Agriculture is the leading economic sector in Tanzania. It accounts for about 50% of GDP, 75% of merchandise exports and is source of food and provides employment opportunities to about 80 percent of Tanzanians. It has linkages with the non-farm sector through forward linkages to agro-processing, consumption and export; provides raw materials to industries and a market for manufactured goods. The sector is well focused with a strong position in several major export markets.
The country is covered by 88mn hectares of suitable agriculture land of which 60mn hectares are suitable for livestock production. Only 5.5% of the Tanzania's arable land is utilized, mainly by small-holder farmers. With irrigation, Tanzania can become a dominant grain exporter.
A future vision for Tanzania agriculture sector is to have a highly efficient and economically viable market-driven large scale farming sector, characterised by a wide range of farming enterprises of varying sizes having a positive influence to the rest of the economy.
The total number of agricultural and livestock projects approved by Tanzania Investment Centre between September 1990 and September 2000 were 123, leading to a total investment of TShs 264,775mn and generating 41,934 employment opportunities
2. Agricultural Industry
Tanzania’s agricultural based economy provides readily available raw materials for agribased industrial sector. The wide range of climates favours the production of a wide variety of products leading to plenty supply of raw agricultural produce, which could be processed domestically. Arable land is planted with cereals, coffee, tea, cashew, sisal, pyrethrum, cotton, tobacco, sugar etc. There is significant production of subtropical fruits, vegetables, meat, hides, skins, groundnuts and cut flowers. This presents opportunities in processing and other value adding activities from agricultural raw materials.
- Abundant fruits and vegetables produced domestically can be utilised for the production of fruit concentrates, juices and all forms of fruit and vegetable canning.
- Meat processing and packaging from both cattle and game meat and processing of dairy products. Potential export markets include the Gulf States, UAE and Asia.
- Manufacturing of spirits from molasses produced from sugar processing factories in Kilimanjaro and Morogoro.
- Production of processed dairy products such as sweetened condensed milk, milk powder, infant milk, butter, margarine, ice cream, yoghurt, cheese etc.
- Opportunities in establishment of cotton spinning and weaving utilising abundant supply of local grown cotton thus increasing production of manufactured textiles. The existence of abundant supply of cotton provides readily available opportunities for investment in textile industries. The textile industries can also take advantage of the US Africa Growth and Opportunity Act (AGOA) status, which have removed barriers for exporting Tanzania’s textile products to the US market
4. Petroleum and Gas
6. Economy Infrastructure