Tuesday 10 August, 2010
SUPPORTING THE PROMOTERS OF THE GREEN REVOLUTION
kilimokwanza@guardian.co.tz
One year after the launch of Kilimo Kwanza Tuesday 9 March, 2010
Tuesday 16 March, 2010 kilimokwanza@guardian.co.tz
kilimokwanza@guardian.co.tz
Monday 29 March, 2010
Monday 22 February, 2010
kilimokwanza@guardian.co.tz
kilimokwanza@guardian.co.tz
Like the chicken and the egg question, govt and intellectuals dispute the position of research in Kilimo Kwanza:
Finance Minister Mustafa Mkullo
Monday 12 April, 2010
Tuesday 27 April, 2010 kilimokwanza@guardian.co.tz
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Tuesday 29 June, 2010 kilimokwanza@guardian.co.tz
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The resources of River Nile are for all countries not for some or a few countries
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Asfaw Dingamo Ethiopian Minister for Water Resources
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Tuesday 18 May, 2010
kilimokwanza@guardian.co.tz
Our current water rights are a red line
Ahmed Abul Gheit Egyptian Foreign Minister
Taking stock
SUPPORTING THE PROMOTERS OF THE GREEN REVOLUTION
kilimokwanza@guardian.co.tz
Planting maize banned Residents must harvest rainwater Unused fertilizer confiscated
The Guardian KILIMO KWANZA
Tuesday 10 August, 2010
EDITORIAL
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s we start the second year of Kilimo Kwanza, there is great concern that many Tanzanians are yet to take advantage of the enormous opportunities the agriculture sector offers, offering the tired chorus of “no capital” in explanation. Although the most important requirements for agricultural production - land and water – are massively abundant in Tanzania, it is the additional inputs that hinder our people from engaging in gainful farming. Several government and nongovernmental agencies are working hard to bring Tanzanian farmers into the mainstream cash economy. The Bank of Tanzania has established the Small and Medium Enterprise Credit Guarantee Scheme towards promoting and supporting farmers by creating an enabling environment for expansion and facilitating access to financial resources, thereby accelerating economic growth and job creation. For its part, the Private Agricultural Sector Support trust is helping thousands of farmers access loans from established banks more easily by helping them navigate through the almost insurmountable hurdles of complicated financial documents that a bank requires from potential borrowers before considering their loan applications. At the same time, another type of bank is about to open its doors, this time dealing not in cash but in large tracts of land. The land bank has al-
Let us promote financial literacy for all ready collected large ‘deposits’ in terms of thousands of hectares, but it is definitely not going to deal with financial illiterates when issuing out this valuable asset. It is only fair and in order that members of the public alive today as Kilimo Kwanza takes root do benefit from this new initiative that is set to transform the country fundamentally. But it is disappointing to note that most citizens, including some highly educated ones, do not possess the basic financial literacy to take advantage of their country’s massive natural wealth. Even people with a Commerce or Accounting degree can blame their lack of prosperity on lack of capital, yet they are theoretically qualified to advise others on modern ways of mobilising capital. Everyone can be an investor at different levels. To be an investor is essentially a state of mind. Investors do not have to carry millions of dollars from their bases to the new locations where they want to invest. An investor goes to a new place and organises the resources there, including money, for production. Our people need to understand money if they are to make use of the other resources nature has bequeathed to them. Most Africans are yet to grasp the concepts of paper wealth, now digital wealth. They are more comfortable dealing with physical things they can touch. No wonder, many of our people will invest their savings, plus borrowed money, in a small plot without first securing documentary proof of ownership. Many even settle on a
piece of land without first finding out if it is gazetted for another purpose. Many do not even know about the physical planning departments of their localities, which determine what can be done where. So when at some stage their illegal houses are set for demolition, they feel aggrieved and do not understand that they have always been in the wrong. As President Jakaya Kikwete has time and again appealed to Tanzanians, they should go out and secure registerable interest in the pieces of land they occupy. This is the first stage for the farmers to enter the formal economy. With documentary proof of proprietorship, one can start talking to a financial institution. But it is not enough to throw money at people just because they have security to offer as collateral. Many borrowers have misused loan money, and ended up losing their property. Basic financial literacy needs to be infused into the society through all available fora. From education institutions, societies such as SACCOs, workplaces and in the very banks that give the loans, before they disburse the money. There is a need to distinguish between personal assets and those of the farm/business. It is a lot of work, and the sooner it starts the better.
Wallace Mauggo Editor
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By Abdallah Bakari,
inside
HE introduction of green peas as an alternative cash crop to cashew nuts has greatly improved food security and economic conditions in Nanyumbu District of Mtwara region. According to the area District Commissioner (DC), Fatma Ally, green pea farmers in the area earned TSH 1.5 billion from the sale of over 1,218.7 tonnes of the legume in the last harvest season. Last year the district had a shortage of 2,570 tons of food, culminating in famine. However green peas grown by farmers in four divisions, 14 wards and 86 villages in the district has now reversed this. The legumes fetch a higher market price of 1500/- per kilo compared to 994/per kilo for cashew nuts. Furthermore the sale of green peas is done in hard cash, unlike the three separate installments as is the case with cashew nuts. Farmers are also being encouraged to grow other profitable alternative crops like pigeon peas whose farm price is 800/- per kilo, ground nuts and sesame. Confirming these successes, the District Executive Director, Mr. Adoh Mapunda said that his council has realized 60.9m/- in crop taxes. This has supported other development projects. Green pea farming is more cost effective than cashew nuts. Estimates by agricultural specialists have cashew nut production costs at an average of 1000/- per kilo, compared to 500/- per kilo for green peas. It also takes three to five years between planting and first harvests for cashew nuts, compared to only 60 days for green peas. Optimistic Nanyumbu farmers now fell they are playing their part in furthering the Kilimo Kwanza initiative. “I don’t count how many power tillers have been bought because buying tractors and power tillers without measurable impact to farmers is may not amount to much. I prefer to use growth in income and crop production to evaluate the implementation of Kilimo Kwanza.” These are the sentiments of Mr.
Changing the mindset A year since the launch of the country’s Green Revolution, Tanzania National Business Council (TNBC) say they haven’t faced any obstacles against the success of Kilimo Kwanza but that changing the mindset to support its implementation at all levels remains the main challenge.
Chillies arrive at doomsday bank
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Seeds from some of North America's hottest food crops have arrived on the Arctic Archipelago of Svalbard to be stored in a "doomsday vault. Here, seeds from the present age are kept in case the earth is destroyed by war or if an epidemic wipes out today’s humans, future beiungs will be able to replant the species...
The Guardian KILIMO KWANZA
Tuesday 10 August, 2010
DIVERSIFICATION
Green peas delivering Nanyumbu District from famine to properity
Central Bank sets up farmers’ credit guarantee schemes
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Abdallah Mangaka, a farmer in Nanyumbu district who feels that the implementation of Kilimo Kwanza in his district has borne many positive results. The farmer who made a million shillings from the sale of 800 kg of green peas affirmed that the new cash crop has greatly reduced the threat of hunger and improved economic conditions in the area. He said that farmers used money made from the sale of green peas to purchase food for domestic use, bicycles, motorcycles and other resources. Famine has also taught farmers the importance of food storage, further bolstering food security. Mangaka applauded the efforts and creativity of area DC and her team in eliminating the former dependency on cashew nuts as the single cash crop. Mr. Ally Kwayani, the Secretary General for Mangaka Primary Cooperative Society which buys crops directly from farmers in the district also acknowledged that green peas has revolutionized the economy of Nanyumbu. In the period May 2009 – July 2010 for example, the cooperative made 4.5m /- in commissions and taxes from 105.5 tonnes of green peas. On his part, the Assistant Secretary General for the cooperative, Thabiti Geugeu noted that current challenges include ensuring ready markets for the produce and protecting crops from the colonic parasite which can destroy farms. Speculating on the future, the area DC said that her mission is to improve the standard of life for area residents by putting emphasis on food sufficiency, budgeting at household levels, construction of standard housing and supporting the education of children. Located in the western part of Mtwara Region, Nanyumbu District was formed in 2005, and officially started operations in July 2007 with for divisions, 14 wards and 86 villages. It was formerly a part of Masasi District. The population is about 155,000 of whom 80 percent are farmers who grow food and cash crops. The major food crops are cassavas, maize, millet, while major cash crop is cashew nuts. The fertile land enables residents to have good pastures for grazing animals like cattle, goats and sheep. They also keep chickens and gees.
Bank of Tanzania 2nd Winner
NANE NANE FINANCIAL INSTITUTION
Artwork & Design: KN Mayunga: changetz@yahoo.com
To have your organisation promoted in Kilimo Kwanza, Call: 0787 571308, 0655 571308 0754 571308
Bank of Tanzania has established the Small and Medium Enterprise Credit Guarantee Scheme towards promoting and supporting farmers by creating an enabling environment for expansion and facilitating access to financial resources, thereby accelerating economic growth and job creation. BOT Principal Banking Officer in the Directorate of Financial Markets Credit Guarantee Scheme Department, Fatuma Kimario said the new inititative is inline with the National Policy on SME Development and Poverty Reduction Strategy. Kimario said the scheme is managed by BOT as an agent of the government and the farmers can access the guarantee facility through the participating financing institutions with which BOT has made arrangements. The targeted beneficiaries of the scheme are the farmers and small and medium enterprises engaged in formal business with capital requirements ranging
BoT Governor Benno Ndullu
from Shs5 million up to Shs500. The special scheme guarantees loans that do not exceed Shs500 million with recovery period between 1 to 5 years. BOT (on behalf of government) will share the risk with the PFIs on every guaranteed loan on a pro-rata basis to the extent of 50 percent of the principal amount (The guarantee cover will not include accrued interest irrespective of the tenure of the loan). Several participating Institutions have already signed the Guarantee Framework Agreement and they include Banc ABC Ltd, Akiba Commercial Bank Ltd, Azania Bank Ltd, Bank of Baroda Ltd, Barcklays Bank, CRDB Bank PLC, CF Union Bank, Dar Community Bank, Diamond Trust Bank, Bank Of Africa Bank Tanzania, Exim Bank and FMBE Bank Ltd. Others that have already signed on are International Commercial Bank, National Bank of Commerce, NMB PLC, Stanbic Bank, Standard Charted Bank, Tanzania Investment Bank, Tanzania Postal Bank, Twiga Bancorp, Commercial Bank of Africa Ltd and Saving and Finance Commercial Bank.
Nane Nane 2010 Kilimo Kwanza, Mapinduzi ya Kijani, Uhakika wa Chakula na Kipato.
P.O. Box 2939, Dar es Slaam, Tanzania
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P. O. Box : 912, Arusha, Tanzania. Tel: +255 27 253 92 59, 250 46 79, 250 63 68, Fax: +255 27 254 50 13 Email: sales@minjingumines.com
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By Angel Navuri, Dodoma
SUPPORTING
The Guardian KILIMO KWANZA
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Tuesday 10 August, 2010
COVER STORY
A year since the green revolution of Tanzania was launched, Prime Minister Mizengo Pinda gives an assessment of Kilmo Kwanza to The Guardian’s ANGEL NAVURI QUESTION: Can you make an assessment of what has been achieved under the Kilimo Kwanza initiative so far? ANSWER: In Tanzania, the majorities live in rural areas and are characterized by primary modes of production, basically agriculture. Most agricultural activities are performed with rudimentary and low level of technology leading to low yields and low labour and land productivity. KILIMO KWANZA is a catalyst for implementation of the Agricultural Sector Development Programme – ASDP and accelerates implementation and achievement of Millennium Development Goals targets and objectives with a stronger emphasis for pro – poor growth. It takes a holistic approach for the development of Agricultural Sector which involves all Sectors in the economy. Kilimo Kwanza provides national coordination of resources, planning and accountability for implementation of agricultural transformation and enhances strong Private Sector participation as a key agent towards realization of agricultural goals. Since Kilimo Kwanza was launched, there has been some improvements in the performance of the agricultural Sector such as: (a)The increase in the Agricultural Budgets; the share of budget for agriculture rose to about 7 percent of the annual budget last financial year, which has also led to increased subsidies to farmers from 750,000 last year (2008/09) to 1,500,000 farmers this year (2009/2010). We are targeting at 10 percent for the development of the Sector. (b) To effectively finance the Agricultural sector, the Government has arranged a special window for concessionary lending for agricultural production at the Tanzania Investment Bank, while procedures of establishing an Agricultural Bank are underway. (c) The government has established a Task Force to review Fiscal and Non – fiscal Policies to attract more investors in the Agricultural Sector. (d) Most agricultural equipments have been exempted from taxation, this has increased the private sector participation in the agricultural sector by importing more tractors and other equipment for agriculture production and processing in the Country. The Government decided to champion KILIMO KWANZA after recognizing the importance of the Agriculture Sector in the Country and the need to build on the past efforts, after making an in-depth review of the Agricultural Sector and formulating the Agricultural Sector Development Programme – ASDP, which placed new initiatives with strategies and plans for implementation for Green Revolution. Core features of the ASDP are to Strengthen Public and Private Partnerships across all levels of the Agricultural Sector and implementation of the District Agricultural Development Plans (DADPs) as the comprehensive tool for agricultural development at District level. Our main focus is to emphasize on the transformation of the poor peasantry farming methods into productive agriculture through utilization of improved agricultural technologies, inputs, credits and market access. Our aim is to see our peasants using more of ploughs, power tillers and tractors whenever possible. Q: In 1982, Mwalimu Nyerere said that all ministries should plan in serving Agriculture Sector; does the Fourth Phase Government uphold this position? A: Of course! The Fourth Phase Government holds this position in a sense that it has taken special efforts in promoting agriculture by introducing the ASDP programme. We all know that you cannot speak about agriculture without involving other sectors like education, finance, water, infrastructure or industries. You will need money to finance the agriculture, you cannot isolate it from other Ministries; the ministries are there to complement each other. It has been long since the country had
sufficient food and we just realized that it’s high time we prioritise agriculture by coming up with the concept of Kilimo Kwanza, meaning that much as we need to promote other Sectors, the Agriculture Sector must be given extra attention so that at the end of the day, Tanzanians should not go hungry. Throughout my regional visits, I have been urging both Party and Government leaders to be exemplary by cultivating their own farms according to the principles of crop husbandry (Kanuni za Kilimo Bora). As elaborated earlier, ASDP has placed new initiatives with strategies and plans for implementation to ensure that Tanzanian farmers improve their crop production. The same goes for the livestock keepers and fishermen.
Q: Which Ministries are doing better and which ones are dragging behind on making Agriculture the focus of their planning and activities? A: The whole programme is centrally governed; therefore there is no question of which ministry is ahead and which one is not. If the Ministry of Agriculture is spearheading the principles of crop husbandry, you will still need the Ministry of Infrastructure to ensure that you have passable roads and you will also need the Ministry Energy and Minerals for the supply of power to small and medium factories that will be established to process the farmers’, livestock keepers’ and fishermen’s products. All of them are intertwined and they rely on each other to push the Agriculture Sector. However, we have what we call the Agricultural Sector lead ministries to ensure that our goals are achieved. These include the following:a) The Ministry of Agriculture, Food Security and Cooperatives; b) The Ministry of Water and Irrigation c) The Ministry of Finance and Economic Affairs; d)The Ministry of Livestock Development and Fisheries; e)The Ministry of Industries, Trade and Marketing, and f)The Regional Administration and
Premier Mizengo Pinda Local Government Authorities which fall under the Prime Minister’s Office. Q: As the Leader of Government Business which ministries have you found to have done particularly well in making Agriculture the focus? A: KILIMO KWANZA was a Cabinet decision; therefore all the ministries have a role to play and so far they are doing well in implementing the Kilimo Kwanza. It all depends on how well they have put it according to their plans of actions. Q: What steps will you take to make sure that the ministries continuously focus on this Sector? A: A mechanism for mainstreaming planning of agricultural development in other Sectors has been set so that much attention is paid for Rural Development Strategy (Rural Infrastructure Development). Moreover, we have guidelines that are used when preparing the National Budgets which are controlled by the Medium Term Plan and Budget
Framework. These budgets must be approved by the Cabinet. Therefore, under this system, be assured that all the ministerial budgets will focus on Kilimo Kwanza.
Q: Last financial year Shs40 billion was allocated for irrigation, how well was it used? By the end of the financial year what was where to see in the irrigation sector as a result of the Shs40billion injection? A: Under the Agricultural Sector Development Programme (ASDP), we have local and donors’ funds but that year the Ministry of Agriculture, Food Security and Cooperatives had set aside shs. 17.8/- billion for the National Irrigation Fund; shs. 23/- billion for the District Irrigation Fund which was administered by the PMO-RALG. We also set 13.5/billion for the District Agricultural Development Programmes (DADPs). The funds were used for the rehabilitation of traditional irrigation schemes; making feasibility studies in order to expand the irrigation farming in the regions that have ap-
The Guardian KILIMO KWANZA
Tuesday 10 August, 2010
COVER STORY
One year after the launch of Kilimo Kwanza, Premier spells out landmark achievements plied for the funds; and to construct the water dams to be used for domestic purposes in arid areas. All these funds were geared at increasing the supply of water to the people living in such areas, providing water to their livestock, and assist them in horticultural activities especially seasonal vegetables.
Q: Concerning the power tillers and tractors, how is the progress of reequipping the country with tractors, considering that today we have less than half the tractors (8,000) as opposed to what were there in the seventies (17,000)? A: It is true that the number of tractors kept on decreasing for quite some time now. This is basically contributed by the fact that we no longer operate the large parastatal farms like we used to do. Most of the large farms were owned by the parastatals such as the agricultural products boards like Cotton, Coffee and Tobacco Boards which were using tractors for farming. These Parastatals had budgets allocated for the
importation of tractors for their farm operations. At present there are about 8,000 Tractors and about 1,200 Power Tillers in the country which are being used for Agricultural activities. Currently, the Government has exempted the import taxes on agricultural equipment like tractors and power-tillers. Private companies are importing most of the agricultural equipment needed in Tanzania. The country’s annual requirement for tractors is estimated at about 1,500 and about 1,800 for power tillers. Last year (2008/2009) we imported 472 tractors and 495 power tillers, while this year (2009/2010) we are expecting to import 1,859 power tillers and 558 tractors. We also have an agreement on Conventional Loan to get agricultural equipment from India which will eventually increase the number of tractors in the country. According to the Ministry of Agriculture, Food Security and Cooperatives budget, in 2009/2010 the Ministry promoted the use of farm implements by supporting the private sector to
import more farm implements in order to make them easily available and accessible to farmers. Between 2005/2006 and 2009/2010, a total of 2,364 tractors and 3,214 power-tillers were imported and sold by private companies whereas in 2009/2010 alone, a total of 627 tractors and 2,219 power-tillers were imported. The Ministry also prepared and distributed mechanical specifications for the said farm implements to 132 District Councils. These specifications will be used to determine the criteria for purchasing powertillers with the capacity of 12-15 HP, tractors (35-90HP). The same applied for ploughs, harrows, planters and trailers. Others were the specifications for heavy duty tractors (100-150 HP), cassava processing machines, oil extraction machines, groundnuts peeling machines, maize hullers, sorghum peeling machines, harvesters and pesticides sprayers. Q: There was the situation in Rukwa where farmers had produced more maize (some are rotting) and the Ministry of Agriculture had banned the export of the product. Does the Government have any plans in buying the maize and the excess rice in
“The country must move away from producing what it does not consume and consuming what it does not produce” TNBC says
Mbeya? What about the rotting apples in Makete? A: It is not true that there are crops rotting in Rukwa region although farmers produced more maize and the National Food Reserve Agency (NFRA) has been buying them for storage purposes. The Ministry of Agriculture temporarily banned the export of food due to the fact that there was a shortage of cereals. For instance, last season, 2008/2009 we produced only 5.265 million tons of cereals but our estimated requirement for 2009/2010 was about 6.578 million tons representing a shortage of about 1.313 million tons of cereals. Due to this shortage, we had to issue a temporally ban on exports of food crops. When the situation returns to normal, we lift the ban on food exports. Again, we are not sure of the rotting apples in Makete, because most of the farmers look for their own markets and are now planning to build canning/processing plants. Q: In the new financial year what actions do we expect to enhance Kilimo? A: In the new financial year, we expect changes as we have started implementing
the Kilimo Kwanza concept by involving the private sector to heavily invest in agriculture. The Government budget has been increased in the Agriculture Ministries to help the transformation from the subsistence farming to commercial farming. The aim is to bring the Green Revolution that would increase production and productivity in the Agriculture Sector, among the strategies and step being taken to enhance commercial farming includes the following: - To rehabilitate and build more Irrigation Schemes and develop more Water Schemes for increased Irrigation Farming; - Increase the use of appropriate technology for Agricultural production with particular focus on Research for increased crop production, livestock productivity, fisheries and extension services. With research, we can develop high yielding, disease free and pest resistant varieties and breeds of seeds, which can also better adapt to the natural conditions. - Efficient Utilization of Rangelands and Empowerment of Livestock Institutions for improved Livestock productivity (Veterinary Centres, Water Dams/Wells, Cattle Dips and Livestock Markets); - Increasing the availability of Agriculture Inputs, currently, we are subsidizing some Agricultural Inputs (Fertilizers, Chemicals, Seeds and Seedlings) to enhance food production; - Create a favourable environment for the Private Sector to participate in Agricultural Production and Processing, the Government at present is establishing an Agricultural Development Bank for credit availability for farming activities; - Enhance the mechanized farming by using power tillers and tractors instead cultivating using the hand hoes. This will help farmers to plant timely and reduce the time used on other farm operations; -Establishment of Agro – Processing Industries for value addition to farm produces to increase farmers’ incomes and marketing opportunities.
It’s a state of mind
By Angel Navuri, Dodoma
Heavy duty agricultural machinery was common on Tanzania’s parastatal farms in the 70s. Today, the country has less than half of the tractors it had thirty years ago, although the population to be fed has more than doubled.
A year since the launch of the country’s Green Revolution, Tanzania National Business Council (TNBC) say they haven’t faced any obstacles against the success of Kilimo Kwanza but that changing the mindset to support its implementation at all levels remains the main challenge. In an interview with this paper in Dodoma last week, TNBC Executive Secretary Dustan Mrutu pointed to the general acceptance at local and national level of Kilimo Kwanza in addressing poverty and wealth creation as the biggest success story of the initiative so far. Speaking on the necessity for a Tanzanian Vision of Kilimo Kwanza, Mrutu said “Notwithstanding the historic setbacks in the nation’s agricultural efforts, or perhaps because of it, there must be a defined trajectory for the transformation of the country’s agriculture, which will be commonly understood and shared by all stakeholders, and would be capable of generating the impetus for high and sustained growth a rate of the economy as a whole for many years to come. The way forward for Tanzania is a national vision for a green revolution.” The TNBC chief said there are a number of compelling and fundamental conditions, which makes it necessary for Tanzania to adopt the strategy of Kilimo Kwanza. “The totality of the national devel-
TNBC Executive Director, Dunstan Mrutu
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President Jakaya Kikwete testing a newly imported power tiller last year
opment effort should be directed on priority basis, to the implementation of Tanzania’s green revolution as an ultimate vehicle for the socio economic transformation of the country.” He spelt out several key factors necessitating Kilimo Kwanza for Tanzania, starting with the fact that the socio economic future of Tanzania depends on the future of its agriculture. “No country in the world ever achieved any significant measure of the socio economic and structural transformation without first achieving the modernization of its agriculture and no country ever succeed in lifting itself from poverty without raising productivity in its agricultural sector,” he stated. National food security is another crucial for Tanzania’s long term peace, stability and development. Currently the country’s agriculture provides more than 95 percent of the food consumed. In to achieve adequate food security, the country needs to produce in excess of 125 percent of its food requirements, apart from the need to export for foreign exchange earnings. This level of production has not been achieved and continues to deny the country necessary condition for food security. Better living standards - “MAISHA BORA KWA KILA MTANZANIA” – through poverty reduction is the greatest challenge Tanzania is facing. With 80 percent of its people deriving their livelihood from agriculture, it is only increased agricultural productivity that would effectively solve the problem of poverty in the country. TNBC site the example of China’s Green Revolution which raised per capita average income of farmers in China by 26 times. Aside from overall poverty situation in the country, poverty in agriculture remains of major concern. Trends show that the growth in agriculture GDP has been slower than overall GDP growth. According to
TNBC data, cumulative GDP growth between 2001 and 2006 was 53 percent while the corresponding figure for agriculture was 33 percent, while some data shows that poverty has declined from 36 percent in 2001 to 21 percent in 2007. This implies that accounting for the differential rates of growth is likely to result in less poverty reduction for the population involved in agriculture than that indicated in the national average above. On land and other resources for Tanzania’s green revolution, TNBC notes that total land is 95.5 million hectares, within which arable land constitutes 44.0 million hectares, rangeland 50.0 million hectares, land under livestock 24.0 million hectares and Tsetse invested areas 26.0 million hectares. Cultivated land in the whole country is 10.1 million hectares, while the area suitable for irrigation is 29.4 million hectares. But the area under irrigation is only 0.29 million hectares. High agricultural potential land stands at 2.3 million hectares, medium potential 4.8 million hectares and that of low potential is 22.3 million hectares. Land under medium and large-scale farming is still a mere 1.5 million hectares. Livestock population stands at 18.5 million cattle; 13.1 million goats; 1.2 million pigs and 30 million poultry birds. In view of the bleak statistics, the TNBC officials conclude that Tanzania is faced with a fundamental decision that it must make for the future of its agriculture, which will essentially determine the longterm prospects of its socio economic transformation. Quoting the now familiar adage, he said, “The country must move away from producing what it does not consume and consuming what it does not produce, and make a substantial investment in the agricultural sector to achieve transformation.”
The Guardian KILIMO KWANZA
PERSPECTIVE
T has been a special week in which we observed both the annual farmer’s week and marked one year of the rallying call ‘Kilimo Kwanza.” Find it no coincidence that Nane nane day this year fell on a Sunday. As we reflect on successes and challenges ahead, let us also remind ourselves of the central role of agriculture in the cosmos. Contained in the book of Genesis, the Biblical creation account places agriculture at the foundations of the universe. Verse 23 of Genesis says that after sin and corruption entered the world, the Lord God sent Adam out of the Garden of Eden to till the ground from which he was taken. This implies that agriculture is the key to survival of our species. Why is it then that the farmer celebration fails to attract the media frenzy and camaraderie that Saba saba does? Are we recurring victims of the cunning serpent? In Genesis 2:8, ‘The Lord planted a garden eastward in Eden, and there he put the man whom He had formed.” God therefore is the original farmer. He put man in the garden to tend for it and to learn in the process. In His garden, God made “every tree grow that is pleasant to the sight and good for food.” He was a master farmer who planted both food crops and plants of aesthetic value. This is a sobering reminder for us to dedicate similar effort in promoting floriculture as we do in increasing fodder and groceries. Overlooking one form of agriculture in favour of the other is fraught to fail because it is against the original order. A green revolution without harnessing of water resources is also impossible. The days mentioned in Genesis 2:5 when ‘a mist went up from the earth and watered the whole face of the ground” will never return. The Creator Himself knew this and He
made a river to go out of Eden to water the garden (Genesis 2:10). God wanted us to understand that dependency on rainfall alone is not enough to sustain gardens. Although often complicated and costly, irrigation is necessary in increasing crop seasons, quality and yields. These are the days when the ground brings forth the thistles and thorns promised in Genesis 2:18.
However our attempts to break free from the yoke of the original curse through genetic modification, inorganic fertilizers and pesticides may cause more harm than good. Our quick fix solutions to food security should not overlook sustainable models utilized by The Creator. The legendary “tree of life” and “the tree of knowledge of good and evil” men-
tioned in Genesis 2:17 were planted in the Garden of Eden for a purpose. These two trees created a balance of good and evil within the garden. Whatever energy and resources the tree of knowledge of good and evil took out of the ground was replenished by the tree of life. Eating of the tree of knowledge of good and evil brought sin and death, but taking
and eating of the tree of life could lead to eternal life. Modern farming methods should imitate and strive to maintain this delicate equilibrium. Agro-forestry, crop rotation and other natural sustainable agricultural methods can help achieve a balance that reduces dependency on inorganic fertilizers and pesticides. Genesis 3:6 confirms the positive results of organic farm-
HARVESTING
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Harvest season is also time for divorce in Handeni ing. Because of the organic farming methods employed by God in the Garden of Eden, even the forbidden fruit became pleasant to the eyes and desirable to make one wise. Mankind could not resist a fatal bite of this fruit, with grave consequences. “Because you have heeded the voice of your wife, and have eaten from the tree which I commanded you, saying “You shall not eat of it: “Cursed is the ground for your sake; In toil you shall eat of it, All the days of your life.” These somber words by The Almighty ushered in the era of Kilimo Kwanza and our unending search for food security. It is therefore a sin against humanity for farmers to break their backs only to lose most of their mature harvests at the farm, during transportation and in storage. Because of mankind’s indiscriminate fruit eating habits, God also turned the cunning snake into a pest that bruises human feet. We need to bruise the head of pests that can stop us from fulfilling our goals. By clothing man in tunics of skin (Genesis 3:2) our Maker also reminds us to channel some of our efforts into animal husbandry. Through hard work and dedicated projects like Kilimo Kwanza, perhaps one day we may find our way past the cherubim and flaming sword guarding the way to self sufficiency. Until then, let us continue to eat bread in the sweat of our faces till we return to the ground from which we were taken. Let us be fruitful and multiply; fill the earth and subdue it; have dominion over the fish of the sea, over the birds of the air and over every living thing that moves on the earth. The flailing, despairing and non-believers ought to remember that the key to eternal life is found in the tree of life mentioned in Genesis 3:24. There is no escaping in this. May the Lord bless the works of our hands, Amen.
15 to 20 sacks per hectare. Handeni District has population of 300,000 and covers an area of 7,000 sq km. Of these, 3600 hectares are earmarked for irrigation using Pangani River, but only 50 hectors are being irrigated to date. The main constraint is the prohibitive costs of the irrigation equipment. Through the World Bank funded Water Sector Development Programme, Tanga
N By Angel Navuri
EW cases of divorce and polygamy in Handeni District often peak during the harvest season, the area District Commissioner (DC) Captain Seif Mpenembwe has revealed. Many men in the district use cash received from sale of produce to pursue new romance. Salima Hassan, a mother of 6 and whose husband married two more wives after two harvests blamed male chauvinism for this. In a recent interview with this paper, the DC also denied recent media reports that his district is facing hunger. “Last
Trunk Main (HTM) with funding from the GTZ, several village water supply projects, the construction of water reservoirs (dams), troughs, boreholes and shallow wells. To boost food production, the government has provided 12 small tractors and power tillers, fertilizer subsidies, quality seeds, agricultural extension officers and pilot farms to guide farmers on proper production.
Farmers are also being encouraged to break dependency on maize and diversify production to include wheat, cassava, sunflower, mangoes, oranges and animal husbandry. A farmer, Shabani Saidi, said that although market for produce is not a problem, many farmers often sell all their harvests to meet other needs like school fees for their children.
year overall production was low, but the central government ensured that there is enough food for everyone.” The region produced 50,000 tonnes of food, short of the production target of 100,000 tonnes; and lower than the district’s consumption of 75,000 tonnes per annum. The production target this year is 200,000 tonnes. He blamed the deficit on farmers who sell green maize instead of waiting for it to mature. Traders buy green cobs at the farms for TSH 50 per cob and TSH 100 per cob if the farmers take the produce to the market. Once roasted or boiled, the cobs retail for TSH 200 per cob. Poor planting habits also contribute to poor yields. Maize planted in rows with good spacing yields 20 to 30 sacks per hectare. Randomly planted farms yield only
Hoticulture has local and foreign market potential
CONSOLIDATED HOLDING CORPORATION (CHC)
Region will soon receive TSH 9.2 billion for rehabilitation of the outdated water infrastructure and development of new sources. Recently the area received TSH 4.2 billion for consultancy and feasibility studies to identify new sources. Water coverage in the area currently stands at 64%. Projects being undertaken to increase this include rehabilitation of the Handeni
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By Dar Prodigal Son
Kilimo Kwanza started in the Garden of Eden - Humourist
The Guardian KILIMO KWANZA
Tuesday 10 August, 2010
HORTICULTURAL DEVELOPMENT COUNCIL OF TANZANIA (HODECT)
Nane Nane 2010 Kilimo Kwanza, Mapinduzi ya Kijani, Uhakika wa Chakula na Kipato.
Nane Nane 2010: Kilimo Kwanza, Mapinduzi ya Kijani, Uhakika wa Chakula na Kipato.
Consolidated Holding Corporation (formerly NBC Holding Corporation) was established on 1st October 1997, by the Parliament through the enactment of the National Bank of Commerce - (Re-organization and Vesting of Assets and Liabilities Act Cap. 404) as amended. MAIN FUNCTIONS (i)
(ii)
Managing government investment in NBC Ltd (30% share);
Loan recovery in respect of debtors of CHC, ex-LART, ex-ATHCO, ex-SIMU 2000 LTD and ex-PSRC;
(iii) Sale of landed properties;
(iv) Divestiture of parastatal organization; (v)
Liquidation of Public Enterprises (PE’s);
By Angel Navuri, Dodoma
(vi) Settlement of matters arising from divestiture/liquidation of public enterprises; (vii) Settlement of creditors;
(ix) Conducting Monitoring and evaluation of privatised entities. DIRECTOR GENERAL, CONSOLIDATED HOLDING CORPORATION, HEAD OFFICE 220/50 MIRAMBO STREET P.O BOX 21195, DAR ES SALAAM TELEPHONE: 255 (022) 2117988/9 FAX: 255 (022) 2113065 E-MAIL: info@chc.co.tz WEBSITE: www.chc.co.tz
WE SERVE; WE CARE.
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(viii) Handling of Litigation and claims; and
The Horticultural Development Council of Tanzania (HODECT) has said that insufficient or non – existence of infrastructure is a serious bottleneck across the country for horticulture, resulting in debilitatingly high transport costs for sensitive business. HODECT Executive Director Jacqueline Laisser observes that good infrastructure would otherwise connect farms to their suppliers and buyers, enables the use of modern production and distribution technology, and reduce the effects or distance between production and sale. “Infrastructure investment are needed at the district and national level by way of roads, airports, seaports power and telecommunication, construction and timely completion of trunk roads to enable horticulture access key markets at less costs,” she explained last week.
The HODET boss added that feeder roads are critical to ensuring that produce makes it to the market on time and management services at air and seaports need to be equipped with the appropriate systems and equipment that is suitable for horticulture. Substantial growth opportunities exists for horticulture business across domestic, regional and international markets, for both traditional and new products. Statistics indicate that the global annual growth average to have been13percent from the year 2000 to 2008, while for horticulture sector it has been over 100 %. Spices and fruits grew fastest. Information at HODET categorises East African including Tanzania as an idle, untapped market for horticulture products. Tanzania alone represents a substantial market, but Tanzanians are not informed of the health benefits of consuming horticultural products.
“If each Tanzanian consumed just ¼ of the international recommended daily serving of fruits and vegetables, domestic demand would by far exceed the current supply. While the domestic market is not able to pay prices similar to those international markets, many horticultural products can be offered profitably across East Africa,” explained the Director. “All actors in the industry, not just exporters, must be exposed to the market needs through updated market intelligence and relationships created, and eventually success will depend on how the industry is able to add value to the products over time,” she noted Export markets development of agro processed horticultural products critically depends on processing and packaging industries to develop opportunities for further value addition. Already, significant export opportunities exist for traditional processed fruits and vegetables.
The apex body of Horticultural Stakeholder in Tanzania P.O.Box 11074, Arusha,Tanzania. Cell: +255 789 222 344; Fax: +255 27254 4568 Email: info@hodect.org, hodect@hodect.org; website:www.hodect.org
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Tuesday 10 August, 2010
The Guardian KILIMO KWANZA
WHAT OTHERS DO
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Tuesday 10 August, 2010
Chillies arrive at doomsday bank
By Mark Kinver
cience and environment reporter, BBC News Chillies cultivated by Native Americans are among those entering the vault Seeds from some of North America's hottest food crops have arrived on the Arctic Archipelago of Svalbard to be stored in a "doomsday vault". The consignment of chilli seeds was delivered to the frozen outpost by a delegation of seven US senators. Built deep inside a mountain, the vault is designed protect the world's main food plants from future disasters. Since opening in 2008, it has stored seeds from more than half a million of the planet's crops. "The chillies really are an interesting story," said Cary Fowler, executive director of the Global Crop Diversity Trust, which funds the operation and management of the seed vault. Continue reading the main story The seed vault in Svalbard will be the safety deposit box that ensures that we can keep that food supply intact Benjamin Cardin, Democrat Senator for Maryland "They are traditional varieties; they have colourful names and histories," he told BBC News. "A number of the varieties were provided by a fantastic group of nine US government organisations called Native Seed Search who work with Native American communities. "These (chilli plant) varieties have been safeguarded for a long time and long may it continue," Dr Fowler added "But that - of course - depends on an unbroken chain going into the future and you can never really count on such a thing." In from the cold Among the varieties to be deposited in the vault was Wenk's Yellow Hots, a pepper that starts out yellow and hot before losing some of its potency and turning red. The remote, frozen landscape provides an ideal backdrop for the vault
Another specimen was the "unpredictable" San Juan Tsile, described as a pepper with a heat that has been described as "ranging as anything from mild to medium to hot". This particular variety is still cultivated by elder farmers in a Native American community in New Mexico. The group delivering the seeds was led by Benjamin Cardin, Democrat Senator for Maryland, who said the all parts of the world were interdependent when it came to crop diversity. "As we manage the impact of climate change around the world, the seed vault in Svalbard will be the safety deposit box that ensures that we can keep that food supply intact," he said. The seeds from the chilli plants, along with other samples such as soy, melon and sorghum, were provided by the US Department of Agriculture's (USDA)
National Plant Germplasm, based in Colorado. "[We] have a strong commitment to sharing our crop diversity to ensure that Svalbard is well positioned to protect the world's genetic diversity," explained Edward Knipling, administrator for the USDA's Agricultural Research Service (ARS). The seeds are preserved at a temperature of -18C (-0.4F) in two secure store rooms located 130m (426ft) inside a mountain. The vault has been designed to store duplicates of seeds from collections from all around the world. If the nation's seeds are lost as a result of a natural disaster, such as widespread flooding, the seed collections could be re-established using the specimens stored in the Arctic. The £5m ($7m) facility took 12 months to build and opened in February 2008.
Chinese Agriculture Bank raises $19bn Early last month, the Agricultural Bank of China embraced a capitalist’s dream: it went public. The Times reported that in a move that would have been unimaginable in Chairman Mao’s time, the Chinese bank sold $19.2 billion of stock in Hong Kong and Shanghai. The offering was expected to grow to $22.1 billion — the largest in history. The Agricultural Bank was the latest in a long series of Chinese companies to go public since China reopened its stock markets 20 years ago. But its sale, which defied the running turmoil in the world’s financial markets, cemented China’s position as this year’s leader in initial public offerings and, by extension, underscored its economic and financial might. The sale valued the Agricultural Bank at about $128 billion — more than Citigroup or Goldman Sachs. Mao’s successor, Deng Xiaoping, once proclaimed, “To get rich is glorious.” But whether the Agricultural Bank will make its new shareholders rich is far from certain. While the bank is China’s biggest lender, it has long been a weak sister financially. Its current incarnation, created in 1979, has 320 million retail customers, 2.7 million corporate clients, nearly 24,000 branches and $1 trillion in deposits. But the bank nevertheless has struggled to translate that gargantuan franchise into prosperity. In 1998, the Beijing government spent 270 billion renminbi, then worth about $33 billion, to recapitalize the nation’s four big banks. It then bought up 346 billion renminbi ($50.9 billion) in worthless loans from the Agricultural Bank. The bailout did not work. In 2006, auditors said they had found fraudulent deals at the Agricultural Bank totaling 60.3 billion renminbi ($7.5 billion). In 2008, with nonperforming loans composing almost a quarter of the bank’s assets,
the government pumped $19 billion more into Agricultural Bank, then assumed another 800 billion renminbi ($120 billion) in bad loans. The bank now says its nonperforming loans total about 2.9 percent of assets, still the largest officially reported share among major Chinese banks. Many analysts say the actual figure is far higher. The bank’s shares were sold simultaneously in Hong Kong and Shanghai. In Hong Kong, the stock was priced at about 3.20 Hong Kong dollars each, in the middle of the expected range. In Shanghai, the Class A shares — which only Chinese nationals can buy — were priced at 2.68 renminbi, the high end of expectations. The shares are expected to start trading in mid-July. The sale had been widely seen as a measure of confidence in China’s economic prospects, and was once believed capable of fetching $30 billion. But the reception was dimmed by a rout in the Shanghai stock market, growing worries about a slowdown in China’s economy and concerns about the bank’s assets and growth prospects. For now, the honor of the largest IPO remains with another state-controlled bank here, the Industrial and Commercial Bank of China, which raised $21.9 billion in October 2006. Diminished or not, Tuesday’s sale continued a string of IPOs by companies in emerging markets, which have underscored both the economic weakness of rich nations and the rising economic clout of developing countries. Virtually all the biggest IPOs of 2010 have been outside the United States and Western Europe. It also continues China’s winning streak in global markets. More than onethird of new listings this year have come from Chinese companies, up from onequarter in 2009. The Agricultural Bank officials pledged to adhere to “prudent credit control” and said that the bank’s unique
franchise — a lock on the 800 million members of farm families, as well as a strong position in industrial areas — would help it prosper from China’s ruralto-urban migration, as well as the government’s plans to stimulate consumption in rural areas. Most other banks are primarily based in urban areas. Skeptics say the bank’s customer service remains abysmal, and its government mandate to serve farms and peasants dooms it to the low-growth ghettos of the Chinese economy. Bank officials insist, however, that only about one-third of all business is rural-based. The 2008 cleanup was aimed at preparing the Agricultural Bank for this month’s IPO, which effectively completes an arduous restructuring of China’s four major state-controlled banks that has required $650 billion in bad-loan bailouts and top-to-bottom management overhauls. The three other banks — the China Construction Bank, the Industrial and Commercial Bank and the Bank of China — have already gone public. The government is betting that the shored-up balance sheets, market discipline and the expertise of foreign stakeholders — Bank of America is invested in the China Construction Bank, and Standard Chartered is taking a small stake in the Agricultural Bank — will help build Chinese banks into global competitors. But not everyone is convinced that the banks’ root problems have been addressed. The four banks slid toward insolvency in the 1990s by making unwise loans on orders of government officials. But even after world-beating public offerings, all four banks remain firmly under Beijing’s control. And the global economic crisis, during which Chinese banks lent trillions of renminbi on government orders, offers compelling evidence that state influence over banks remains strong.
PASS passes Shs 66 billion to farmers
PRIVATE AGRICULTURAL SECTOR SUPPORT Nane Nane 2010: Kilimo Kwanza, Mapinduzi ya Kijani, Uhakika wa Chakula na Kipato.
PASS TRUST and BANKS working together to develop Commercial Agriculture in Tanzania
Tanzania has over 60 million hectares of rangeland with a carrying capacity of 20 million animal units. Currently there are about 16 million animal units countrywide.
PASS TRUST and BANKS are working together to grow Agribusiness in Tanzania by helping YOU get a loan. If you have a Viable Investment Idea and Collateral, PASS TRUST will help YOU make a Business Plan and assist you get a loan from the Bank.
By Angel Navuri
Private Agricultural Sector Support Uhuru Street, the NMB Building, 1St Floor P.O. Box 146, Morogoro,Tanzania Telephone: 023-3752/3758/3765 • e-mail: pass@pass.ac.tz • Website: www.pass.ac.tz
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“PASS YOUR WAY TO SUCCESS”
The Private Agricultural Sector Support trust has spent over Shs66 billion to support 6,500 farmers all over the country to get loans for different types of inputs. PASS managing Director Iddy Lujina said farmers have benefitted through acquisition of a range of inputs including irrigation equipment, tractors, agro- processing machinery and trucks. But equally valuable to the farmers who are facilitated to financial service is the boosting of their experience and capabilities in dealing with modern agricultural finance. Clients who are funded through PASS
are assisted in preparing solid, bankable investment project proposals and also benefitting through the credit grantee schemes operated with commercial banks. “Currently PASS assists customers to get loans through six banks, CRDB, Exim, TIB, FBME, NMB and ABC, but plans are advanced to collaborate with additional banks,” said Lujina He explained that PASS has already documented its relevance and impact, impressive productivity gains have been achieved in supported projects in various subsector including coffee, tea, paddy, maize, suflower, sugarcane and livestock. Support has at the same time helped create many thousands of new jobs in the agricultural sector. About 50 percent of the benefi-
ciaries are women. PASS also boasts an excellent loan repayment rate of 98 percent by its clients while the collaborating banks are also gradually getting more proficient in financing agricultural investments, at the same time there is a growing unmet demand for PASS services. Supported by Danida, The PASS outreach will be expanded by the opening of four new zonal offices two of which have already been opened in Mbeya and Dar es Salaam in 2009. The Mwanza office will be next. The allocated credit fund guarantee $25 million will enable PASS to mobilize additional credit in agricultural sector to the tune of about 100bilion in the next four years.