Japan signs road and agriculture grant for Tanzania

The governments of Japan and Tanzania signed an Exchange of Notes that will bring in 1.55 billion yen (US$17 million) into the East African country. The grant will be used to fund projects to expand and improve key roads as well as to support food security efforts.

Tanzanian Finance Minister William Mgimwa thanked Japan for having been for decades a steadfast partner in Tanzania’s Social Economic Development. He said that 20 billion Tanzanian shillings (US$12.5 million) will be used for expanding Kiwa Road and Harbour Road intersection while 6.92 billion Tanzanian shillings (US$4.3 million) will be spent on the expansion of the TAZARA intersection road. Japanese Ambassador to Tanzania Masaki Okada said that the grant will improve traveling speeds from 0.7 kph to 40 kph during peak hours when people commute to and from work or school. Okada also said that there will be construction of flyovers and construction roads to cut travel time between Dar es Salaam city and the Julius Nyerere International Airport 11 kilometers away.

Also included in the grant is 6.8 billion Tanzanian shillings (US$4.2 million) for agriculture. Called “2KR”, the food security project to be implemented by Tanzania’s Ministry of Agriculture, Food Security and Cooperatives will target underprivileged farmers and will attempt to improve the country’s agricultural conditions. Okada said that while Tanzania has been enjoying a relatively high level of food self-sufficiency in recent years, it has not yet fully attained food security due to irregular rainfalls and insufficient transportation infrastructure.

[ via All Africa ]

Rwanda: Agriculture Minister Wins Global Award

The Agriculture Minister, Dr Agnes Kalibata, was yesterday announced winner of the 2012 Yara Prize Award for her efforts towards ensuring food security in Rwanda.

In the announcement that was made from the Norwegian capital Oslo, Kalibata was awarded alongside Dr. Eleni Gabre-Madhin, the outgoing CEO of the Ethiopian Commodity Exchange (ECX).

According to a statement from Yara International, both leaders demonstrated how transformative change can be achieved in a complex and challenging environment.

"They have applied innovative approaches, collaborating with partners in new ways. Their achievements are fit to inspire other countries to transform the productivity and sustainability of their agricultural sectors," it reads.

The president and chairman of the Yara Prize committee, Jørgen Ole Haslestad, commended the winners for the substantial work they demonstrated in fighting food insecurity, not only in their countries but also on the continent.

"Yara creates impact by addressing global challenges. By awarding the Prize, we salute the champions of sustainable agricultural development. I wish to extend my personal congratulations to the laureates," Haslestad said.

"This is the exact kind of development needed to promote in the Grow Africa Initiative, co-chaired by Yara alongside NEPAD and the African Union".

The Yara Prize is based on nominations of candidates who are carefully evaluated by the Yara Prize Committee.

The prize consists of $60,000, which will be split between the laureates, a crystal trophy and a diploma.

"Dr. Agnes Kalibata is being awarded the prize for her great leadership in the transformation of food security and agricultural development in Rwanda in a relatively short period of time", continues the statement.

Rwanda has moved from having a food deficit to being a country that is largely food self-sufficient. Over 1 million Rwandans moved out of poverty between 2005 and 2011.

The committee agreed that Kalibata had been able to align national agricultural policies with the NEPAD/CAADP frameworks citing the commitment to increase government budget share for agriculture to 10 percent, and Rwanda was the first country to adopt a Comprehensive Africa Agriculture Development Programme (CAADP) compact.

In an interview with The New Times, the minister welcomed the prize attributing it to the good government policies that were initiated to ensure and promote food security in the country.

"Besides setting the stage in Rwanda and getting Rwandans to be food secure, we have also led in continental efforts. Our participation in CAADP and the lead we provided as a country at the continental level, and we are also leading in GrowAfrica initiative that is looking to link farmers to agro industries," she said

She added that the country has been among the few that make efforts to commit 10 per cent of the national budget to the agriculture sector as per Maputo Declaration.

Kalibata said that government policies, like embarking on crop intensification programmes to increase productivity, terracing programmes, One-cow-per-family as well creating market links to farmers, played a significant role in fighting food insecurity.

The laureates will receive their awards on September 27 in Arusha, Tanzania.

Original Article Here

Youths not ready for business, agriculture

Does our education system at primary and secondary school levels prepare the young citizens to be farmers or business people? The answer is a definite no.

Yet, facts on the ground indicate that more Tanzanians are in farming and non-formal businesses than in any other sector.

Naturally, one would expect agriculture and business education to be a must subjects at least from the upper primary level.

Instead of our primary and secondary education system  preparing the young citizens to enter modern farming and businesses, we dream of white-collar jobs.

Those who fail and fall along the way are the wayward, and the lucky to go to vocational training centres. Those who are completely unlucky will not even finish primary school education- and resign mostly to peasant farming or petty trade.

Our education system, inherited from the-colonial and post independence years for churning out civil servants has failed to take the realities of today’s Tanzania.

Almost every one of us, after school- we expect to be employed and not to go into business. The reality is the government and the public sector can’t absorb all the young graduates as it was in the first ten years of independence.

The private sector is constrained as well, and due to unhealthy business environment, it is not growing at the speed that can absorb all school leavers.

No wonder some leaders have been saying unemployment is a time bomb. Millions of youth, restless and with nothing to do for a source of income, are dangerous lot.

The more the unemployment number goes up, the more the danger of social unrest.
The elite, the political class and even the development partners seem to be helpless in the wake of the rising number of the unemployed.

Whatever is being done at the top and bottom levels is not enough to tame the growing menace. Even if the economy was to grow at 15 per cent per year, it can’t be enough to absorb all graduates in formal employment, leave alone those who finish their education at primary and secondary levels.

The number of youths entering the job market is big. I expect the upcoming census to get staggering figures on this.
The problem with the economic growth that we have been experiencing in the last 15 years or so, is that on the other hand, poverty levels among the sections of the people has been on the increase. That is the paradox of Tanzania.

Usually any economic growth that does not directly affect or improve lives of the majority populace creates huge gaps between the rich and the poor.

We don’t need this in Tanzania. Fair distribution of wealth that results from the available natural resources will make our country a better nation.

Policy makers know what the common people do for a living. The government is aware that the world today is private sector driven.

So it must take steps to prepare young citizens to enter the private sector world as business people and modern farmers.

The set up must begin in the primary and secondary school syllabi. We are living in a global village and the reality of East African integration is there for all to see.

Children in some neighbouring countries are being taught agriculture and business education.  If we don’t act, history will judge us harshly and despite all our natural resources, we will remain poor people.           
Saumu Jumanne is an Assistant Lecturer, Dar es Salaam University College of Education (DUCE).

Original Article Here

Tanzania: PASS Determined to Revolutionize Agriculture

A recent victory of the Private Agricultural Sector Support Trust (PASS) in this year's agriculture festival famously known as Nanenane speaks volume.

In Dodoma, PASS clinched number 2 in the NGO category while it emerged number 1 in Morogoro in the Financial Services category. It took number 2 in Mbeya zone in the Agricultural Service provider category.

Like many other victories we know, PASS worked hard to earn it. In other words, the trophies did not come from heaven. It was a result of the vigour and determination of the NGO to deliver for the benefit of agriculture sector and the country at large. Undoubtedly, this should have made the sector's stakeholders proud.

"The victory will serve as a catalyst to serve more farmers in the country," PASS Managing Director, Mr Iddy Lujina says adding that they have vowed to reach as many people as possible in the country as a way to boost agriculture sector and fight poverty. "We are striving to reach more farmers at the end of this year by opening up more branches in various regions in the country," he says.

He explains that they are working hard in line with the government's agriculture first or Kilimo Kwanza initiative and the Southern Agriculture Growth Corridor of Tanzania (SAGCOT) because they believe that agriculture has the ability to spearhead the nation's development.

On his part, one of the PASS beneficiaries, Mr Papian Emmanuel, thanked the NGO for what they do to serve agriculture sector. "I call upon other institutions in the country to follow PASS footprints by serving farmers in the country and help them out of poverty," Mr Papian said during the exhibition.

As a way to strengthen the sector in the country, the MD challenges banking institutions to venture in supporting agriculture.

"Banks should come out and work with organizations such as ours," he says. He notes that young people in Tanzania should not shy away from agriculture sector; instead they should form groups, work hard and seek financial assistance from banks through organizations like PASS.

Giving an example, he says PASS has recorded tremendous achievements in Kilombero sugar plantations where it has helped youths who have formed groups and access loans from banks with the assistance from the NGO. PASS collaborates with seven banks but plans are to partner with more banks.

"I appeal to other banks to come out and work with PASS to stimulate investments and growth of private commercial farming and agribusiness," he says. Talking on some of the products on which PASS can collaborate with banks, Mr Lujina says under the lender's Option Guarantee, the lender will decide whether or not to guarantee loans to their borrowers based on predetermined guarantee criteria and a guarantee product policy contractually agreed with PASS.

According to the MD, the linkage banking guarantee product will guarantee loans from highly liquid institutions including large banks and pension funds to prequalified rural financial institutions to be used only for loanable funds supporting those institutions' agribusiness portfolios.

"Fixed equity hire purchase product is a meaningful departure from PASS's traditional way of doing business but maintains our vision and mission. It is a method for us to take an equity stake in a medium to large scale agribusiness by providing that business access to critical fixed assets without obligating that business to a commercial lender," he says.

He challenges farmers to strive adding value to their agricultural produce and take advantage of thriving ready markets in neighbouring countries. Mr Lujina says that Tanzania is blessed with huge arable land and if farmers will use it properly and adds value to their produce before selling them they could contribute to fighting poverty and development of the country at large.

"Neighbouring countries depend on us for food," he says, adding that this is an opportunity to tape and that people should not sell raw products but processed products for more profits. He explains that PASS is ready to help farmers acquire necessary equipments to process their agricultural produce so as to develop themselves and the country's crucial sector.

"We appeal to more people to visit our offices and know how they can benefit," he says. The Managing Director explains that PASS's intervention has in recent years helped in increasing bank's confidence to farmers and helped the latter access loans ranging from 10 million up to 200 million depending on the project targeted.

So far, PASS offers business development services; strengthen farmers' organizations and financial services. According to Mr Lujina, PASS's clients comprise groups of small farmers, individual farmers, agro-processors and others in the sector whose number has reached around 45,000 so far. "We have facilitated loans of approximately Tshs 95 billion," he says.

PASS supports agri-business enterprises and farmer groups; SACCOS cooperatives, farmers associations and women groups involved in agricultural activities. In 2011 alone over 11,000 farmers all over Tanzania got loans worth Tshs 21.5 billion for inputs, irrigation, tractors, agro- processing and trucks.

"Impressive productivity gains have been achieved in supported projects in various sub-sectors," he says. He mentions the sectors as coffee, tea, paddy, maize, sunflower, sugar cane, and livestock. In 2011 PASS supported loans in crop and livestock production (40%), farm mechanization (29%), agro processing and trading (27%) and rural trucks (3%).

The NGO has set special concessionary loan terms for women entrepreneurs to enable them qualify for more bank loans.

According to Mr Lujina, PASS has also achieved an excellent loan repayment rate of over 95 per cent, and the collaborating banks are progressively getting more encouraged in financing agricultural investments. Plans are underway to open new branches in Kilimanjaro and Mtwara regions this year. Currently, the NGO has offices in Mbeya, Mwanza, Morogoro and Dar es Salaam regions.

Original Article here

Tanzania: Organic Farming Viable Option to Curtail Climate Change

THE agricultural sector in Tanzania is the most important economic sector, constituting the largest part of Gross Domestic Product (GDP).

Research shows that 80 per cent of households depend on agriculture. This dependence makes the country more vulnerable to the effects of climate change. Farmers are grappling with inconsistent weather that have affected rainfall patterns in most parts of the country.

Michael Farrelly, Programme Officer on Climate Change and Gender at Tanzania Organic Agriculture Movement (MOAT) says that climate change will severely affect agriculture and the many millions dependent on it.

There is an urgent need for adaptation of the agricultural sector to the changes in climate. He proposes for farmers to adapt organic farming which builds the soil structure and soil fertility. Organic food means the food cultivated without the use of chemicals including pesticides and fertilizers.

Soil fertility is achieved through compost, vermicompost and numerous other techniques for maintaining soil fertility and balance. Even the land used for cultivation of organic food must be free from such chemicals for a minimum of about 3 years.

"Organic farming brings degraded soils back to productivity, it reduces soil erosion caused by wind and water. It also reduces financial risk through less external inputs and increases biodiversity and resilience to pests and disease," he asserted.

Mr Farrelly explained that the benefits of organic agriculture in climate change mitigation is to capture carbon from the air and effectively store it in the soil in high levels for long-periods; it integrates trees, hedgerows and pastures into farming systems to increase carbon capture and biodiversity.

"To reduce greenhouse gas emissions and fossil fuel use through an appropriate combination of organic fertilizers, cover crops and less intensive tillage, uses no synthetic nitrogen fertilizer, which clearly reduces emissions caused during the energy demanding process of fertilizer synthesis," he elaborated.

Farrelly's research document shows that due to climate change Tanzania will experience the following impact: There will be a 40 deg. C increase in temp (central and west of the country), a 20 per cent decrease in rainfall (central and west), a 30-50 per cent increase in rainfall and floods in the coastal area, a loss of agricultural land, shorter growing seasons and more droughts.

In Zanzibar, the Association of Vegetable and Fruit Growers (UWAMWIMA) has been practising organic farming. They have been growing spinach, ginger, cinnamon and other vegetables. Their main customers are from South Africa, Germany, China and Greece.

UWAMWIMA was launched after it was discovered that 80 per cent of vegetables consumed on the isles were from the mainland and also the prices were very high. It has helped minimize the use of agro-chemical and encourage using local available materials to reduce the cost of production and increase profit, also to produce healthy food to its customers.

The association has managed to sell over 67 tonnes of organic vegetables and spices and raked in US Dollar 186,000. Khamis Mohamed, a board Member of the Tanzania Organic Agriculture Movement and an organic farmer says there is still a high demand of organic products because there is awareness among people on the value of the vegetables.

The association started in 1999 and now has 243 members in Zanzibar, Pemba, Tanga, Morogoro, and Kigoma. "Farmers have a keen focus on organic farming because it takes care of forests and the environment in general. But mostly it provides healthy products that are free from chemicals to its customers," he said.

Rehani Mirani Secretary of UWAMWIMA, said the demand for products produced by organic farming are 65 tonnes per month, saying, however, they are capable of producing 17,000 tonnes. Their target is to produce 45,000 tonnes per month by 2015.

Original Article Here

Rwanda: Good Tidings From Agriculture Sector

There was some good news from Parliament last week. On Thursday, Prime Minister Damien Habumuremyi presented the state of the agricultural sector before deputies and Senators. This is a sector that employs over 80 per cent of the populations.

Overall there was a marked increase in crop and animal production stemming off food scarcity recently witnessed in some countries in the region. Land consolidation, hillside and marshland irrigation and the use of fertilizers were cited as some of the key drivers that were behind the increase in agriculture production.

Consolidated land increased from 250ha in 2010 to the present 624ha while 54 per cent of the farmers currently use fertilizers.

Production of some crops like maize and Irish-potatoes has since doubled; Irish potato production increased from 8 tonnes per hectare in 2007 to 16 tonnes per hectare today. There was good progress in the livestock sector with increased milk production largely boosted by the One Cow per Family Programme.

The use of marsh land for crop production has also been a big boost to the sector. Maize production is expected to hit its peak, especially in the Eastern Province where marsh land was optimally utilised.

These are enviable developments in a sector that has largely attracted little investment from the private sector and the glaring reluctance by banks to finance agricultural projects that are considered risky undertakings.

Sustaining this growth calls for sustained efforts in designing policies that will entice more investments, especially from the private sector.

These should be policies that should ensure that agriculture sector is run as a viable business and not only for subsistence production.

Policy makers will have to play a key role for this to be achieved. Recently Mt Meru, an oil company, inaugurated an edible oil refining plant in the Eastern Province district of Kayonza. This is one of the biggest investments to be recorded in agriculture by the private sector.

Swayed by the friendly investment climate in the country and soils that are condusive for oil seed production, company owners are optimistic but say more needs to be done.

For the plant to operate at its maximum capacity, they say, it will require sustained supply of oil seed. They say the plant has the potential to benefit thousands of farmers if only the right policies are put in place.

In Tanzania where the company runs a similar business, the country's parliament has put in place policies that have helped boost production of oil seeds and incomes for small scale farmers.

In the 2011-2012 budgets, the Tanzanian government decided to levy zero rate VAT on edible oil made using local oil seeds. This means that the local manufacturer has a price advantage of 18 per cent over imported palm oil and can therefore, give a better price to local farmers who, in return enhance production of seeds.

This move led to a doubling of production in just one year. This consequently resulted in better monetary returns for thousands of farmers and a boost to the local oil industry.

Such sector friendly policies, in addition to other programmes like irrigation, agricultural mechanization, post-harvest management, strengthening cooperatives, crop intensification, value addition and financing, will no doubt boost the sector that is vital to the national economy.

Original Article Here

Tanzania: Experts Tout for PPP in Agriculture

INSUFFICIENT involvement of the private sector in agricultural development is a reason for slow pace in transformation of the sector into commercial farming as the potential driver for economic growth and poverty reduction.

This was said over the weekend in Dar es Salaam by the Principal Economist in the Ministry of Agriculture Food Security and Cooperatives Ms Margreth Ndaba at the Comprehensive Africa Agriculture Development Programme (CAADP) multi-stakeholder dialogue.

"Without the Public Private Partnership (PPP) in agriculture development, commercial farming will remain unrealisable," said Ms Ndaba, also the head of Development Assistance and International Coordination in agriculture sector.

She said unreliable infrastructure like limited storage capacities, lack of value addition, poor farming technology and transport facilities retard agriculture transformation endeavours. To compliment government efforts, the PPP is the best option in commercialising agriculture activities.

The multi-stakeholder dialogue was co-organised by the Research and Social Research Foundation (ESRF) and the Food, Agriculture and Natural Resources Policy Analysis Network (FANRPAN).

In his opening remarks, an official in the Ministry of Agriculture Food Security and Cooperatives Mr Mbogo Futakamba said the meeting stems from the fact that Non-State Actors have inadequate awareness of the CAADP process in the country.

"The government values and embraces participation of non state actors in the country's development and agricultural sector in particular as a way to ending the woes of poverty in the society," he said.

The main purpose of CAADP dialogue is to ensure multi-stakeholder participation in the development and implementation of agricultural policy. Some of the Non-State Actors (NSA) are like Civil Society Organisations (CSOs), farmer and producer organisations, researchers, parliamentarians, the private sector and the media.

Mr Futakamba mentioned Kilimo Kwanza and the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) as significant initiatives which aim at greater involvement of private sector in the agriculture activities.

For example, SAGCOT's objective is to foster inclusive, commercially successful agribusinesses that will benefit the region's small-scale farmers, thus improving food security, reduce rural poverty and ensure environmental sustainability.

The PPP has emerged as a key vehicle to diversify economies, grow agribusiness, ensure food security and thrive. It also stimulates access to finance, inputs and markets for smallholder farmers.

Original article here

Tanzania: Agriculture Bank to Boost Farming

BY SEBASTIAN MRINDOKO

THE financial sector is an essential player in agriculture development, playing a facilitating role of bolstering the necessary capital for farming activities like storage, processing, packaging, transport, insurance and marketing of the produce.

Unfortunately so far, only six per cent of Tanzanians have access to financial loans from banks, with the agricultural sector accounting for only one per cent of the loans. The banking sector attributes high risk in lending to farmers as the main bottleneck. According to a recent Fin- Scope survey, the proportion of adult population using banks and other formal financial institutions is around 12.4 per cent only.

Only three per cent of agricultural households have access to credit excluding the rest from financial services that are of prime importance for supporting poverty eradication strategies. Similarly those who are totally excluded from formal and informal financial services account for 45 per cent of adults in urban and 60 per cent in rural areas. Moreover, bank penetration is lower than 10 per cent in most of Africa.

Being core implementers, small farmers lack skills and capital required to acquire and adopt new technical innovations that could help them to get out of poverty. To ensure that farmers are no longer excluded from financial facilities, the government has incorporated the Tanzania Agriculture Development Bank (TADB) to assist them in accessing inexpensive long-term loans for buying farm implements.

According to the Bank of Tanzania (BoT) Monetary Policy Statement (MPS) June 2012, the draft memorandum and articles of association for the TADB has been completed to be followed by the registration process. "The establishment of such an agricultural development financial facility in the country will be a result of efforts that started in 2000, when proposals to have a farmers' bank were put in motion," read the bank's statement.

Presenting the 2012/13 budget estimates in the National Assembly early this month in Dodoma, the Minister of Finance and Economic Affairs, said the government has allocated 40bn/- and the capital would be increased to reach 100bn/-. The upcoming TADB will be a milestone for the government, which is endeavouring to speed up the growth of the agricultural sector through its Kilimo Kwanza strategy.

To enhance agricultural sector growth which is less than 4.5 per cent per year, there is need to solve constraints that include non availability of rural credit, improved property rights and infrastructure, the Economic and Social Research Foundation (ESRF) report has portrayed. According to the ESRF report released last month on the role of financial sector in agricultural development and industrialisation, securing collateral is a large problem in the country especially for farmers who constitute the rural poor.

"Microfinance which is seen to be enhancing agricultural financing for the rural poor is also having barriers such as high interest rates and management problems as well as inadequate funds to match the demand for loans," stated the report. Microfinance institutions account for only two per cent of total assets of the financial system in Tanzania.

Agriculture is dominated by smallholder farmers who cultivate average farm sizes of between 0.9 hectare and three hectares each. The country's agriculture is rainfed. Food crop production dominates the agricultural economy and 5.1 million hectares are cultivated annually.

The major constraint facing the agricultural sector is the falling labour and land productivity due to application of poor technology, dependence on unreliable and irregular weather conditions. Both crops and livestock are adversely affected by periodical droughts. Irrigation holds the key to stabilising agricultural production to improve food security, increase farmers' productivity and incomes, and also to produce higher valued crops such as vegetables and flowers.

Original Article Here

Africa: Budget Neglects Agriculture - Activist

BY FINNIGAN WA SIMBEYE

GOVERNMENT failure to allocate at least 10 per cent of next year's budget to agriculture in line with African Union (AU)'s Maputo Declaration of 2003 is frustrating growth of the sector while putting hurdles to smallholder farmers' access to lucrative markets.

Chairman of National Network of Small Scale Farmers in Tanzania (MVIWATA), Habibu Simbamkuti told 'Daily News' on Wednesday that the government has continued to ignore the 10 per cent minimum budget allocation to the sector to meet food needs plus surplus for the export market.

"As a result smallholder farmers are regularly subjected to blockades to access lucrative markets. Apart from regular food exports ban, the government also imposes a lot of road blocks against agro-produce within the country," Mr Simbamkuti said. Delivering the 2012/13 budget in parliament last Thursday, Finance Minister, Dr William Mgimwa said agriculture which is one of the priority areas has been allocated less than 8 per cent.

Last year, the sector which is touted as backbone of the economy was allocated less than 7 per cent. Simbamkuti warned that unless annual budget allocation reaches 10 per cent, agriculture growth will continue at snail's pace which will deny smallholder farmers choice of their markets where they can earn maximum returns.

"Smallholder farmers are feeding this country but the government simply ignores them by failing to address their needs such as title deeds of their farms and houses which could enable them access bank loans," Simbamkuti noted. The MVIWATA Chairman also lamented delays by the government to establish an agricultural development bank and dismissed talk of a mini agro-window at Tanzania Investment Bank as targeting smallholder farmers.

"No smallholder farmer can access TIB loans because of lack of collateral but also prohibitive interest rates," argued Simbamkuti. Seconding MVIWATA Chairman's demand to the government to establish an agriculture development bank, Agriculture Council of Tanzania (ACT) Communications Officer, Cleophas Rwechungura said the next budget should ensure that the financial institution is established.

"The government should ensure that the agriculture development bank should start as soon as possible," argued Mr Rwechungura in a statement. Denouncing district council levies and other taxes which target commodities, Rwechungura said the government should address the hostile tax regime facing farmers.

"District councils should broaden their tax base so that the burden on farmers can be eased as crops are subject to numerous taxes," Rwechungura noted. Among other things, farmers are demanding abolition of crop access which district councils charge at between 3 and 5 per cent. ACT however has commended the government's budget saying most ministries responsible for the agriculture sector have been allocated relatively some good resources.

Original Article Here

Tanzania: Agriculture Sector to Get Hefty Funding

BY MARC NKWAME

Arusha — The African Development Bank (AfDB) has vowed to help boost the Agriculture Sector in the country through provision of major grants as part of its future strategy to aid developments on the African Continent.

"We are also going to help improve the country's electricity services through improving its infrastructure and funding new power sources including alternative means of generating power," said the AfDB President, Dr Donald Kaberuka.

Speaking to members of the press during the ongoing African Development Group's series of meetings taking place here Dr Kaberuka revealed further that, so far Tanzania is the biggest recipient of the AfDB's grants.

"But we are satisfied with Tanzania's economic performance, which has been holding very well despite challenges of global financial meltdowns. However, the country has a role to maintain the success and the only way to achieve that is through boosting the agriculture sector," said Mr Kaberuka.

He added that ample food production and security is what will help African states to remain immune to the fluctuating global economy stability by making them more self reliant.

But in the Tanzanian case, agriculture is also the biggest employer. So, Tanzania is biggest recipient of AfDB grant funds, with greater focus on road and electricity infrastructure and agriculture. The country receives half a billion US dollars.

The AfDB President also inspected the ongoing construction of the Arusha-Namanga to Athi-River road which links Tanzania to Kenya through a 250 kilometre corridor and which is among the projects that are funded by AfDB.

"I was pleased with the works on Arusha-Namanga-Athi River road which links Arusha City in Tanzania to the Athi-River township of Kenya. The time taken to travel between Nairobi and Arusha is now shorter compared to the past," he said.

"We have high hopes with the single (One-stop) border post about to be constructed at Namanga which will further ease the pace of communication and trade between the two East African Countries," added Mr Kabaruka.The AfDB boss also said that he would send a team of experts from the Bank to technically asses the construction works in the wake of claims that the Tanzanian side of the highway had been badly done.

Recently, the Minister of Works, Dr John Magufuli, ordered the Chinese constructor working on the road to repeat the works on various segments of the 104 kilometre road between Sakina and Namanga Township.

Original Article Here

Jain Irrigation to invest $375 million in African countries

PTI 

NEW DELHI: Jain Irrigation Systems today said the company will invest $375 million (about Rs 2,000 crore) over the next few years to improve income of small and marginal farmers in African countries, including Nigeria, Kenya and Rwanda.

In a filing to the BSE, Jain Irrigation Systems (JISL) said it "has agreed to partner with G-8 and various African nations to invest in Africa."

"JISL has committed investment and projects of $375 million over the next few years to build sustainable agriculture and to improve income of small holder farmers in sub-Saharan Africa," the filing said.

JISL makes drip and sprinkler irrigation systems and components, piping systems, plastic sheets and agro processed products, among other farm products.

It has presence in 120 countries and is one the largest drip irrigation companies in the world.

JISL said it will partner and collaborate with the governments of Kenya, Rwanda, Ethiopia, Mozambique, Tanzania, Ghana, Cote d'lvoire, Burkina Faso, Nigeria and others.

The company said that it is launching significant African expansion programme which aims to provide an integrated set of irrigation and infrastructure solutions for small-holder and commercial farmers.

It would also invest in creation of storage, handling, supply chain and processing infrastructure in the African countries.

"In the next few months, Jain Irrigation plans to work closely with partner countries and G-8's initiative 'the New Alliance for Food and Nutrition Security in Africa' to select priority value chains and regional locations to develop a feasibility study for the integrated approach," the company said.

Shares of the company were trading up by 0.66 per cent at Rs 76.40 apiece on the BSE at 1400 hrs

Original Article Here

Diageo to commit $3.5million into agriculture development in Africa

By: ALEXANDER CHIEJINA

Diageo, one of the world’s leading premium drinks company, recently announced that it has signed letters of intent to foster partnerships and projects that will aid in the agricultural development of Ethiopia and Tanzania.

Diageo is also expected to develop and implement scalable barley farming project in Sebeta, Ethiopia and a scalable sorghum value chain project in Mogoro, Tanzania.  The projects, when fully realised, will represent a total of $3.5M of investment and will begin to be implemented in 2012.

This new investment was announced at the Symposium on Global Agriculture and Food Security hosted by The Chicago Council on Global Affairs, in collaboration with the World Economic Forum. On the eve of this weekend’s G8 Summit, this high-level symposium brings together US President Barack Obama, with G8 and African leaders, businesses, international organisations and civil society to discuss new activities to advance global agricultural development, and food and nutrition security in Africa.

Paul Walsh, CEO Diageo and signatory of the letters of intent revealed that the complex global challenges currently been experienced from climate change to resource scarcity will require even greater cooperation and collaboration of the public sector, private sector and civil society.

According to Walsh “At Diageo we know that to achieve our business aims we have to engage our stakeholders across the whole value chain to create strong socio-economic development programmes.  It is my firm belief that the most genuinely strategic and forward looking businesses treat sustainability as a core component of business delivery.”

In Africa, Diageo currently sources about 50 percent of its raw materials locally, and aims to increase the sourcing of local raw materials to 70 percent, which is an increase of more than 30 percent from a 2007 baseline. The new projects in Ethiopia and Tanzania is expected to provide Diageo with a long-term, secure and sustainable source of raw materials, which reduces exposure to increasingly unpredictable changes in availability of material, and potentially volatile global commodity markets.

In Ethiopia, Diageo is to build a public-private partnership through which the Company will work with the Ethiopian Agricultural Transformation Agency (ATA) to design and implement a barley contract farming project strategy.  In support of the G8 Member’s pledge and in line with Diageo’s own commitment to development in Africa over the next 12 months, Diageo will design and test a pilot barley contract farming project with the aim to source 1000 metric tons (MT) barley from a substantial number of local smallholders in the first year.

In the years that follow, the project could increase in scale, extending its work with both local smallholders and larger farmers, with a potential capacity to source up to 20,000 MT of barley within Ethiopia for local use and/or export.

In Tanzania, Diageo will collaborate with the Government of Tanzania to develop and implement a scalable sorghum value chain project in Morogoro that will scale-up sorghum cultivation and sourcing in Tanzania up to a potential 20,000 MT/year by 2016, for local use and/or export.  They will also work to build genuine appetite and capacity (e.g. training, financial and physical infrastructure) to build a sustainable sorghum value chain which consists of local smallholder ‘satellite’ farming communities commercially connected with larger ‘nucleus’ farms, and will promote the development and sharing of sustainable sorghum cultivation and post-harvest practices.

Nick Blazquez, President, Diageo Africa, commented: “Diageo is proud to take part in this leadership initiative between African governments, the private sector and development organizations to accelerate the growth of agriculture in Africa. As a business that has operated across the continent for many decades, we see firsthand the importance of this agenda to local economic growth and the social empowerment of farming communities, and are fully committed  to Grow Africa and supportive of the New Alliance for Food Security and Nutrition.  In the spirit of partnership, we are excited to work closely with the Governments of Ethiopia and Tanzania to create innovative solutions that are commercially and environmentally sustainable, scalable and socially inclusive.

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Monsanto Announces $50 Million Commitment To African Agricultural Development At Symposium On Global Agriculture And Food Security

ST. LOUIS, May 18, 2012 /PRNewswire via COMTEX/ -- Monsanto Company's MON +0.19% Chairman, President and CEO Hugh Grant today will announce the company's support of the New Vision for Agriculture Initiative, the Grow Africa Partnership and the G8's New Alliance for Food Security and Nutrition through a $50 million commitment over the next ten years to support sustained Africa agricultural development and growth. The announcement is being made as part of a full-day symposium, Advancing Food and Nutrition Security at the 2012 G8 Summit, hosted by The Chicago Council on Global Affairs, in collaboration with the World Economic Forum.

During the event, G8 and African leaders, businesses, international organizations and civil society groups are convening to discuss new activities to advance food and nutrition security and agricultural development in Africa.

"I'm delighted to be here taking part in this conversation as I believe public and private sector commitment is necessary and able to support a transformation in African agriculture," Grant said. "As a company committed to improving lives through agriculture, we stand ready to work together with African leaders to turn their ideas into action with the sense of urgency and scale needed to deliver local solutions to meet our global challenges."

As part of its commitment to support food and nutrition security and agricultural development in Africa, Monsanto will seek increased collaboration among farmers, private industry, governments and civil society groups that can fuel the development of innovations to increase productivity while also strengthening the complete African agricultural value chain.

"There is no single group or simple solution that can solve the food issues facing a growing population," Grant added. "Rather, through the partnership and cooperation of many, we can deliver improvements that can drive food security, environmental sustainability and economic opportunity in Africa and beyond."

Part of Monsanto's commitment will go to its continued support of Tanzania's Kilimo Kwanza (Agriculture First) initiative focused on developing a vibrant agricultural sector that will benefit farmers in the Southern Agricultural Growth Corridor of Tanzania. The initiative seeks to improve food and nutrition security, reduce rural poverty and ensure environmental sustainability.

In partnership with the Tanzanian government, Monsanto will take a holistic approach, making commitments to key investments and partnerships that are aligned with Tanzania's agricultural priorities and that span the maize and vegetable agricultural value chains.

Plans include improved access to financial services through a partnership with Opportunity International, continued work with Tanzanian scientists through the Water Efficient Maize for Africa project to introduce new maize hybrids suitable for Tanzania and available royalty free to seed companies, support of a new depot in the agricultural corridor and strengthening of agro-dealer networks to provide more choice to farmers, support of a new initiative led by the Earth Institute of Columbia University focused on soil health to encourage best management practices, and creation of opportunities that provide farmers with improved access to markets.

Monsanto will also partner with additional organizations on the ground in Tanzania, including Farm Input Promotion Services on farmer education programs and Muunganisho Ujasiriamali Vijijini (MUVI) on the formation of farmer cooperatives that enable farmers to collectively negotiate and market their harvest.

Today's announcement is part of Monsanto's strong commitment to supporting the communities in which it operates around the world and builds on its more than forty-year commitment to agricultural development in Sub-Saharan Africa.

Symposium Details

The full Symposium on Global Agriculture and Food Security, including a 2:45 p.m. ET panel discussion on agricultural innovation featuring Monsanto Chairman, President and CEO Hugh Grant, will be live streamed at www.livestream.com/thechicagocouncil . Follow on twitter at #globalag.

Additional Resources

The Grow Africa Partnership is a platform, built on public-private partnership models piloted by the World Economic Forum's New Vision for Agriculture Initiative, that seeks to accelerate investments and transformative change in African agriculture based on national agricultural priorities. For more information, visit www.growafrica.com .

The World Economic Forum's New Vision for Agriculture Initiative works to develop a shared agenda for action and foster multi-stakeholder collaboration to achieve sustainable agricultural growth. The project is led by 28 global partner companies of the World Economic Forum, including Monsanto Company. For more information, visit www.weforum.org/issues/agriculture-and-food-security .

About Monsanto CompanyMonsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. Monsanto remains focused on enabling both small-holder and large-scale farmers to produce more from their land while conserving more of our world's natural resources such as water and energy. To learn more about our business and our commitments, please visit: www.monsanto.com . Follow our business on Twitter® at www.twitter.com/MonsantoNews , on the company blog, Beyond the Rows at www.monsantoblog.com , or subscribe to our News Release RSS Feed.

Cautionary Statements Regarding Forward-Looking Information:

Certain statements contained in this release are "forward-looking statements," such as statements concerning the company's anticipated financial results, current and future product performance, regulatory approvals, business and financial plans and other non-historical facts. These statements are based on current expectations and currently available information. However, since these statements are based on factors that involve risks and uncertainties, the company's actual performance and results may differ materially from those described or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, among others: continued competition in seeds, traits and agricultural chemicals; the company's exposure to various contingencies, including those related to intellectual property protection, regulatory compliance and the speed with which approvals are received, and public acceptance of biotechnology products; the success of the company's research and development activities; the outcomes of major lawsuits and the previously-announced SEC investigation; the previously reported material weakness in our internal controls over financial reporting; developments related to foreign currencies and economies; successful operation of recent acquisitions; fluctuations in commodity prices; compliance with regulations affecting our manufacturing; the accuracy of the company's estimates related to distribution inventory levels; the company's ability to fund its short-term financing needs and to obtain payment for the products that it sells; the effect of weather conditions, natural disasters and accidents on the agriculture business or the company's facilities; and other risks and factors detailed in the company's most recent Form 10-K Report to the SEC. Undue reliance should not be placed on these forward-looking statements, which are current only as of the date of this release. The company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results.

Contact | Media: Sara Miller (314-694-5824)

SOURCE Monsanto Company

Copyright (C) 2012 PR Newswire. All rights reserved 

Tanzania: Kikwete Welcomes Foreign Agricultural Investors

BY ABDUEL ELINAZA

Addis Ababa, Ethiopia — TANZANIA has welcomed agro-business investors from around the world describing the move as beneficial to small-scale farmers.

President Jakaya Kikwete made the appeal at the 22nd World Economic Forum, Grow Africa Forum: adding that: "We in Tanzania are ready to do business. That is why we attended this meeting."

President Kikwete said that the national agriculture investment strategy prioritizes groups that can benefit from new market opportunities and modernize the sector in order to make farming more attractive to the youth in the country.

"When we bring in the private sector the initiative is tailored to benefit the small-scale farmers. We need to modernize agriculture and make it more attractive to the youth," he said.

The president's sentiment follows the fact that about 50 per cent of the nation's population comprises young people aged below 30 years. It is most of these young people who feel that farming is a back-breaking occupation.

He said governments have an important role to play in providing support in areas of irrigation, inputs and building commodity markets. However, private sector investment is also essential to avoid over-dependence on subsidies.

The president is expected to deliver a speech at the G8 summit at Camp David in the US next week about the country's ambition to implement plans contained in the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) project, following an invitation from President Barrack Obama of US. The US pledged to support the project.

The Grow Africa Investment Forum, convened jointly by the African Union, New Economic Partnership for African Development and the World Economic Forum, engaged over 270 leaders including heads of state and governments from Ethiopia, Rwanda and Tanzania, as well as leaders of African and global business, international and donor agencies and farmers' organizations.

Participants noted that African agriculture offers tremendous growth potential to investors which can strengthen food security and economic opportunity on the continent."Greater private-sector investment and improvements to the business enabling environment are needed to capture that potential," a WEF press release stated.

Ethiopia Prime Minister Meles Zenawi, said, "We have scratched the surface, but we haven't yet broken the mould. When we do that you will see the explosion of development in Africa."

Rwandese President Paul Kagame said: "We can mobilize farmers into an entrepreneurial mindset and create new opportunities for women, youths and rural entrepreneurs." The Grow Africa partnership has developed significant momentum since it was catalyzed by African and global leaders at the 2011 World Economic Forum on Africa.

The potential seen in African agriculture presents a transformational opportunity, according to Josette Sheeran, the Vice-Chairman of the World Economic Forum.

"We're at a tipping point," she said. "Working together, we can ensure that when we meet in 10 years, it will be in an Africa that is not only feeding itself, but helping to feed the world." The Grow Africa partnership is coordinated by the African Union, NEPAD and the World Economic Forum with a goal of galvanizing sustainable investment into African agriculture, based on country-led priorities.

Rwanda, Burkina Faso, Tanzania, Mozambique, Ghana, Kenya and Ethiopia are the first countries to engage with Grow Africa, geared to meet world food demand and security. The way to realize this is through a transformation of small-scale farming on the continent by increasing the productivity of small farmers and having them well organized and collaborative, to take advantage of supply chains and investments.

Meanwhile, President Kikwete has directed the management of the Dar es Salaam Stock Exchange (DSE) to act promptly and open doors for more members to join and benefit from the stock exchange. The DSE which was established by the government and incorporated in September 1996 started trading in April 1998. Currently there are 37 shareholders.

According to a statement issued by the Presidential Communication Office in Dar es Salaam yesterday, President Kikwete underlined the need for expedited formation of capital market and commodities to protect farmers from traders who collude to dictate farm products market prices. They give minimal prices.

President Kikwete issued the directives on Thursday at the end of a guided tour of Ethiopian Commodities Exchange (ECX) where he was briefed on its operations. He was in Ethiopia to attend the World Economic Forum summit, African Zone that ended on Friday.

The Chief Executive Officer, CEO of ECX, Dr Eleni Gabre-Madhin, informed President Kikwete that the Ethiopia Commodities Exchange was established four years ago and has registered 450 shareholders. Dr Gabre-Madhin informed President Kikwete that at least four crops were traded at the stock exchange and prices are uniform all over the country. These are coffee, sim sim, maize and peas.

"Mr President, you know that the biggest lender in Africa is not the World Bank or IMF but small scale farmers who sell their crops on credit. The new arrangement has eradicated exploitation by traders. Usually a few hours after selling crops, money is deposited in the farmers' bank accounts for their convenience," Dr Gabre-Madhin explained.

Responding to the remarks, President Kikwete said the Dar es Salaam Stock Exchange should extend the horizon to allow more members especially farmers to join and benefit from the stock exchange.

"The administration must learn from Ethiopia where ordinary farmers are no longer cheated by middlemen. This (enrolment of more shareholders) must be accomplished soonest," President Kikwete emphasized.

He added, "There is no doubt the inclusive stock exchange will speed up the agricultural development process for the benefit of the people. We need a stable and undisturbed market where farmers receive suitable payments away from oppressive traders," he observed.

The activities of the DSE are monitored and supervised by the Capital Markets and Securities Authority (CMSA). The DSE operates in close association with the Nairobi Stock Exchange in Kenya and the Uganda Securities Exchange in Uganda. Plans are underway to integrate the three to form a single East African bourse.

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