Monday 29 March, 2010 kilimokwanza@guardian.co.tz
Finance Minister Mustafa Mkullo
The Guardian KILIMO KWANZA
Monday 29 March, 2010
The Guardian KILIMO KWANZA
Monday 29 March, 2010
COVER STORY
EDITORIAL
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Government makes agriculture top priority
inside
Government makes agriculture top priority In the next three years, Tanzanians are set to witness a fundamental transformation of their country’s economic and physical landscape, as the Fourth Phase government moves to refocus all development activities around the agriculture sector
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SIDO IN KILIMO KWANZA CAMPAIGN
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All ministries’ budgets to refocus on Agriculture
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GRICULTURE, Food Security and Cooperatives minister Stephen Wassira was recently quoted as reiterating the fact that it would be foolhardy talking about Tanzania’s economy without discussing the country’s agriculture.
With an overwhelming 80 per cent its population engaged in agriculture, and therefore deriving a livelihood from the sector, Tanzania is indeed a predominantly agricultural economy – meaning that agriculture is by all accounts the major economic activity in the country. Wassira and his Finance and Economic Affairs counterpart Mustafa Mkullo speak much the same language. The latter says until recently agriculture accounted for over 40 per cent of the country’s gross domestic product, contributes over 30 per cent of the total value of the country’s exports and 70 per cent of employment opportunities and contributes some 65 per cent of the raw materials fed into the country’s manufacturing sector. Thus, alongside being a major foreign exchange earner that therefore plays a truly crucial role in the country’s social and economic development, agriculture has crucial forward and backward linkages to manufacturing and other key sectors of the economy. As notes times without number, good performance of this sector is vital for the eradication of hunger, alleviation of poverty, the control of inflation, promotion of economic growth and stability of the national economy. This is primarily why Southern African Development Community member states have jointly and severally seen the need to develop, coordinate and harmonise policies and programmes that enhance, on a sustainable basis, agriculture and natural resources production and productivity as well as overall food security. The bloc has long endorsed plans of action to reverse the situation with strategies seeking to increase sustainable agricultural financing and investment, enhance production and availability of food, improving access to safe and nutritious food, strengthening disaster preparedness, and mitigate the impact of HIV/AIDS on agriculture and food security. SADC has gone on to underline the need to establish a regional food reserve facility as part of its disaster preparedness strategy as well as draw up an irrigation development and water management programme. The bloc has further been advocating timely provision of and access to key inputs such as seed, fertiliser and agro-chemicals as well as increased production and wider consumption of drought-resistant, particularly in especially lean years. Both Wassira and Mkullo fully subscribe to SADC’s ideas, plans and strategies, which they see tying in excellently with those of Tanzania, where agriculture has long been widely viewed and described as the backbone of the
national economy and the plan has all along been to give it first priority. Both ministers rightly view ‘Kilimo Kwanza’ as essentially an integral part of a structural adjustment programme aimed at seeing Tanzania undergo a Green Revolution, on part by pushing for enhanced R & D in agriculture. For his part, Wassira confesses to the fact that the 1980 and 1990s saw the country’s agriculture wilt mainly because research was relegated to the back burners. He sees the ongoing Agricultural Sector Development Programme as basically an investment initiative of investing into communities and supporting them in starting, developing and maintaining small-scale irrigation projects and imparting to farmers the knowledge about the basics of improved agriculture. The central government and local government authorities chip in with funding, mainly in the form of subsidies to farmers for the purchase of inputs like fertiliser and improved seed, but also in training aimed at modernising small-holder agriculture activities. But the Finance minister has even better news for the nation: not only is the process expected to lead to the birth of a national agriculture development bank is going on well but a special window through which to support agriculture is already in place at the Tanzania Investment Bank. Want to hear more? The minister reveals that the government allocated 20 billion/- to ‘Kilimo Kwanza’ in the 2009/2010 budget, the total budget for agriculture standing at 666.9 billion/- and including 40 billion/- for irrigation. True to its word, and in the spirit of the SADC protocols, the government made agriculture one of the priority areas in this financial year’s budgetary allocation and has promised to consider the sector a lot more favourably come FY 2010/2011. Mkulo says his ministry has “the task” of increasing budgetary allocation to ‘Kilimo Kwanza’, which will go alongside mobilising loans and grants arrangements for the planned agriculture bank. He has further not only stated that the budgets of all other ministries will similarly be oriented to supporting ‘Kilimo Kwanza’, adding that the government would encourage Tanzania’s development partners to support the initiative. This should go a long way in making ‘Kilimo Kwanza’ tick, which should herald the dawn of the Tanzanian Green Revolution we have been craving for.
Wallace Mauggo Editor
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A day in Msimbazi Valley, Dar es Salaam’s vegetable garden Msimbazi Valley was declared a disaster area, that means it is not supposed to be inhabited. There was only one solution given: Relocate. But photojournalist Sayuni Kimaro found a different story on the ground after day’s investigation 6
Tanzania can become world’s biggest food exporter Egypt's future depends on agriculture and yet it is a desert country.Tanzania can do the same with its water and fertile soil, to become the world’s top food exporter, says the Egyptian ambassador 8
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In the next three years, Tanzanians are set to witness a fundamental transformation of their country’s economic and physical landscape, as the Fourth
Phase government moves to refocus all development activities around the agriculture sector.
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peaking exclusively to The Guardian Kilimo Kwanza, Finance and Economic Affairs Minister Mustafa Mkullo disclosed that the budgets of all government ministries are being refocused “to ensure that they are in line with the implementation of the Agriculture First Strategy”. Said the minister: “Each ministry has to implement the Kilimo Kwanza strategy in line with its core activities. Out of the nine pillars of Kilimo Kwanza, the Ministry
of Finance and Economic Affairs has a responsibility ion the second pillar which is financing the Agriculture First strategy. The ministry has the task to refocus ministries’ budgets to consider that they are in line with the implementation of the Agriculture First Strategy.” Mr Mkullo further disclosed that over the next three financial years, government is going to fund the irrigation of seven million hectares. This could easily be the largest public programme in the country’s history. Currently, only one and a half million hectares of land are under permanent agriculture. But even intermittent agricultural activity only brings the total to four million hectares. Now the budgetary allocations for financial years 2010/11 – 2012/13 are going to provide funds for irrigation “over seven million hectares”, that is increasing the land today under permanent agriculture by 500 percent. The minister further revealed that the government will go out to “encourage Development Partners to support Kilimo Kwanza”. Late last year, the development partners called a meeting with the government to reach an understanding over Kilimo Kwanza. Recently, the European Union came out to openly support the strategy and pledge to give assistance to it. According to Mr Mkullo, government will also go out to mobilise grants and loans for the proposed Tanzania Agriculture Development Bank. While the process of setting up the bank is still under way, the Tanzania Investment Bank is set to open a special window that will serve the agriculture sector. FULL INTERVIEW, Pages 4 and 5
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Taking the funding where it belongs
The process of establishing Tanzania Agriculture Development Bank (TADB) is going on well. So far, the concept paper and terms of references to be used by the consultant for the feasibility study have been prepared.
The Guardian KILIMO KWANZA 4
Monday 29 March, 2010
The Guardian KILIMO KWANZA
Monday 29 March, 2010
WHAT OTHERS SAY
COVER STORY
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All ministries’ budgets to refocus on Agriculture The Minister for Finance and Economic Affairs Mstafa Mkullo takes The Guardian’s Angel Navuri through the process of establishing the Agriculture Bank and government’s move to refocus the budget in support of agricultural development
President Jakaya Mrisho Kikwete launched Kilimo Kwanza last August.
QUESTION: Where is the agriculture bank that we have been hearing about? ANSWER: The process of establishing Tanzania Agriculture Development Bank (TADB) is going on well. So far, the concept paper and terms of references to be used by the consultant for the feasibility study have been prepared. While there is this process, a special window for agriculture has been established by the Tanzania Investment Bank. In considering Kilimo Kwanza, in the budget of 2009/10, the total amount of 20bn/- was allocated and the government has already spent 3bn/- for this purpose. Q: How is TADB going to operate? And when is it starting? A: The motivation of TADB is resolving the multifaceted problems in Tanzania’s agriculture sector that lie in long-term financing for agriculture at reasonable financial terms. It is envisaged that large scale borrowers would conduct appraisal, approval and monitoring of loans. Medium scale borrowers and small scale borrowers (who must be a member of a registered group) would submit their loan request to TADB through intermediaries such as commercial banks, community banks and SACCOS. Intermediers will ensure that the applicants have complied with the loan application checklist and submit the application to TADB and remain the link between the applicant and TADB. Q: Will it also be able handle individual farmers as customers? A: This will be cleared after the submission of the feasibility study report by the consultant. Q: What is agriculture’s contribution to the GDP, export earnings, employment and industrial inputs? A: Until recently, agriculture accounted for over 40 percent of the country GDP. It contributes over 30 percent of the total value of the county’s export and 70 percent of employment opportunities. The sector also contributes and 65 percent of the raw materials used in Tanzanians manufacturing sector.
Prime Minister Mizengo Pinda, champion of Kilimo Kwanza in the government.
Over 7,000,000 ha to be irrigated
A modern irrigation water station. Tanzania will have to build many of these in the next three years
A: Exactly how much has the government put up for agriculture this financial year apart from the shs 40bn/for irrigation? A: In 2009/10, the budget allocation for agriculture sector was 666.9bn/-. The percentage of the national budget allocated to agriculture has increased from 2.9 percent in 2001/2002 to 6.4 percent in 2008/09, and the implementation of the Budget and plan Guideline for the year 2010/2011-2012/13 will also focus increasing budgetary allocation to irrigate over seven million hectors. Q: In 1982, Mwalimu Nyerere said that all ministries’ activities should be planned around serving the agriculture sector? How far is the government today upholding the idea? A: A number of plans and programs were initiated in the past in an effort to improve the agriculture sector, these include, the Iringa Declaration of “siasa ni kilimo”, followed by “Kilimo cha Kufa na Kupona” just to mention a few, and above all, the
Arusha Declaration’s main pillar was agricultural transformation. The vision 2025 main focus is transforming the agriculture sector so do the CCM party 2005 Manifesto and different government programme (ASDP), MKUKUTA, KILIMO KWANZA. So the current government is not far from the Mwalimu Nyerere’s idea, it is continuing with the idea in various ways. Now as we have the Kilimo Kwanza strategy, each Ministry has
to implement the Kilimo Kwanza strategy inline with its core activities. Out of nine pillars of Kilimo Kwanza, the Ministry of Finance and Economic Affairs has responsibility in a second pillar which is financing the Agriculture First strategy. The Ministry has the task to refocus Ministry budgets to ensure that there are inline with the implementation Agriculture First Strategy. Q: What are other incentives are
there for the local farmers? A: For the year 2008/09, budgetary allocation to agriculture was 6.4 percent of the budget, of which a large portion has been allocated for fertilizer subsides, the Special Grain Reserve (SGR), Research on Particularly on improved seeds and training , these were incentives to all farmers. Q: On the current situation in
Rukwa where framers have produced maize which is rotting, does the government has any plans to promote the setting up of primary industries for processing and protecting the farm produce? A: Government is putting efforts in collecting all excess produce in all regions so as to supply regions with shortages. The agroprocessing industry in Tanzania is still in its infancy stage and Government is put-
ting efforts in it and looking for forward linkages in agriculture. Likewise, Government recognizes the role of the private sector in such industries. Therefore, government ensure that there is conducive environment for private investors who can invest in agro- industries. Government through the National food Reserve Authority is collecting and preserves all the produces before supplying them to the areas which have shortages.
Q: The Government said that next budget will have lots of focus of Kilimo Kwanza, what is it that the government is focusing on, where is the different? A: For the financial year 2009/10, agriculture was one of the priority areas in budgetary allocation. By implementing the second pillar of Kilimo Kwanza, Ministry of Finance and Economic Affairs has a task of
increasing budgetary allocation to Kilimo Kwanza, this will go together with mobilizing loans and grants arrangements for TADB, budget of all other ministries to be oriented to supporting Kilimo Kwanza and encourage Development partners to support Kilimo Kwanza. Q: How is the government expenditure going to change and reflect that Kilimo Kwanza is a priority?
A: Agriculture is among the sectors which are given priority in budgetary allocation. There are agriculture plans, programs and activities which most of them are under ASDP. These plans, programs and activities have a range of priorities that should be directed on priority basis. In 2010/11. The budgetary allocation for agriculture will be increasing progressively.
The Guardian KILIMO KWANZA 6
Monday 29 March, 2010
URBAN FARMING
URBAN FARMING
A day in Msimbazi Valley, Dar’s vegetable garden M By Sayuni Kimaro
simbazi Valley was declared a disaster area by the government, that means it is not supposed to be inhabited because of the high flood risks and associated health hazards. There was only one solution given: Relocate. The public has also been repeatedly warned against consuming vegetables grown in the valley, because of dangerously high levels of heavy metal content in the polluted river water which is used to irrigate the vegetable gardens. But that does not mean activity or settlement in Msimbazi has stopped. In fact as some people obey the directive to relocate, others arrive, determined to take advantage of the cheap plots for farming and building. Kilimo Kwanza’s Sayuni Kimaro last week toured the area and talked to the farmers who live dangerously and continue feeding Dar es Salaam with tonnes of vegetables whose safety has been questioned by health officials. Although the government alerted people that the water from Msimbazi valley is heavily polluted and therefore cannot be used for irrigating the vegetables and advised people to leave the area, many have simply refused to move, arguing that they fully depend on the farming activities for the survival of their families. They have
The Guardian KILIMO KWANZA
Monday 29 March, 2010
pledged not to use the Msimbazi stream water for irrigation and that they would dig and obtain clean water. But can we take their word completely on this? During interviews with these urban farmers, their leader Mr. Evarist Leo told Kilimo Kwanza that practicing agriculture in the area is very challenging as the climatic condition of the region is not so good for practicing farming and the soils in Dar es Salaam region are not particularly fertile as they are mixed alluvial deposits (sands, silts and clay). Leo noted that the main problem they face in fulfilling their duties is lack of adequate water. According to him farmers in the area are forced to invent their own ways of getting water for their vegetable plants. Some of the farmers in the area made a crude borehole and obtain water from it and use empty buckets to create a high point from which gravity can be used to distribute the water. The contraption is reminiscent of ancient Egyptian shadoofs, though it being used right in a modern city of the twenty first century. Explains Leo, “What we do then is to fetch water from the bowl and fill it in the buckets from where it is streamed to reach to the sprinkler and thus watering the plants. It is very hectic to do that as you have to use much energy for almost the whole day lifting the buckets. “To be honest, there is nothing good when it comes to urban agriculture. The government does not support us at all despite the fact that we are the main veg-
Desperate Msimbazi farmers nearly lynch photojournalist etable suppliers of the city,” Leo said Another irritated who identified himself with only one name as Mroki, bitterly stated that they never to see any person especially the from journalists to researchers going to the valley claiming to interview them. At some stage he lost his cool attacked this reporter by throwing hardened dry mud lumps at her. “You are the people who promised us wells which we have never seen”, he yelled. “You know what lady, for your own sake just disappear and never come back. Who do you think you are fooling here? Since I started practicing vegetable farming in this area, that was more than ten years ago, nothing has changed. People are using us in request for donor funds for their projects but we have not seen any development.” Grabbing a stick and menacingly approaching this reporter again, he hissed: “There is no single well that will enable us producing vegetables of high quality. We are loosing a lot nowadays as the plants are being attacked by pests and diseases. We also know the water being used is not that good.” That was the time to flee, as other angry farmers joined Mroki and tried to assault this reporter.
A close survey of the area before the situation turned dangerous for this reporter found that the farmers queue up for the improvised tap water to water their plants as others are busy filling the upstanding buckets at the beginning of the crude system. Most of them were complaining about the quality of water for irrigation. Only few urban farmers have access to safe, piped water. “If at all the government acknowledges what we do here they would have provided us with at least a well and pump to easy our work a bit,” One George Paul complained. This was not the right time or place to remind them that they were not supposed to be there in the first place. But they continue to provide a big part of Dar es Salaam’s leafy vegetables like mchicha (amaranthus), sweet potato leaves, pumpkin leaves, cassava leaves, sweet paper, hot paper, okra, cucumber, cabbage and cowpea leaves. Amongst the reasons why the polluted valley continues to “thrive”, as Mzee Leo observes, is proximity to the market. The highly perishable vegetables do not tolerate long journeys. This remains an advantage for the Msimbazi vegetables which reach the markets in fresh condition, and also face low transportation costs.
The condemned farmlands of Msimbazi valley are largely watered with polluted water but provide a lot of Dar es Salaam’s vegetables. The desperate farmers have even improvised to come up with water distribution contraptions reminiscent of the ancient Egyptian shadoof. All photos by Sayuni Kimaro
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“Egypt's future depends on agriculture and yet it is a desert country. Tanzania can do the same because it has water and fertile soil. Go ahead and use it, we are there to offer the help that we have, for we have a common destiny and together we can be much stronger than separate.” These were opening words of the Egyptian Ambassador to Tanzania, His Excellency Wael Adel Nasr,
Monday 29 March, 2010
WHAT OTHERS SAY
Tanzania can become world’s biggest food exporter as he explained to The Guardian’s ANGEL NAVURI how his country can assist in the implementation of our green revolution, Kilimo Kwanza.
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gypt has always been what she is today - a predominantly agricultural country. The fertility of her soil and the climate with which she is favored have made her products a standard of
excellence. Life in Egypt focused largely on agriculture. Majority of the population was involved in farming. Wheat, fruits and vegetables were the principal crops, although there was some pastoral farming of cattle, sheep, or goats. The Egyptians cultivated
three kinds of wheat, several types of barley and flax, their main source of textile fibre. For a second crop, or in garden plots, a wide variety of vegetables were grown including onions, garlic, leek, Egyptian lettuce, radishes, cabbage, asparagus, cucumbers, lentils, peas, beans and many spices. When the Nile subsided, the water would slowly run off, leaving behind all the fertile mud and silt which would then soak down deep into the soil. About a month and a half afterwards, the farmer would return to release the remaining water, now turned blackish through evaporation. Once the water had completely drained away and the ground was firm enough to walk over, the fields were ploughed once or twice with oxen pulling the ploughs. Using hoes, the remaining clumps of soil were broken up. When the seed was thrown over the field, animals were again used to tramp the seeds into the soil. “Agriculture in Egypt isn't seasonal except in some areas It depends on Nile River and they plant seasonal crops on its banks. The country is dissected by the River Nile, as it flows north to the Mediterranean Sea, and the surrounding Nile Valley, 5-10 miles wide, is the country's only fertile land and home to 98% of the population. By 19950 Egypt was faced with serious shortage of arable land, water, food and social services. The country sought knowledge from outside including Canada, Germany, France and the US. Today, Egypt, which has one million square kilometers (386.6
Egypt’s Ambassador to Tanzania, His Excellency Wael Adel Nasr square miles) of land uses less than 4% is for crop production. The 82 million people live on only 40.000 square kilometers. We concentrate most of our efforts on agriculture because our survival depends on it. ” Question: What is the nature of Egypt’s assistance to Tanzania in the agriculture sector? Answer: We signed a contract with the Tanzanian government and for instance we have been drilling boreholes. At first we had sunk some 30 and now 70. In the coming year we will be sending more than 150 students to Egypt for studies in Agriculture and other courses too. The Egyptian Polyserve Group of Companies is expected to build a 600bn/fertilizer plant in Mtwara Region. In the fist phase it will employ 4,800 workers and second phase will employ 23,000 staff. Polyserve is just waiting for the government’s go-ahead. Presently, the fertilizer consumption in Tanzania is below the international levels. Though it is a prime agriculture element, fertilizer is totally imported due to non-existence of local production. Tanzania thus imports fertilizers using its meagre foreign exchange reserves. Q: Will assistance from donors lead to development of Tanzania’s agriculture? A: No, it won’t. If Tanzania’s agriculture has to be self sustaining and it should be done by Tanzania themselves. Q: What can be done to improve the agriculture by the Tanzanians? A: As long as water is well utilized then Tanzania could perform well. The point is not lack of water as its being propagated in the media but it is water management. We have tried to help with water management. There has been high cooperation with other countries like Sudan and we expect to have the same cooperation in Tanzania as we consider our future as one.
Tanzania has the most fertile soil I have ever seen. I have successfully grown fruits in my garden here at my residence. It is fantastic. Then the water in Tanzania is more than enough. If its well utilised, Tanzania could easily become the biggest food exporter in the world. Tanzania has everything; the number of lakes, its unbelievable. If Egypt could have just 1 percent of the rivers in Tanzania, it could do wonders.
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Q: What is your view of Kilimo Kwanza? A: We are ready to support it. It is in our interest so we can import from Tanzania in future. The Nile Basin countries should come up with a unity policy so that we can utilise basic agriculture inputs to become the richest countries in the world.
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Q: What are the outstanding achievements of Egyptian agriculture? A: President Mubarak summarised the objective of his plan for agriculture in one simple sentence: “ He who doesn't have his food for the day, doesn't have freedom over his decisions.” In order to achieve his plans President Mubarak did the following: 1. Reduced the price of dessert land 2. Ordered that all farmers requests addressed. 3. Initiated total reform and liberalization of the agricultural economics in Egypt. 4. Allowed full freedom to farmers in choosing the crops which they want cultivate. 5. Allowed full freedom of internal and external trade of crops and agricultural machinery. 6. Established hundreds of agricultural research centers, and laboratories. 7. Implementation of the biggest project of overcoming agricultural pests using biological means, achieving a reduc-
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tion of 90% in using chemicals. Establishing a Union for Agricultural Cooperatives, to protect the rights of farmers. Establishing the second biggest agricultural library in the world after the American Agricultural Library. Adding more than 2.2 million feddans (acres) of agricultural lands, 250.000 of them are in the dessert land of Sinai. Creating more than 2 million job opportunities in the sector. Implementation of Mubarak's National Project for acquisition of Agricultural Lands for newly graduated students from Universities. Issuing electronic certificates (title deeds) for land lords, in order to protect their rights. Starting the reclaiming and cultivating of 3.4 million feddans of dessert from 1997 till 2017. Increasing yearly agricultural exports by 15% or 20%. Increasing the growth rate of the sector to 4.1% by the year 2017. Starting the restructuring of the Egyptian Agricultural Credit Bank, with all credit facilities especially to small farmers.
Q: Has agriculture helped industrialization in Egypt? A: Egypt’s Ministry of agriculture lays great stress on the agro industry as it plays a vital role in the national economy of Egypt, as 20% of the Gross domestic productivity or GDP as well as exports is coming from that sector, and 34% of employment is provided by the Egyptian agricultural industries. The agriculture industry supplies food to the people of Egypt. The industry also covers commodities like pesticides, agriculture machinery, agriculture tools and chemical fertilizers. And the Egyptian agriculture industry also provides funds for other industrial sectors of the economic set up.