Agriculture is the backbone of Tanzania’s economy and remains the primary source of livelihood for the majority of the population. The sector directly and indirectly supports about 65 to 70% of Tanzanians, largely through smallholder farming, livestock rearing and fisheries. Tanzania is one of East Africa’s leading producers of staple crops including maize, rice, cassava and sorghum, while also being a major exporter of cash crops such as coffee, cotton, cashew nuts, tea, tobacco and cloves. The country is Africa’s largest producer of cashew nuts and among the continent’s top coffee producers. Livestock production is widespread, with one of Africa’s largest cattle populations, while fisheries, particularly Lake Victoria fisheries and marine fishing along the Indian Ocean, play a significant role in food security and exports.
Economic Contribution
Agriculture contributes approximately 26 to 28% of Tanzania’s GDP and accounts for about 65% of total employment, underscoring its central role in income generation and poverty reduction. Crop production dominates the sector, contributing nearly 60% of agricultural output, while livestock contributes around 30% and fisheries about 10%. Agricultural exports account for roughly 30% of total export earnings, with coffee, cashew nuts, tobacco, cotton and tea being the main foreign exchange earners. Despite its scale, productivity remains relatively low, with most production undertaken by smallholders using rain fed methods and limited mechanisation.
Outlook
The medium term outlook for agriculture is positive, supported by government investment in irrigation schemes, warehouse receipt systems, agro input subsidies and rural infrastructure. Rising regional demand, expanding agro processing capacity and export diversification offer strong growth potential. Priority opportunities exist in value addition for cashew nuts, coffee roasting, edible oils, sugar refining, dairy processing and fish processing. However, climate variability, post harvest losses and limited access to finance remain structural challenges. Strengthening irrigation, mechanisation and agro processing could significantly raise productivity and export competitiveness.
