Samia graces TNBC meeting today as Tanzania basks in peace, tranquility

DAR ES SALAAM: The Tanzania National Business Council (TNBC) holds its 15th meeting today at the State House in Dar es Salaam under the leadership of TNBC National Chairperson President Samia Suluhu Hassan.

The council annually and routinely meets to have a clear picture of Tanzania’s economic performance at national level, in the region, continent and in the world.

This council has equal representation of the key players in Tanzania’s economy: the private sector and the public sector. The private sector boasts of being the engine that drives Tanzania’s economy while its counterpart, the public sector, is in the back seat.  Yes, in this council the voice of the private sector is heard and taken very seriously.

There is another factor to pay attention to: the way the TNBC is woven, leaves no room for mischief. Its decisions cannot be ignored; they have a lot of weight and for a very simple reason: The TNBC Chairman is the President of Tanzania, and invitees to TNBC meeting are heads of ministries (ministers) and heads of strategic public corporations under them. Ministers have to implement decisions of the council without fail and to the satisfaction of the prime minister.

Let us appreciate the fact that the council is meeting under the same global and regional conditions as they were when it met at the same venue on June 9, last year.  But the good thing is that the global crises, the inflation challenges, have not left Tanzania in dire straits.

Of course this is not to suggest that Tanzania is not in economic difficulties; it is — hence the importance of this meeting to consider ways of navigating through this storm.

Although Tanzania has not been left in dire straits, it has to address some determinant factors in this turbulent global economy.  First and foremost, it has to guarantee food security. A hungry nation is a nation in open-air dungeon, exposed to explosive situation and strife. And Tanzania can guarantee its food security.

Second is peace and tranquility. Tanzania has been lucky to remain a peaceful, united country for six decade. But peace exists when it is not disrupted. No farming can be done when there is no peace.  Under turmoil, nothing can be achieved.  Indeed, even those who fan turmoil are not spared!

For one to appreciate the importance and value of the agriculture sector, one may pay attention to the following paragraph in Minister Abdallah Ulega’s opening speech of the 15th Agricultural Economics Society of Tanzania conference on November 17, last year:

“Agriculture is important globally, as it provides food, employment, income as well as raw materials for agro-industries. Currently, agriculture accounts for about 35 per cent of Africa’s gross domestic product, and provides the livelihood of more than 50 per cent of the continent’s population.

In Tanzania, agriculture employs an estimated 65.5 per cent the labour force, and accounts for about 26 of the gross domestic product, 65 per cent of raw materials used by industries and about US$ 1.4 billion in export earnings…”

The statistics in the above paragraph are a proof of Tanzania being truly an agricultural country and can only industrialise using an agro-industrial approach.  If there is another approach, let us be told!

Our argument here is simply that modernisation of agriculture in Tanzania is necessary, with irrigation being given priority. In adopting irrigation farming, small holder farmers must be taken on board.

In 2010, retired President Jakaya Kikwete said the following: “Tanzania is, in essence, an agricultural country where agriculture means almost everything… Tanzania has immense opportunities for agricultural development. There are 44 million hectares of arable land, only 24 percent of which is being utilised.” The situation has not radically changed.

When small farmers are part of the irrigation process they will naturally be part of and will benefit from other aspects of modernisation of agriculture.

Agriculture will then employ in a dignified manner far more than the present estimated 65.5per cent of Tanzania’s labour force.

Then we have no option to submit that the private sector, “the engine of Tanzania’s economy” must be truly concerned with agriculture. Driving Tanzania’s economy, to a large extent means driving agriculture to modernisation.

Modernisation of agriculture, one would argue, requires private investment in transportation infrastructure and the government improving trade environment.

We can learn to value agriculture by looking at what others are doing. Take the example of the Netherlands. Netherlands is a very small country compared to Tanzania, yet it offers an illustrative example when it comes to cherishing agriculture.

In an interview a few years back, Ambassador Irene Kasyanju once told Tanzanians the following: “The Netherlands is one of the top ten world’s potato producing countries.

Actually, it is one of the seven European countries in that top-ten group. Despite the fact that there has been continuous decline in potato production in most European countries, the Netherlands continues to use almost 25 percent of its agricultural land for potato production and have broken the world’s yield record of more than 45 tons per hectare.

The Netherlands leads in sales of approved potato seed in the world and sells about 1,000,000 metric tons a year.” The Dutch have more than 500 approved varieties of Irish potatoes!

The secret to Netherlands’ success story is modernized potato farming. The question to ask ourselves is: Does Tanzania have a very high modernised rice or maize — let alone potato — farming?

Today’s meeting has brought together representatives of the private sector and the public sector. The gathering highlights the important role the public and private sectors play.

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When the TNBC meeting was held in June last year, TNBC Executive Committee submitted to that meeting a presentation entitled: “Opening up of the country to accelerate growth for resilient economy: The role of public and private sectors”.

In that submission, relying on Bank of Tanzania’s inputs, the committee reminded Tanzanians that the global economy is projected to decline from an estimated 3.4 percent in 2022 to 2.9 percent in 2023, which is below the historical average (2000-19) of 3.8 percent.  A global decline distresses Tanzania’s economy and the poor suffer most.

The committee said, and gave explanation for this: “The Tanzanian economy is not immune to global headwinds given the interdependence between global economies. We need to be aware of the [transmission mechanisms].”

We consider these to be important themes because Tanzania exports to other countries to get money for buying capital goods.  But when you look at the trade figures, you quickly learn that practically in every case Tanzania suffers a trade deficit.

In simple terms we import more than we export; meaning the foreign earnings we get by exporting what we produce is eaten away by imports.

But this is not unique to Tanzania.  Just as the committee concurs, this is true to many poor countries. “Most African countries have a trade deficit,” it says.

The committee calls for export growth strategies, suggesting more efforts to attract FDIs “and export-processing industries are critical in addressing trade imbalances.”  Agro-export-processing industries are the best option for Tanzania.

The committee also revealed and highlighted the fact that Tanzania trades mostly with African countries. Trade in the East African Community (EAC) bloc (26.50 percent) while in the Southern African Development Community (SADC) bloc (33.7%). Tanzania should focus on export of processed agricultural products.

As we argue forcefully to have agriculture transformed; as we argue to have huge emphasis laid on irrigation, we are also conscious of the fact that the Chairman of this meeting is very serious with irrigation in Tanzania.

During the launch of the 60-bn/- Luiche Valley Irrigation Scheme in Kigoma District this month, Agriculture Minister Hussein Bashe, said President Samia will not tolerate lame excuses and irrelevances when it comes to irrigation farming ( Rais hataki utani katika kilimo cha umwagiliaji).

We find solace in the fact that the scheme is projected to benefit 9,312 small farmers. Kigoma project can be replicated elsewhere.

Kigoma Region has a total of 147,000 hectares identified for irrigation.  So the region is in a good position to modernise its agriculture.

 About the writer: Keasi is a professional journalist, working as a media consultant and researcher based in Dar es Salaam. He can be reached at keasi1971@gmail.com or +255 713 466 661.