The Tanzanian agriculture market is projected to register a CAGR of 3.5% during the forecast period (2020-2025). Agriculture is the major backbone of the country's economy. Hence, structural measures are taken to boost agricultural production in the country with the support of public-private partnerships. In order to boost agricultural exports, many trade agreements are made with the neighboring African countries. Fruits hold a prominent share, owing to liberalization policies supporting its exports. Bananas, mangoes, oranges, pineapples, and watermelons are the major fruits produced in the country.
Key Market Trends
Favorable Government Policies Supporting the Market Growth
Agriculture is Tanzania's economic mainstay, contributing nearly to one-fourth of its GDP and more than 50% to total employment. The recent transformation in the agricultural sector is offering opportunities for acceleration of growth, job creation, and poverty reduction. The government is planning to incorporate private sector engagement, including the Southern Agricultural Growth Corridor of Tanzania initiative, a public-private partnership to increase the investments in the region. Further, the research activities conducted in collaboration with local institutions help to build the necessary capacity for long-term agricultural development. Thus, the private sector investment and policy initiatives are enabling the agriculture market growth during the forecast period.
Fruits Dominates the Market
Bananas, mangoes, oranges, pineapples, and watermelons are some of the major fruits grown in the country. The market for banana is developed in the country, owing to both export and local demand by the consumers. Tanzania and Uganda alone produce over 50% of all bananas grown on the entire African continent. The market is flourishing, owing to the increased consumer demand, and thus organizations are putting efforts to produce new varieties. For instance, the Tanzania Agricultural Research Institute developed 16 new drought- and disease-resistant banana hybrid varieties in the three predominantly banana-producing regions of Mbeya, Kilimanjaro, and Kagera. This, in turn, will promote the demand for bananas, thereby striving for the market growth for fruits in the country.
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