ARUSHA: THE horticultural industry has posted a staggering 44 per cent growth in exports value for the year 2023-courtesy of the sixth phase government under President Samia Suluhu Hassan’s proactive policies.
The industry, which faced significant challenges during the onset of the Covid-19 pandemic, has rallied to achieve a remarkable recovery, with exports surging to an impressive 418 million US dollars, up from 290 million US dollars in 2022.
Bank of Tanzania’s data asserts that the horticultural industry, one of the key foreign currency earners is on recovery path after the Covid-19 pandemic that brought a 780 million US dollars sub-sector to its knees.
Fresh figures from the Ministry of Agriculture demonstrate that avocado exports have surged from 17.711 metric tonnes valued at 51 million US dollars in 2021 to 26,826 metric tonnes in 2023 worth 77 million US dollars, thanks to President Samia’s initiatives to unlock global markets for local-grown butter fruits.
Tanzania Horticultural Association (TAHA) Chief Executive Officer (CEO), Dr Jacqueline Mkindi said the incredible growth can be attributed to the visionary leadership of the sixth phase government under President Dr Samia, whose dedication to creating a conducive environment and efforts to unleash global markets have paved the way for the nation’s avocado industry to soar to unprecedented heights.
A case study was President Samia’s state visits to China, India, United Arab Emirates (UAE), South Africa and of late, the Nordic countries for Tanzanian-grown avocado to open new markets for the green-gold, as the country seeks to boost local farmers’ net returns from the butter fruit.
“With a strategic and forward-thinking approach, President Samia’s diplomatic virtues has propelled avocado exports to new heights, ushering in a wave of prosperity for growers, exporters and the broader horticulture community” said TAHA CEO, Dr Mkindi.
Following the recent state visit by President Samia, Tanzania is likely to secure a lucrative avocado market in Indonesia, a promising economic powerhouse with a 279 million population.
Indonesia depends greatly on avocado imports to feed its ever-growing middle-class population, with official statistics indicating that imports of the crop in Indonesia were worth 501,530 US dollars in 2021.
The sharpest climb was from 2017 to 2018, when the import value surged from about152,000 US dollars to around 668,000 US dollars per annum.
“With Tanzania’s significant potential for avocado production and a strong governmental commitment to exploring and accessing international markets, the country is poised to emerge as a dominant player in horticulture export” Dr Mkindi explained.
Additionally, Dr Mkindi said the president’s proactive approach to seeking international market opportunities and facilitating trade agreements demonstrates a promising trajectory for Tanzania’s horticultural industry.
“As the nation continues to harness its resources and governmental support, it holds the promise of becoming a major exporter of avocados, contributing significantly to the country’s economic growth and global agricultural influence” TAHA CEO said.
He noted that Dr Samia carried out a series of strategic policy reforms to unleash the full potential of the industry for generating employment opportunities and wealth, particularly among youth and women.
Dr Mkindi expresses her earnest appreciation to the sixth phase regime under President Dr Samia for granting exemptions on cold rooms, a move that has notably amplified the storage capacity of horticultural crops per square meter.
To be precise, Dr Mkindi extended gratitude to the government led by President Dr Samia for its commendable initiative in providing generous tax relief on sorting, grading and packing technology for fruits and vegetables.
This strategic support, the TAHA CEO said, has effectively propelled the packing capacity by over tenfold per day, thereby bolstering the productivity of the sub-sector and ensuring the preservation of produce at an unprecedented rate.
“The combined impact of these initiatives not only augments storage capabilities but also lays a robust foundation for the sustained growth of the horticultural industry, positioning it as a key player in driving economic development and ensuring food security” Dr Mkindi noted.
President Samia exempted customs and VAT on imported agricultural implements and technologies applied in the sector, ranging from tractors to irrigation equipment and parts. Equally, VAT exempted are agricultural inputs, including seeds, seedlings, cuttings, fertilisers, pesticides, insecticides, fungicides, plant growth regulators and biological agents.
Packaging materials for agricultural seeds were granted one-year duty remission at the rate of 0 per cent, up from 25 per cent, including raw materials for manufacturing corrugated boxes for exporting horticultural products.
Packaging materials for export products are also exempted from import duty.
Dr Mkindi said President Samia encourages partnerships between government agencies, research institutions and private enterprises and that she significantly invests in research and development within the industry to acquire high-yield, disease-resistant crops and elevate overall productivity of Tanzanian farmers.
With Dr Samia at the helm, Tanzania has witnessed a paradigm shift towards environmentally friendly farming techniques, including organic farming and water-conservation initiatives, to ensure the longevity of the horticulture and position the country as a global leader in responsible agriculture.
Another President Samia’s hallmark, Dr Mkindi said, is empowering smallholder farmers through targeted financial support, training programmes and access to modern agricultural technologies in a bid to increase their yields and participate in the larger economic landscape.
She said that in complimenting the government efforts, TAHA through the 24 million US dollars USAID supported Tuhifadhi Chakula Project are working towards addressing post-harvest loss as part of the broad strategy to maximize production and return.
The launch of the Building a Better Tomorrow Youth Initiative for Agribusiness, a beacon of hope for young Tanzanians aimed at increasing employment by one million, echoes Dr Samia’s commitment to empower the youth.
“By engaging the next generation in sustainable agricultural practices, President Samia is sowing seeds of prosperity for years to come,” Dr Mkindi says.
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