shilingi 40.73 billion was allocated for research, technology discovery, and infrastructure, with Shilingi 16.03 billion disbursed by April 2025. Achievements include identifying 12 promising rust-resistant soybean lines and discovering bio-fungicides for cashew fusarium wilt.
• Seed and Seedling Distribution: Shilingi 44.42 billion was approved to improve the availability of quality seeds and seedlings, with Shilingi 18.2 billion released by April 2025. Seed availability reached 79,700.62 tons, nearly meeting the 80,000-ton target.
• Fertilizer and Pesticide Subsidies: The Ministry coordinated the availability of 1,213,729 tons of fertilizer, with 542,096 tons distributed under subsidy by April 2025.
• Irrigation Infrastructure: Shilingi 393.435 billion was allocated for 780 irrigation projects covering 543,366.46 hectares. Achievements include the completion of three new irrigation schemes and the rehabilitation of seven existing ones.
• Farmer Registration: The farmer registration system was enhanced, with 4,522,011 farmers registered by April 2025.
• Agricultural Mechanization: 500 large tractors and 800 power tillers were procured.

Priorities for 2025/2026:

The 2025/2026 budget will continue to focus on six key priority areas, supported by 30 strategies, building on ongoing projects and initiating new strategic interventions. The overarching goal remains achieving a 10% agricultural sector growth by 2030.

Key plans for the upcoming fiscal year include:

• Boosting Productivity and Production:
  • Seed Research: Continued research on 56 strategic crop seed varieties and soil health technologies.
  • Seed and Seedling Production & Subsidies: Targeting 90,000 tons of quality seed production locally (15,000 tons by ASA and 75,000 tons by the private sector) and aiming for a total availability of 105,000 tons. Subsidies will continue for strategic crops like sunflower (5,000 tons) and maize (52,000 tons). The Ministry will also produce and distribute 64,183,900 subsidized seedlings for various crops including cashews, coffee, and avocados.
  • Fertilizer and Pesticide Subsidies: TFRA will coordinate the availability of 1,500,000 tons of subsidized fertilizer. TFC will procure 200,000 tons for food crops, 133,000 tons for tobacco, and 500 tons for tea.
  • Irrigation Development: Continuation of 768 ongoing irrigation projects, including the construction of 60 new schemes and rehabilitation of 41 schemes. The Ministry will also advance projects to utilize water from Lake Victoria and Tanganyika for irrigation, potentially adding 3,000,000 hectares.
  • Agricultural Mechanization Service Centers: Establishment of 1,000 centers to provide subsidized mechanization services, along with the procurement of 10,000 tractors and 10,000 power tillers.
  • Agricultural Corridors (AGCOT): Continued strengthening of the four agricultural growth corridors (Central, Southern, Mtwara, and Northern) under the Agriculture Transformation Office (ATO).
• Increasing Decent Jobs and Youth/Women Participation (Building a Better Tomorrow – BBT):
  • Acquisition and development of 80,000 hectares for commercial farming.
  • Investment in the Mapogolo-Chunya farm (20,000 acres to start).
  • Continued development of BBT projects at the council level across 20 councils.
  • Drilling 500 irrigation wells to benefit 58,903 farmers.
  • Establishing special financing windows with an initial USD 35 million from AfDB for youth and women.
  • Creating employment for 500 youth and women in agricultural extension services (BBT-Ugani).
  • Launching BBT-Miche to empower youth and women in seedling production.
• Enhancing Food and Nutrition Security:
  • NFRA to complete storage infrastructure for 165,000 tons and begin construction for an additional 300,000 tons. This contributes to the goal of 3,000,000 tons of storage capacity by 2030.
  • NFRA to purchase 1,140,000 tons of grain.
  • Promotion of biofortified crops, with TARI producing 3,290,000 sweet potato cuttings.
• Strengthening Access to Markets, Finance, and Exports:
  • Continuation of construction for five strategic cross-border markets.
  • Construction and development of seven market sheds, with three new ones planned.
  • Finalizing the establishment of new export markets for nine crops in 14 countries.
• Strengthening Cooperative Development:
  • Developing a dashboard for the MUVU system (Cooperative Management System) and integrating it with other government systems.
  • Continuing the identification and valuation of cooperative assets.
  • Expanding the Cooperative Bank of Tanzania’s reach by opening branches in Kagera, Dar es Salaam, Mwanza, Mbeya, Katavi, and Ruvuma.
• Enhancing Use of ICT Systems in Agriculture (Agriculture Digitalization):
  • Continued development of the e-Kilimo system, including a geospatial information module.
  • Establishment of an e-library for agricultural records and a crop traceability module.

Policy and Legislative Adjustments:

The Minister noted several legislative and structural reforms undertaken, including amendments to the Sugar Industry Act, Cashew Industry Act, Cooperative Societies Act, Cotton Industry Act, and National Irrigation Act to improve regulation, funding, and efficiency within these sub-sectors. The Cereal and Other Produce Regulatory Authority (COPRA) has been established to oversee all crops without dedicated boards.

Call for Continued Investment and Support:

In his concluding remarks, Minister Bashe emphasized that the government’s actions are laying a strong foundation for long-term agricultural growth. He stressed that subsidies for inputs and infrastructure are not expenses but crucial development investments, particularly for smallholder farmers who form the backbone of Tanzania’s agriculture. He called for continued investment in the sector, asserting that “we cannot reduce poverty if we do not invest in our smallholder farmers.”

II. Performance Review of the Sixth Phase Government (up to April 2025):

• Tsh. 294 Billion to Tsh. 1.248 Trillion: The Ministry of Agriculture’s budget increased from Tsh. 294 billion in 2021/2022 to Tsh. 1.248 trillion in 2024/2025, a 324.49% increase.
• 2.6% to 4.2% Agricultural Sector Growth: The agricultural sector’s growth increased from 2.6% in 2021 to 4.2% in 2023.
• USD 1.2 Billion to USD 3.54 Billion Export Value: The value of agricultural exports increased from USD 1.2 billion in 2019/2020 to USD 3.54 billion in 2023/2024, a 195% increase.
• 17,148,290 to 22,803,316 Tons Food Crop Production: Food crop production increased from 17,148,290 tons in 2021/2022 to 22,803,316 tons in 2023/2024, a 33% increase, leading to 128% food self-sufficiency.
• 6,417,356 to 12,261,162 Tons Maize Production: Maize production increased from 6,417,356 tons in 2021/2022 to 12,261,162 tons in 2023/2024, a 91.06% increase, making Tanzania the second-largest producer in Africa.
• 1,768,369 to 3,046,285 Tons Rice Production: Rice production increased from 1,768,369 tons in 2020/2021 to 3,046,285 tons in 2023/2024, a 72.27% increase.
• 898,967 to 1,451,694.11 Tons Traditional Cash Crop Production: Production of traditional cash crops increased from 898,967 tons in 2020/2021 to 1,451,694.11 tons in 2023/2024, a 61.5% increase.
• 210,786 to 528,263.82 Tons Cashew Production: Cashew production increased from 210,786 tons in 2020/2021 to 528,263.82 tons in 2024/2025, a 150.61% increase.
• 58,508 to 160,000 Tons Tobacco Production: Tobacco production increased from 58,508 tons in 2020/2021 to 160,000 tons in 2024/2025, a 173.47% increase, making Tanzania the second-largest producer in Africa.
• 367,718 to 431,736.74 Tons Sugar Production: Sugar production increased from 367,718 tons (from 3.88 million tons of sugarcane) in 2020/2021 to 431,736.74 tons (from 4.71 million tons of sugarcane) in 2024/2025, a 17.41% increase in sugar.
• 36,170 to 61,215.55 Tons Sisal Production: Sisal production increased from 36,170 tons in 2020/2021 to 61,215.55 tons in 2024/2025, a 69.24% increase.
• 59,318 to 81,366 Tons Coffee Production: Coffee production increased from 59,318 tons to 81,366 tons in the 2024/2025 season, a 37.17% increase, making Tanzania the fourth-largest producer in Africa.
• 30,167.11 to 63,526.54 Tons Domestic Seed Production: Domestic production of quality seeds increased from 30,167.11 tons in 2020/2021 to 63,526.54 tons in 2024/2025, a 110.58% increase.
• 44,581.08 to 79,700.62 Tons Seed Availability: Availability of quality seeds increased from 44,581.08 tons in 2020/2021 to 79,700.62 tons in 2023/2024, a 78.78% increase.
• 7,304,723 to 7,513,026.83 Tons Horticultural Crop Production: Horticultural crop production increased from 7,304,723 tons in 2020/2021 to 7,513,026.83 tons in 2023/2024, a 2.85% increase.
• 149,340 to 195,162 Tons Avocado Production: Avocado production increased from 149,340 tons in 2022/2023 to 195,162 tons in 2024/2025.
• Tsh. 117.5 Billion to Tsh. 252.3 Billion Avocado Export Value: Avocado exports increased from 26,826 tons valued at Tsh. 117.5 billion in 2022/2023 to 35,627.02 tons valued at Tsh. 252.3 billion in 2023/2024.
• 1,713,178 to 2,143,098.70 Tons Oilseed Crop Production: Oilseed crop production increased from 1,713,178 tons in 2020/2021 to 2,143,098.70 tons in 2023/2024, a 25.1% increase.
• 478,900 to 1,217,025.51 Tons Sunflower Production: Sunflower production increased from 478,900 tons in 2020/2021 to 1,217,025.51 tons in 2023/2024, a 154.13% increase.
• 32,239 to 158,628 Tons Domestic Fertilizer Production: Domestic fertilizer production increased from 32,239 tons in 2020/2021 to 158,628 tons in 2024/2025, a 392% increase. This was partly due to the new ITRACOM factory (1,000,000 tons/year capacity) and Minjingu factory expansion (from 30,000 to 100,000 tons/year).
• 1,454,974.721 Tons Subsidized Fertilizer: Over three years, the Ministry facilitated a fertilizer subsidy of 1,454,974.721 tons, valued at Tsh. 708,627,762,436.
• 19 kg to 24 kg Per Hectare Fertilizer Use: Fertilizer use per hectare increased from 19 kg in 2021/2022 to 24 kg in 2024/2025, a 26% increase (48% of the 50 kg/ha CAADP target).
• 251,000 to 776,000 Tons NFRA Storage Capacity: National Food Reserve Agency (NFRA) storage capacity increased from 251,000 tons in 2020/2021 to 776,000 tons in 2024/2025, a 209.16% increase.
• 1,084,481 Jobs Created: The Ministry generated 1,084,481 permanent and temporary jobs through various agricultural development programs and projects.
• Tsh. 556.7 Billion Cashew Input Subsidies: Facilitated access to and distribution of cashew inputs (109,083.695 tons of sulfur powder, 8,823,687.5 liters of liquid pesticides, and 6,337 sprayers) worth Tsh. 556,719,057,804.95 through subsidies.
• Tsh. 607.3 Billion Tobacco Input Subsidies: Facilitated access to and distribution of tobacco inputs (fertilizers, pesticides, packaging) worth Tsh. 607,292,419,460.43.
• Tsh. 325.4 Billion Cotton Input Subsidies: Facilitated access to and distribution of cotton inputs (fertilizers, seeds, pesticides) worth Tsh. 325,361,502,000.
• 13 to 780 Irrigation Projects: The number of implemented irrigation projects increased from 13 in 2020/2021 to 780 in 2024/2025, covering 543,366.46 hectares at an estimated cost of Tsh. 1,345,813,904,141.73.
• Tsh. 58 Billion Cooperative Bank Capital: Establishment of the Tanzania Cooperative Bank with an initial capital of Tsh. 58 billion.

III. Budget and Plans for 2024/2025 (Implementation Review):

• Tsh. 7,000,254,000 Revenue Target (Vote 43): The Ministry estimated collecting this amount in 2024/2025.
• Tsh. 6,022,070,746.93 Revenue Collected (Vote 43 by April 2025): This represents 86.03% of the target for Vote 43.
• Tsh. 3,600,000,000 Revenue Target (Vote 05): The Ministry estimated collecting this amount for irrigation in 2024/2025.
• Tsh. 2,401,552,515.48 Revenue Collected (Vote 05 by April 2025): This represents 66.71% of the target for Vote 05.
• Tsh. 1,248,961,680,000 Total Budget (2024/2025): Total allocation for the Ministry of Agriculture across Votes 43, 05, and 24.
  • Tsh. 1,033,046,318,000 for Development Projects.
  • Tsh. 215,915,362,000 for Recurrent Expenditure.
• Tsh. 664,362,952,241.59 Funds Released (by April 2025): This is 53.19% of the approved budget for 2024/2025.
• 22,803,316 Tons Food Crop Production (2023/2024 season): An 11.8% increase from the previous season, ensuring 128% food self-sufficiency for 2024/2025.
• 1,451,694.11 Tons Traditional Cash Crop Production (2024/2025): This is 71.51% of the 2,030,000-ton target, with production ongoing.
• 528,263.82 Tons Cashew Production (2024/2025): Achieved 88.78% of the 595,000-ton target.
• 431,736.74 Tons Sugar Production (2024/2025): Achieved 83.00% of the 520,000-ton target.
• 7,518,560.84 Tons Horticultural Production (2023/2024): This was 83.5% of the 9,000,000-ton target.
• 2,181,603.65 Tons Oilseed Production (2023/2024): This was 99.2% of the 2,200,000-ton target.
• Tsh. 40.73 Billion for Seed Research (2024/2025): Allocation for research, technology discovery, initial seed production, and research infrastructure.
• 79,700.62 Tons Quality Seed Availability (by April 2025): 99.6% of the 80,000-ton target. (63,526.54 tons produced locally, 16,174.08 tons imported).
• 1,213,729 Tons Fertilizer Availability (by April 2025): 80.9% of the 1,500,000-ton target. 542,096 tons distributed under subsidy, with a subsidy value of Tsh. 182,125,280,724.
• 4,522,011 Farmers Registered (by April 2025): Number of farmers registered in the subsidy system.
• 6,444 Motorcycles Distributed to Extension Officers (since 2022/2023): For improving extension services.
• USD 3.54 Billion Agricultural Export Value (2023/2024): Increase from USD 1.2 billion in 2019/2020.
• Tsh. 5.18 Trillion Loans to Agriculture Sector (2024/2025): Increase from Tsh. 4.29 trillion in 2023/2024.

IV. Budget and Plans for 2025/2026 (Projections and Allocations):

• 5% Crop Sector Growth Target: Expected growth for the crop sub-sector in 2025/2026.
• 2,275,000 Tons Strategic Crop Production Target: Aim for 2025/2026.
• 130% Food Self-Sufficiency Target: For 2025/2026.
• USD 4 Billion Agricultural Export Value Target: For 2025/2026.
• 1,200,000 Hectares Irrigation Target: Area to be under irrigation.
• 1,500 Tons Strategic Crop Seed Research: TARI to conduct research and produce this amount of strategic seeds (mother, pre-basic, basic, certified).
• 90,000 Tons Domestic Quality Seed Production Target: For 2025/2026, with ASA producing 15,000 tons and the private sector 75,000 tons.
• 105,000 Tons Total Seed Availability Target: For 2025/2026.
• 52,000 Tons Maize Seed Subsidy: Planned for 2025/2026.
• 5,000 Tons Sunflower Seed Subsidy: Planned for 2025/2026.
• 64,183,900 Seedlings to be Produced/Distributed: For various crops under the subsidy program in 2025/2026.
• 1,500,000 Tons Fertilizer Availability Target: TFRA to coordinate this amount for subsidized distribution in 2025/2026.
• 10,000 Farmers to Receive Land Titles/Smart Cards: Through TFRA for accessing inputs.
• 1,000 Agricultural Mechanization Service Centers: To be established to provide subsidized services.
• 10,000 Tractors and 10,000 Power Tillers: To be procured for the mechanization service centers.
• 700,000 Tons Sugar Production Target (from 7,000,000 tons of sugarcane): For 2025/2026.
• 3,000,000 Decent Jobs Target by 2030: Youth and women participation in agriculture.
• 500 Irrigation Wells: To be drilled by the National Irrigation Commission, irrigating 30,393.39 hectares and benefiting 58,903 farmers.
• Tsh. 12,265,370,000 Expected Revenue Collection (2025/2026): Across Vote 43 and Vote 05.
• Tsh. 1,242,975,075,000 Total Budget Request (2025/2026): For Votes 43, 05, and 24.
  • Tsh. 838,259,822,000 for Vote 43 (Ministry):
    • Tsh. 702,275,933,000 for development projects (Tsh. 424,328,013,000 local, Tsh. 277,947,920,000 foreign).
    • Tsh. 135,983,889,000 for recurrent expenditure (Tsh. 81,447,048,000 salaries, Tsh. 54,536,841,000 other charges).
  • Tsh. 382,138,408,000 for Vote 05 (National Irrigation Commission):
    • Tsh. 308,721,961,000 for development (Tsh. 259,617,801,000 local, Tsh. 49,104,160,000 foreign).
    • Tsh. 73,416,447,000 for recurrent (Tsh. 8,267,617,000 salaries, Tsh. 65,148,830,000 other charges).
  • Tsh. 22,576,845,000 for Vote 24 (Cooperative Development Commission):
    • Tsh. 697,176,000 for development (local funds).
    • Tsh. 21,879,669,000 for recurrent (Tsh. 12,846,074,000 salaries, Tsh. 9,033,595,000 other charges).