Summary
·
The
government plans to take decisive action over abandoned horticulture estates in
Arusha Region as part of wider efforts to boost the multi-million-dollar
industry
Arusha. Finally, the government has said it will act decisively on the
abandoned horticulture estates in Arusha in its new bit to boost the multi-million dollar industry.According to the Bank of Tanzania (BoT), the country earned $289.6
million from horticulture exports last year.
This was, however, a drop from $378.6 million that was exported in
the previous year (2021).
And yesterday, the government said two of the commercial farms
will be retaken by the state while the other five will have to wait as they
have pending cases in court.
The state will ensure that terminal benefits amounting to billions
of shillings for hundreds of workers forced into redundancy is paid.
The minister for Agriculture Hussein Bashe said the government has
decided to intervene in order to get the farms back in production.
He revealed this at Usa River township, the heart of horticultural
production along the Arusha-Moshi highway, yesterday when responding to
concerns raised on the ruined farms.
“I want to assure you; the government has not failed to address uncertainties
regarding the closed farms,” he told hundreds of Arumeru residents, some of
them jobless after the farms were abandoned.
They had turned up at Usa River township where President Samia
Suluhu Hassan briefly stopped to hear their grievances.
The minister admitted that much concern was with the 209 acre
Kiliflora estate which was once leading in the production of exotic flowers for
export as the name suggests.
He said the estate which, according to him, was a partnership
between a local and foreign investor was one of the beneficiaries of a bank
loan.
“The loan was extended by TIB Bank but had allegedly not been
accounted for or was not channeled for the intended use.
“Now the farm will be retaken by the government,” he stated,
noting that the ministry had reached out to the Arusha regional commissioner’s
office on the matter.
He added that the process of settling Sh3.4 billion being the
terminal benefits of hundreds of former employees at the farm.
“Former workers will be paid very soon. In fact, this will be
resolved within a month,” he pointed out.
The farm, he further said, will be retaken by the ministry of
Agriculture which will, in turn, hand over to new investors.
Kiliflora was one of the oldest flower farms in the country and
used to generate $6.4 million annually for exports at its peak.
A recent visit by The Citizen to the site was deplorable as the
high tech irrigation networks and other machinery have all broken down.
Kiliflora is a brand name for two estates, one of them being
Kiliflora Usa River, a few kilometres from where President Hasssan made a
stopover.
The other is Kiliflora Nduruma, 94 acre farm, much closer to
Arusha city but also in a sorry state with dilapidated abandoned structures.
Mr Bashe did not mention the rest of the abandoned estates by name
but hinted that their fate would largely depend on the decision of the court.
He insisted, however, that the government was keen to see the
estates continuing with horticultural farming.
“Horticulture crops earn the economy more per unit area than other
export or traditional crops,” he explained.
One of the ex-horticultural farms, Tanzania Plantation had been
earmarked for sisal cultivation by its new investor.
However, the minister stressed that preference should be given to
new investors in horticulture as Arusha has comparative advantage in the sub
sector.
For the past two decades, the horticulture sub-sector has
registered a faster growth averaging 10 percent than any other in agriculture.
From a relatively new sub sector in the late 1990s, it has grown
to a robust industry accounting for 30 percent of agricultural GDP.
Although horticulture was impacted by Covid-19 pandemic like other
sectors, it was the closure of farms in Arusha which added salt to injury.
In less than five years - even before the outbreak of the
pandemic- decaying machinery, tonnes of debris and dilapidated structures had
become the hallmark of the once evergreen farms.
Kiliflora Usa River, Kiliflora Nduruma and Arusha Blooms alone are
reported to have accumulated bank loans amounting to Sh29.8 billion not paid
back.
Industry players intimated to The Citizen recently that the
closure of three and other farms deprived the economy of $20 million in expert
revenue per year.
The abandoned horticulture estates in Arusha have been raised
several times by the local politicians, many saying it has led to unemployment
and the declining economy of the region.
The first salvo yesterday was fired by the Special Seats MP for
Arusha Zainabu Swai who said the closure has rendered over 500 workers jobless.
She implored President Hassan to intervene in the matter since
“horticulture farms are important for the Arusha economy”.
Her concerns were echoed by the regional CCM chairman Zelothe
Stephen who was much agitated by failure to settle the terminal benefits of
hundreds of workers laid off.
Arusha regional commissioner John Mongela said the land disputes
that are common in Arusha have been compounded by closure of the horticulture
estates.
President Hassan did not respond directly to the closed farms but
told hundreds of citizens that her administration would address the issue.
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