Investment Opportunities Available in Horticulture Industry in Tanzania

Aim:

To establishing modern vegetables, fruits, flowers, spices and horticultural seed business operations for domestic, regional and international markets.

Current Situation:

• The horticultural industry in Tanzania is the fastest growing industry within the agricultural sector recording an annual average growth of 9 - 12 percent in the past five years. Contribution of the investments in horticultural businesses to total agricultural investments has averaged 17 per cent since 2007. This record of growth is more than double the overall annual grow the rate of the agricultural sector. In 2015, horticulture contributed 38% of the foreign income earned from the agricultural sector.The exports value in 2015 reached US $ 545 million, compared to US $ 64 million in 2007. Horticulture sub sector employs about 2.5 million people, which makes the industry a major employer within the agricultural sector ( https://www.rvo.nl/sites/default/files/2017/05/Studie%20Tanzaniaanse%20Tuinbouwsector%202017.pdf

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• The sub-sector has been earmarked as one of the potential areas for fast growth in the Tanzania Agriculture and Food Security Investment Plan (TAFSIP) and Southern Agricultural Growth Corridor of Tanzania (SAGCOT)
• A number of investors are already engaged in the production and marketing of horticultural crops mainly for export markets. The crops include vegetables (such as green beans and baby corns), flowers (e.g. roses and cuttings) and fruits (e.g. avocado, mangoes, pineapples, and berries).

Market Opportunity:

• There is a huge demand for quality horticultural products in both local and export markets. Tanzania’s horticultural exports have increased significantly.
• Domestically, there is a still inconsistent supply of quality products making the country import fruits, vegetables and spices such as tomatoes, onions, garlic and leeks, fresh apples, grapes, pears and quinces and strawberries accounts.
• There is an increased processing of fruits into juice which has led to an increased demand for the product in the country. This has contributed to the reduction in supply to the market of some fresh fruits such as mangoes making the prices fairly.
• Consistent and attractive.

Tanzania’s Competitive Advantage:

• Land availability, wide range of climatic conditions supporting production of a variety of horticultural crops, access to markets through preferential and other regional/multilateral schemes and peace and stability of the country are among the factors that make Tanzania an important investment destination for horticulture
• Cool climate, altitudes of 800m to 200m, low humidity and average rainfall greater than 700mm make the production of crops such as flowers, cuttings, vegetable/flower seeds, avocados, strawberries, raspberries and spices (cardamom) possible in the SAGCOT area and the northern zone.
• Strategic positioning of the country:

Good links to ports and airports: DSM and Tanga ports, Julius Nyerere International Airport in DSM, Songwe International Airport in Mbeya, KIA, and Nairobi provides a guarantee for sea freighting and airlifting of horticultural products destined for international markets.