Producer organizations unleash productivity in Tanzania

01Aug 2018
By Financial Times Reporter
Financial Times
Producer organizations unleash productivity in Tanzania

Moses Msafiri, 35, is a farmer and father of two from the village of Chisano in Kilombero District. Moses recently built a new home for his family, and he even installed a solar power system.

But life wasn’t always so bright. In the past, Moses would earn only $175 (about 399140/-) per harvest, producing three bags of paddy, or unmilled rice. Now he earns $1,050 (about 2.4m/-) for the 18 bags his farm produces.

Tanzania is one of Africa’s fastest-growing economies, but the nation suffers from low productivity in the agriculture sector, which employs three-fourths of its labour force, despite growing only four percent per year over the last decade.

The reason for its low productivity is that farmers, like Moses, cannot access agricultural inputs in the remote regions where they live. Many farmers also don’t have access to agricultural extension services or loans, while others face high-interest rates on the loans they do receive.

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