Agriculture is the backbone of the economy, contributing approximately 28 percent of GDP and employing the majority of its people, particularly in rural areas.
The United Republic of Tanzania, formed in 1964 as a union of mainland Tanzania and the Zanzibar Islands, is a country blessed with abundant natural resources and diverse agro-climatic regions. With a population of over 61 million and growing at an annual rate of 3.2 percent, Tanzania has achieved significant economic milestones, boasting an average GDP growth of 7 percent over the past decade, surpassing regional and global averages.
Agriculture is the backbone of the economy, contributing approximately 28 percent of GDP and employing the majority of its people, particularly in rural areas. Smallholder farmers dominate the agriculture sector, and in doing so face challenges such as reliance on rain-fed agriculture, limited access to inputs, climate change, and infrastructure gaps. Leveraging agritech innovations to address these barriers presents an unprecedented opportunity to unlock Tanzania’s agricultural goldmine, driving sustainable development and improving livelihoods for millions.
Tanzania’s agricultural regions specialize in a variety of crops. Between 2023 and 2024, Tanzania experienced significant growth in its agricultural exports, these include cashew nuts which are predominantly grown in the Mtwara, Lindi and Ruvuma regions have their total export value more than double, increasing from $216.7 million to $448.8 million respectively. Within the same period, coffee (Kilimajaro, Arusha, Mbeya and Ruvuma regions) 25,084.14 tonnes worth $44.1 million to 94,548.85 tonnes valued at $170.2 million, Cotton (Mwanza) exports more than doubled, rising from 32,608.8 tonnes worth $15.6 million to 65,771.38 tonnes valued at $33.5 million (thecitizen.co.tz). According to the World Bank, in 2023, Tanzania exported maize worth $33.34 million, with Kenya and Rwanda being the primary importers. Major maize-producing regions include Iringa, Njombe, Mbeya, Ruvuma, and Rukwa.Tanzanian Minister for Agriculture Hussein Bashe revealed that the government has set an ambitious target to produce 15 million tonnes of maize by the 2025/2026 agricultural season which will solidify Tanzania’s position as a top 3 maize producer and exporter in Africa alongside South Africa and Nigeria.
Organizations like the Tanzania Agricultural Research Institute (TARI) and international agencies have used satellite imagery and remote sensing to create detailed maps of major crop zones.in their efforts to identify key crop-producing regions, such as maize in Ruvuma, rice in Rukwa, and bananas in Kagera.Similarly GIS technology is increasingly being used to integrate various datasets, aiding in land planning and sustainable management.In addition to this National initiatives like the Land Tenure Support Programme (LTSP) have facilitated the documentation of land rights, which supports agricultural planning.
Such Mapping initiatives as mentioned above haven’t been undertaken without experiencing challenges such as data gaps and inconsistencies due to many regions lacking up-to-date or comprehensive data especially in areas with smallholder farming, fragmented land ownership, limited funding and technical expertise which hinder the ability to scale mapping efforts across all regions. Equipment and software for advanced mapping, like drones and high-resolution satellite imagery, are not uniformly accessible, poor road networks and weak internet connectivity challenge the collection and real-time updating of data and while top-down mapping initiatives are common, bottom-up approaches that engage farmers in data collection and validation are often overlooked, reducing the relevance of maps for local use.
Despite the above challenges, we believe there are opportunities to implement practical and sustainable solutions such as; expanding public-private partnerships to fund and support mapping initiatives, leveraging emerging technologies like AI and drones to streamline data collection and analysis. establishing national frameworks for standardized data collection to ensure consistency across regions and enhancing capacity-building programs to train local experts in GIS and remote sensing.
Beyond mapping, the sourcing of agricultural products in Tanzania has been characterized by infrastructural challenges, limited market access, with the most common challenges being; poor road conditions and inadequate transportation facilities impede the efficient movement of goods from farms to markets, leading to increased costs and post-harvest losses. Market access limitations especially for smallholder farmers who often struggle to access markets include a lack of market information, fluctuating prices, and the absence of organized supply chains, which affects their participation in the agricultural market, Climate change has also had its impacts such as changing weather patterns and prolonged droughts which threaten agricultural yields, necessitating the adoption of climate-resilient farming practices.
And lastly is financial constraints due to limited access to credit and financial services therefore restricting many farmers’ ability to invest in modern farming techniques and technologies, affecting the quality and quantity of produce available for sourcing.
In dealing with the above challenges related to sourcing of agricultural products. We at Agrosoko are implementing our own technological solutions and tools to improve sourcing needs of small holder farmers and farmer groups which we ensure are accompanied by farmer empowerment through provision of a platform to access information/data, training, and resources that can help them make informed decisions and improve crop quality. Currently, our Warehouse management system (WMS) and farm management platform enable farmers to do so.
This now brings us to selling of agricultural products both locally and internationally through export. In Tanzania, the sale of agricultural products is predominantly managed by smallholder farmers who often rely on an extended network intermediaries to access local and international markets. These farmers face challenges such as limited access to market information, inadequate infrastructure, and fluctuating prices, which can hinder their ability to secure fair prices and reach broader markets. Through the Agrosoko marketplace, buyers are able to see in real time available products at the current market price that are stored within the Agrosoko registered warehouses and fulfillment centers that are ready to be sold.
Implementation of these solutions will be further enhanced through the increased support for expansion of digital solutions for small holder farmers under the Joint Sustainable Development Goal Fund Initiative (led by UNCDF, FAO, UNDP and IFAD) which will focus on implementation and expansion of digital solutions for smallholder farmers, aiming to overcome data limitations that hinder agritech growth, particularly in rural and underfunded regions. By improving data sharing and access to public datasets, this initiative will enable a more inclusive digital agricultural ecosystem. These advancements can lead to more efficient supply chains, reduced post-harvest losses, and improved market access for Tanzanian farmers.
The Tanzanian government, alongside various companies and agricultural stakeholders are also actively addressing challenges related to lack of digital literacy, limited internet access, and financial constraints faced by smallholder farmers. Initiatives such as the Shamba Box Digital Literacy and Inclusion Program, launched in 2020 in Arusha, aim to empower smallholder and youth farmers by enhancing their digital skills and access to information. This program focuses on providing training and resources to improve farmer proficiency with emerging digital tools, therefore enabling them to leverage technology effectively.
Financial institutions are also contributing to these efforts. For instance, CRDB Bank’s IMBEJU Kilimo program empowers small-scale farmers with financial literacy, digital finance solutions, and seed capital, facilitating their integration into the digital economy. In addition, the United Nations Capital Development Fund (UNCDF) has pledged to support and partner with digital platforms to link farmers to formal financial products and training on good agricultural practices, thereby enhancing their financial inclusion and capacity to invest in modern farming techniques which include adoption of modern agritech tools. These collaborative efforts are instrumental in overcoming the barriers that hinder smallholder farmers from fully participating in the digital transformation of agriculture in Tanzania.
Agritech is and will continue to play a transformative role in enhancing the mapping, sourcing, and selling of agricultural products in Tanzania.
We now know how effective mapping technologies such as GIS and remote sensing can enable detailed land use analysis and crop distribution insights, optimizing resource allocation and identifying high-yield regions. Likewise, sourcing and selling benefit from digital platforms that streamline supply chains, reduce post-harvest losses, and ensure timely delivery of products to markets. In addition to this, Agrosoko’s tools will also include traceability features detailing different agricultural products and their seasonal output data by different farmer groups and cooperatives across different regions as well as a dynamic mobile app and web marketplace for market price updates which will empower farmers to negotiate better deals and help them expand their reach to international markets which in turn boosts competitiveness and revenue.
To incentivize local farmers and stakeholders to adopt agritech, we will continue to encourage our government to integrate agritech solutions into national agricultural policies and provide grants for startups in this field which would spur innovation and adoption. Financial inclusion is also very important. Offering tailored financial products, such as microloans for agritech investments, would empower smallholder farmers to afford and integrate modern technologies.
