Question

Describe the role of agriculture in the Tanzanian's economy (at most three pages) highlighting its contribution to;

*National income

*Employment

*Industrial manpower

*Interdependence between agriculture and industry

*Capital information

*Purchasing power of the people

Answer 1

Dear Student,

Please find below answer to your question

Abstract

Agriculture plays a crucial role in the economy of developing countries, and provides the main source of food, income and employment to their rural populations. However, improvements in agriculture and land use are fundamental to achieving food security, poverty alleviation and overall sustainable development

1.National income

For starters the agriculture sector is by far the largest sector of our economy. At 30% of GDP (BOT June 2018), the economic size of the agricultural sector is three times the size of trade at 11%, mining at 4.8%, and manufacturing at 5.5%. By contrast, the financial sector is only 3.3% of GDP, or roughly one tenth of the size of the agriculture sector. The sector accounts 38% of the value of exports in Tanzania, this goes up to 92% of value when not accounting for gold exports

2.Employment

Creating effective farmer organizations: This is the important first step to bring some structure to the financial transactions of the millions of smallholder farmers in Tanzania. With 8.8 million active farmers, this is a major undertaking. The Agriculture Sector Development Plan, Phase II (ASDP II), notes that effective farmer organizations are critical to enabling commercialization and value addition in agriculture (component 3 of ASDP II). This task, and the major responsibility of achieving component 3 of ASDP II, has been given to the Tanzania Cooperative Development Commission. Thus far we have seen cooperatives revived across a variety of value chains, including the six priority value chains (coffee, tea, cashews, cotton, tobacco, and palm oil).

3.Industrial manpower

In agriculture business so many indurstries have done huge investment to process the agriculture raw materials and finally canalizes it for export to other countries, Tanzania's agricultural policies were based on government control of trade and production. ... Non-governmental organizations are likely to play an increasingly important role in targeting aid to farmers. Agricultural policy in Tanzania. Tanzania revised its national policy for agriculture and livestock

4.Interdependence between agriculture and industry

Tanzania Mercantile Exchange (TMX), was an important milestone to enable more structured trading of agriculture commodities. The development of warehouse receipt system (WRS) and the commodity exchange are noted in the ASDP II as among key activities in market enhancement in Tanzania. Development of other agricultural market systems that are non-commodity related such as nucleus and outgrower models are also needed. The financial sector can play a role in enabling structured markets for agriculture.

5.Capital information

Leveraging capital effectively to enhance productivity and savings from agriculture sector: It will also be necessary for the financial sector to be more creative on how to leverage and create and deploy capital for the agriculture sector. The relationship is beneficial in both ways; whereas the agriculture sector has savings to offer the financial sector, it also has financial needs in consumption smoothing, asset growth, production and productivity, etc. The agriculture sector thus needs long term, equity, investment opportunities, long term savings, insurance, and working capital

6.Purchasing power of the people

The income from agriculture business have increased purchasing power of people,These earnings from just the main export crops (cashew, cotton, sisal, coffee, cloves, tobacco, and tea) are paid to over one million farmers and households each year. When accounting for total employment in agriculture, of which NBS in its 2016/17 Annual Agriculture Sample Survey, notes that there are 8.8 million operators (farmers mostly) that are engaged in agriculture activities in Tanzania

If you like the answer, Kindly subscribe and up vote

Thank You !!