Why Agri-infrastructure key in attracting private sector investors

TANZANIA: THE government has reiterated its commitment to continue investing in agriinfrastructures with the aim of transforming agricultural sector into modern, commercial, highly productive so as to increase its contribution to the economic development.

The investment in agri-nfrastructures is seen as the panacea for attracting private sector investors into the agriculture value chain thus creating more jobs and increased farmers’ income.

The pattern of growth of the economy is influenced by the transformation of the agricultural sector through value addition of primary products, thereby influencing investments in industry and service sectors.

Tabling the 2024/25 budget estimates for the agriculture sector in the parliament recently, Agriculture Minister Hussein Bashe the Minister outlined the government’s commitment to bolstering agricultural production, enhancing irrigation infrastructure, expanding access to markets for agricultural goods, and empowering small-scale farmers nationwide.

“The government is not only committed to attract new investments but also encourage local and quality investments that will make agriculture sector more productive and enhance its contribution to economic growth,” he said.

This proactive stance by the government to improve the agriculture landscape is commendable, as it paves the way for private sector entities to capitalise on the new opportunities and contribute to the growth of the sector.

According to Mr Bashe, the participation of the private sector in agriculture value chain is central in formalising and empowering small-scale farmers to produce commercially.

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For example, through the collaborative efforts between the government and Serengeti Breweries Limited farmers have been reaping immense benefits from increased profitability and sustainability.

The Government Relations Manager at SBL Neema Temba said recently that by generating greater demand for their produce, this partnership promises to elevate farmers’ incomes, thereby enhancing household livelihoods in rural areas and expanding the tax base for the government.

“For many years, SBL has embarked on agribusiness initiatives to support farmers cultivating maize, white sorghum, and barley across multiple regions of the country This strategic endeavour has enabled the brewery to significantly enhance its utilization of locally sourced raw materials, increasing from 60 per cent in 2020 to an impressive 80 per cent by last year. This milestone equates to over 20,000 metric tonnes of the total raw materials utilised annually in the company’s beer production process,” she said.

The farmer support programme entails providing local farmers with nine different key components which are soil tests, chemicals, credit access, improved seed, mechanisation, crop insurance, fertiliser, training and purchase contracts which are renewable yearly based on farmers’ performance.

The company streamlines the farming process and support the agribusiness sector in improving farm practices by leveraging technological support for complex agricultural activities including weather forecasting, measuring soil salinity and soil fertility and monitoring crops. In return, SBL buys all the produce from the farmers, enabling them to repay borrowed capital to turn around their living standards.

Speaking on the initiative, SBL’s Corporate Director, John Wanyancha said, “SBL has a substantial demand for cereals required annually to craft its newly renovated beer brands. These cereals, namely barley, maize and white sorghum are meticulously sourced from various regions across the country, including Iringa, Morogoro, Mbeya, Singida, Dodoma, Manyara, Arusha and Moshi,” Mr Wanyancha further added, “Through strategic partnerships via contract farming initiatives, particularly focusing on barley and white sorghum, SBL aims to procure more than 8,500 tonnes of barley and over 6,500 tonnes of white sorghum for the financial year 2024.

This concerted effort underscores SBL’s commitment to sustainably sourcing high-quality ingredients while fostering mutually beneficial relationships with local farmers,” said John Wanyancha. SBL’s commitment to local sourcing plays a pivotal role in advancing the government’s vision to empower Tanzanian farmers, thereby fortifying the nation’s currency by reducing reliance on imports. By prioritising local procurement, SBL contributes to unlocking value across the agricultural value chain.

This approach fosters transparency and accountability while forging partnerships that benefit farmers and stakeholders at every stage of the value chain.

Ultimately, this collaborative effort not only supports the growth and sustainability of local agriculture but also contributes to the broader economic prosperity of Tanzania,” In its farmers’ support programme the company has successfully managed to attain its target through four key enablers which are farming, innovation, finance, and processing.

It is through the utilisation of innovation that the brewer has optimised the benefits of local sourcing through recipe and brand innovation like the use of different cereals as adjuncts thus bringing to life new products.

Therefore, the collaboration between the government and SBL has demonstrated huge potential in generating employment, raising productivity, transferring skills and technology, increasing competitiveness, enhancing exports and contributing to the long-term economic development of the country.