Tanzania implements tax exemption strategy to minimize post-harvest losses

TANZANIA – The Tanzanian government, through its Ministry of Agriculture, has announced a new tax exemption strategy aimed at reducing post-harvest losses in horticultural crops.

This initiative is part of the broader Feed the Future Tanzania, Tuhifadhi Chakula project, a collaborative effort funded by the U.S. Agency for International Development (USAID) and led by the Tanzania Horticultural Association (TAHA).

During the launch of a two-day exhibition on post-harvest management at the Arusha Declaration Museum, Mr. Gerald Mweli, the Permanent Secretary in the Ministry of Agriculture, outlined the government’s commitment to the project, which has a budget of Tsh50 billion (approximately USD 18.3 million).

The strategy includes providing import duty exemptions on essential equipment and technologies.

“We are looking at offering farmers technologies at low costs so they can enhance their productivity and manage post-harvest losses through value addition approaches and timely sales,” said Mweli.

He emphasized the government’s goal of reducing post-harvest losses in horticulture from 30-40% to 15% and in grains from 13% to 7% by 2028.

The current absence of modern technology has led to substantial post-harvest losses and increased vulnerability to pests.

Mweli illustrated this point by discussing a farmer with 10 acres of sunflower who could invest Tsh3 million in a machine to produce cooking oil for the local community.

The Ministry’s initiatives have already shown promise. Sunflower production in Tanzania surged from 490,000 tonnes to 1.1 million tonnes in just one year, driven by government subsidies for high-quality seeds.

This achievement reflects the potential benefits of providing the right support and resources to farmers.

The exhibition also fostered collaboration among various stakeholders in the agricultural sector. Mr. Amani Temu, Chief of Party for the Feed the Future Tanzania, Tuhifadhi Chakula project, announced plans for annual exhibitions across the country to ensure that farmers have continuous access to the latest technologies.

“We will work closely with both the government and private sectors to tackle policy challenges and sustainably reduce post-harvest losses,” Temu affirmed.

Dr. Jacqueline Mkindi, CEO of TAHA, expressed gratitude for the support from both the Tanzanian government and USAID, acknowledging their critical role in strengthening the horticulture sector.

“We are dedicated to igniting passion in our farmers and equipping them with the tools they need to thrive,” she stated.

In addition to the tax exemption strategy, Tanzania is also preparing to enhance its agricultural exports significantly.

The Tanzania Plant Health and Pesticides Authority (TPHPA), with support from the Food and Agriculture Organization (FAO) and the European Union, has finalized market access documentation for eight key crops.

This initiative opens the door to export potential worth USD 3.5 billion across 14 countries. The crops include vanilla, pineapple, avocado, mango, cocoa, and tobacco.

At the launch event held on September 18, 2024, in Dodoma, Hon. David Silinde, Deputy Minister of Agriculture, highlighted the transformative potential of this initiative.

“These documents will remove the barriers that have previously limited the export of Tanzanian crops, opening new avenues for growth,” he stated.

TPHPA’s Director General, Prof. Joseph Ndunguru, emphasized the importance of adhering to hygiene standards and adopting modern agricultural technologies.

“To compete internationally, we must focus on both quality and safety. The verification of hygiene standards is a key part of this process,” he noted.

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.