EDITORIAL: SUPPORT AGRICULTURE FOR ECONOMIC PROSPERITY
The role of agriculture in the economy is quite significant despite the fact that the its growth has been unimpressive. Look! Close to 30 per cent of the gross domestic product (GDP) comes from agriculture and it remains the single largest employer. However, the growth of the sector has been deteriorating in the past few years. Unfortunately, even the efforts to stimulate economic growth are normally placed to some other economic activities which actually contribute less to the economy. The point here is not to ignore the importance of other economic activities but making sure that equitable efforts and resources are shared among the activities.
Mining, telecommunications, real estate, construction and transportation are very popular economic activities but their respective shares to the GDP are far behind agriculture.
The general public also needs to know this fact so that they make proper decisions on ensuring the right allocation of the resources in the name of growing the economy.
Tanzania is also gearing up for industrialisation but that cannot be successful in isolation of agriculture. Think of finished products like sugar, cotton clothes, leather shoes and many processed foods which basically originate from agriculture.
In 2017 particularly, agriculture experienced slow growth and little funding. When commercial banks reduced their lending to economic activities due to tight liquidity, agriculture recorded negative growth of credit. For instance, in the year ending July 2017 agriculture experienced shrinkage of -9.4 per cent compared to -0.2 per cent in the previous year.
However, recently two positive developments reared their potential for harnessing and exploitation in Tanzania’s agriculture. One is a programme to mechanise smallholder farming across Tanzania. The other equally-noble development is the NMB Bank PLC having doubled its lending to farmers.
