TANZANIA’s agricultural sector is set for a boost following the launch of a $2m, equivalent to 4.9bn/, partial credit guarantee by the Africa fertilizer financing mechanism (AFFM).

Dr. Stephen Nindi, the deputy permanent secretary for food security, said at the unveiling of the project during the annual agro-sector exhibition here at the weekend, affirming that the project is intended to remove risks in the fertilizer supply chain, improving affordability and ensuring steady availability for farmers nationwide.

He said the project is aligned with national development priorities and reflects Tanzania's readiness to work with partners who share its vision for a resilient, market-driven agricultural sector.

The government intends to provide the necessary institutional support, coordination and stakeholder engagement to ensure that transformative initiatives deliver lasting impact for farmers and the broader economy, he stated.

Under the theme “Feed ourselves and feed others commercially,” the government expects that by 2030 the country will have cut post-harvest losses to just 5.0 percent while raising agricultural export revenues from $1.2bn in the past financial year to $5,0bn by the end of the decade, creating three million jobs especially for youth and women, he explained.

It also targets 100 percent availability of industrial raw materials to support agro-processing and value addition, alongside 10 percent agro-sector growth rate through modernisation, mechanisation and digital agriculture, he stated.

Marie Claire Kalihangabo, the AFFM coordinator, said the mechanism, hosted and managed by the African Development Bank (AfDB), will be implemented in Tanzania in partnership with the Africa Fertilizer and Agribusiness Partnership (AFAP).

“This second phase includes a $2.0m partial credit guarantee and a $528,600 grant”, she stated, outlining components of the project as supporting hub agro-dealers to access the credit guarantee facility, boosting fertilizer availability, along with ensuring effective project management and coordination.

James Mutonyi, the AFAP East Africa regional director, said that most farmers fail to apply the right fertilizer for their crops, in line with climate or soil requirements due to limited supplier capital, which reduces options and productivity.

Under the initiative farmers will be assured of consistent supply of quality, affordable fertilizers from agro-dealers and cooperative unions, he further noted.

Sadi Mwang’onda, an agro-dealer in Southern Highlands regions, testified that the project had transformed operations for suppliers and farmers. "We have small capital and are not bankable. But under this initiative, we have been supported and can now supply fertilizers in larger quantities," he added.