The major economic activity in Tanzania is agriculture. Tanzania has been blessed with 94.5 million hectares of land out of which 44 million hectares are classified as suitable for agriculture (ASDS, 2001). However, only part of the 44 million hectares is suitable for agricultural production for a variety of reasons, including soil leaching, recurring drought, and pest infestations. The agriculture sector accounts for 26.7% of Tanzania’s GDP and provides employment for the majority of the population. According to the International Labor Statistics (ILO), the agriculture sector in Tanzania employs nearly 80% of the workforce out of whom 90 percent are women yet the average monthly incomes amongst employed men are 1.67 times higher than women. Most of the workers who reside in the rural areas are not covered by formal social security schemes, health care, life insurance etc. At present, there are a number of programs, policies and strategies which have been put in place to assist in the growth and development of the agriculture sector in Tanzania and to name a few: Vision 2025; National Strategy for Growth and Poverty Reduction (NSGPR); National Agriculture & Livestock Policy; Agriculture Marketing Policy of 1997; Kilimo Kwanza; SME Development Policy etc. Despite these policies and strategies, the agriculture sector in Tanzania faces many challenges exporting these products. Among the crops grown in the country, include the high value non-traditional horticulure crops such as baby corn, french beans, flowers, baby carrots, fruits etc. Most of the horticulture crops grown in Tanzania consist of fresh vegetables, fruits, flowers and spices. Tanzania is well known to be among one of the 20 biggest producers of horticulture crops but statistics indicate that it is not one of the 20 biggest exporters in the world.

1. HORTICULTURE
FOCUS: A CRITICAL IBS FOR HORTICULTURE IN
TANZANIA
By Isaac Luseko

2. WHAT IS HORTICULTURE AND WHY IS IT
IMPORTANT?
• HORTICULTURE IS A BRANCH OF AGRICULTURE
• DEALS WITH THE ART, SCIENCE, TECHNOLOGY AND BUSINESS OF PLANT
CULTIVATION
• TREMENDOUS OPPORTUNITIES IN THE HORTICULTURE BUSINESS BUT THE
WINDOW OF OPPORTUNITY IS CLOSING
• FOREIGN INCOME HAS INCREASED FROM USD 1.4 MILLION IN 2002 TO USD
140 MILLION IN 2008 AND IS NOW AROUND USD 380 MILLION PER ANNUM
• WORLD TRADE IN HORTICULTURE NOW ACCOUNTS FOR MORE THAN 20%
OF TOTAL AGRICULTURAL EXPORTS

3. THE HORTICULTURE CROPS BEING GROWN IN
TANZANIA ARE:
• ASIAN VEGETABLES
• BABY CORN
• BABY MARROW
• BEETROOTS
• BEANS
• CABBAGE
• EGGPLANTS
• SPINACH
• TOMATOES ETC.

4. HORTICULTURE CROPS ARE GROWN IN:
• MOSTLY IN HIGHLAND REGIONS SUCH AS:
• MBEYA
• IRINGA
• NJOMBE
• ARUSHA
• KILIMANJARO
• TANGA
• MOROGORO

5. HORTICULTURE ADVANTAGES IN TANZANIA
• FAVORABLE CLIMATE CONDITIONS
• VAST PIECES OF ARABLE LAND SUITABLE FOR HORTICULTURE
PRODUCTION
• FERTILE SOIL
• LOCATION OF DIFFERENT ALTITUDES WHICH CAN SUIT THE NEEDS
OF DIFFERENT VARIETIES OF FLOWERS, VEGETABLES, FRUITS AND
SPICES
• PROXIMITY TO MAIN ROADS, INTERNATIONAL AIRPORTS (KIA, JNIA,
JKIA), AND SEAPORTS

6. IN COMPARISON (ETHIOPIA)
• ETHIOPIA – THEIR COMPETITIVE ADVANTAGE
IS IN GROWING FLOWERS DUE TO
FAVORABLE WEATHER CONDITIONS AND
EXPORT TO THE EUROPEAN UNION, MIDDLE
EAST AND REGIONAL MARKETS IN EAST
AFRICA

7. IN COMPARISON (RWANDA)
• RWANDA – COMPETITIVE ADVANTAGE IN
GROWING FRUITS AND VEGETABLES DUE
TO ITS CLIMATE AND TOPOGRAPHY. THEY
SPECIALIZE IN BEANS, PEAS, MUSHROOMS,
CITRUS AND STRAWBERRIES BUT NOW ARE
LOOKING INTO FLOWERS.

8. IN COMPARISON (KENYA)
• COMPETITIVE ADVANTAGE IN GROWING FLOWERS AS WELL AS
FRESH FRUITS AND VEGETABLES.
• KENYA MAINLY EXPORTS CUT FLOWERS. HORTICULTURE
CONTRIBUTES 33% TO THEIR AGRICULTURAL GDP.
• DUE TO THEIR SUPERIOR AIR TRANSPORT FACILITIES, KENYA’S
VISION IS TO STRATEGICALLY BECOME TO THE TRADE HUB FOR
EAST AND CENTRAL AFRICA.
• THE HORTICULTURAL INDUSTRY IN 2009 EARNED KENYA, KES
71.6 BILLION (USD 742 MILLION) AND AN ESTIMATED KES 153
BILLION (USD 1.58 BILLION) FROM THE DOMESTIC MARKET
(NATIONAL HORTICULTURE POLICY, 2010).

9. TRADE STATISTICS FOR TANZANIA (UNCOMTRADE
2012)

10. TOP 10 EXPORT PARTNERS (UNCOMTRADE 2012)

11. TOP 10 IMPORT PARTNERS (UNCOMTRADE 2012)

12. TOP 10 EXPORT GOODS (UNCOMTRADE 2012)

13. EUROPEAN UNION  TRADE  TANZANIA

14. Top 20 Producers of Vegetables
2000 2007
Rank Country Rank Country
1 China 1 China
2 India 2 India
3 Vietnam 3 Vietnam
4 Philippines 4 Nigeria
5 Nigeria 5 Philippines
6 Korea 6 Korea
7 France 7 Myanmar
8 Japan 8 Japan
9 Myanmar 9 Russia
10 Korea 10 Brazil
11 Brazil 11 Nepal
12 Italy 12 Korea
13 Iran 13 Iran
14 Nepal 14 Italy
15 Germany 15 Bangladesh
16 Russia 16 Pakistan
17 Pakistan 17 Thailand
18 USA 18 Tanzania
19 Thailand 19 USA
20 Tanzania 20 Cuba

15. Top 20 Exporters of Vegetables
2000 2007
Rank Country Rank Country
1 USA 1 Mexico
2 Italy 2 Netherlands
3 China 3 Italy
4 France 4 USA
5 Netherlands 5 France
6 Kenya 6 Kenya
7 Spain 7 Spain
8 Israel 8 China
9 Thailand 9 Israel
10 Belgium 10 Thailand
11 India 11 Belgium
12 Syria 12 Germany
13 Mexico 13 India
14 New Zealand 14 Bangladesh
15 Bangladesh 15 Panama
16 Costa Rica 16 Jordan
17 Malaysia 17 Saudi Arabia
18 Philippines 18 Uzbekistan
19 Australia 19 Malaysia
20 Germany 20 Costa Rica

16. SWOT ANALYSIS
• STRENGTHS:
• FAVORABLE CLIMATE CONDITIONS -> DIFFERENT
ALTITUDES
• VAST ARABLE LAND
• MULTIPLE LOCATION OF DIFFERENT
ALTITUDES/TEMPERATURES
• FERTILE SOIL
• PROXIMITY TO INTERNATIONAL AIRPORTS (JNIA, JKIA,
ZNZ, AND KIA)

17. SWOT ANALYSIS
• WEAKNESSES:
• UNDESIRABLE AND INEFFICIENT BUSINESS
ENVIRONMENT (CORRUPTION)
• WEAK SUPPLY AND VALUE CHAINS RANGING FROM ON
FARM PRODUCTIVITY TO DELAYS AT THE BORDER
CROSSINGS
• INSUFFICIENT AWARENESS AMONG TANZANIANS
ABOUT THE ECONOMIC AND SOCIAL POTENTIAL OF
HORTICULTURE
• POOR FARMING EQUIPMENT AND USE OF TRADITIONAL
IRRIGATION METHODS

18. WEAKNESSES CONTD.
• HIGH TAXES AND OTHER FEES
• INADEQUATE AVAILABILITY OF INPUTS
• HIGH COSTS OF TRANSPORTATION DUE TO POOR
INFRASTRUCTURE
• PROBLEM OF LOCAL GOVERNMENT AUTHORITIES NOT
ABIDING BY THE NATIONAL LAWS AND REGULATIONS
GOVERNING PRODUCTION AND TRADE.
• LACK OF DEDICATED CARGO FLIGHTS

19. OPPORTUNITIES
• INCREASING INVESTMENT FLOWS INTO AGRICULTURAL
ACTIVITIES IN EAST AFRICA
• EXPANSION OF THE JULIUS NYERERE INTERNATIONAL
AIRPORT
• EXPANSION OF THE DAR ES SALAAM PORT AND
BAGAMOYO PORT
• PROXIMITY TO RAPIDLY GROWING EXPORT MARKETS
• INCREASING AWARENESS OF THE HEALTH AND
NUTRITIONAL BENEFITS OF THE HORTICULTURE
PRODUCTS

20. THREATS
• CONTINUOUSLY RISING INTERNATIONAL STANDARDS
• CLIMATE CHANGE (GLOBAL WARMING)
• GROWING REGIONAL PLAYERS (RWANDA, KENYA, ETHIOPIA)
• EXPENSIVE FLIGHT COSTS TO NEIGHBORING COUNTRIES
• DELAYS AT THE BORDER POINTS
• LANDING FEES AND FUEL TAXES ARE MUCH HIGHER THAN IN
KENYA

21. PROPOSED STRATEGY/RECOMMENDATION
• TO FIND MARKET NICHES WITH OUR EXISTING TRADE
PARTNERS (IMPORT AND EXPORT)
• CAPITALIZE ON THE CUSTOMS UNION AND FREE TRADE
AGREEMENTS REGIONALLY AND INTERNATIONALLY WITH
EAC AND SADC
• PROPOSE FREE TRADE AGREEMENTS WITH ALL MAJOR
TRADING PARTNERS (IMPROVE INVESTOR BUSINESS
RELATIONS)

22. PROPOSED CONTD.
• NEGOTIATE FOR MORE SUBSIDIZED PACKAGES FOR FARMERS SUCH
AS THE AMBER BOX WHICH IS DIRECTLY LINKED WITH PRODUCTION
• TARGET MORE A CERTAIN GROUP OF PEOPLE (AFRICAN) IN THE
INTERNATIONAL MARKETS
• TARGET SMALL RETAIL SHOPS IN ASIA OR EUROPE AND NOT CHAIN
SUPERMARKETS TO AVOID GOOD AGRICULTURAL PRACTICES (GAP)
STANDARDS
• CONSTRUCT INDUSTRIES WHICH WOULD ADD VALUE TO THE
PRODUCTS (PACKAGING) BEING EXPORTED RATHER THAN CASHING
IN ON RAW MATERIALS.

23. THANK YOU
By Isaac Luseko