The report notes that the growth follows the inclusion of more agricultural commodities and wider adoption of the system in previously unreached regions
Dar es Salaam. More than 2.4 million farmers have benefited from the Warehouse Receipt System (WRS), a substantial rise from just 190,000 in 2023, thanks to expanded agricultural coverage and greater regional participation.
Official data published by the Bank of Tanzania (BoT) in the Annual Financial Inclusion Report 2024 shows the number of farmers using the system jumped to 2,429,711, reflecting renewed confidence in a model that offers improved transparency, better prices, and reliable market access.
The number of certified warehouses increased to 130 from 118, while auction events rose sharply from 45 to 288 during the reporting period.
Agricultural economists have urged the government to embrace emerging technologies, such as blockchain, to reach a wider number of farmers and further enhance the benefits of systems like the WRS.
The report notes that the growth follows the inclusion of more agricultural commodities and wider adoption of the system in previously unreached regions. “This has translated into notable benefits for smallholder farmers, including price competitiveness, timely payments, and reduced reliance on middlemen,” it states.
“The system ensures that prices are openly displayed during auctions, enabling farmers to make informed decisions and receive fair compensation,” the report adds. “It also allows them to save through banks and financial institutions, promoting greater financial inclusion.”
At the heart of this transformation is the Tanzania Mercantile Exchange (TMX), which continues to serve as a transparent trading platform. TMX has been pivotal in lowering transaction costs and improving price discovery for key commodities.
Products currently traded through TMX include sesame seeds, cocoa, green grams, soybeans, coffee, and pigeon peas — crops vital to the livelihoods of many rural households.
Beyond trading, the WRS and contract farming schemes have helped farmers and fishers secure market linkages and financial access, while acting as a buffer against price volatility and post-harvest losses.
Analysts say strengthening warehouse infrastructure and digital integration will be crucial to sustaining this momentum and bringing more smallholder farmers into formal market systems.
Dr Lutengano Mwinuka, Agricultural Trade Economist at the University of Dodoma (Udom), told The Citizen yesterday that increased education and improved infrastructure have enabled more farmers to use the WRS.
However, he noted that emerging technologies such as blockchain could further expand the system’s reach.
“Opportunities remain significant. Farmers in Njombe Region are already testing blockchain technology. The government should support its adoption to ensure more crops benefit under the WRS,” he said.
The BoT Governor and Chairman of the National Council for Financial Inclusion, Mr Emmanuel Tutuba, described the progress as a result of collaborative efforts under the National Financial Inclusion Framework (NFIF 2023–2028).
“This year’s report demonstrates our collective commitment to ensuring that every Tanzanian can access and effectively use quality financial services that improve livelihoods and foster inclusive growth,” he said.
Mr Tutuba highlighted achievements in expanding access points, including mobile money and banking agents, improved ICT infrastructure, national ID integration, and rural electrification. These efforts helped raise the Tanzania Financial Inclusion Index (TanFiX) from 0.69 in 2023 to 0.81 in 2024.
He also acknowledged the crucial role of innovation, regulatory reforms, financial literacy, and consumer protection in driving inclusion and building trust in the financial system.
“While we celebrate these milestones, we remain aware of persistent challenges, particularly in deepening usage and improving service quality,” Mr Tutuba said, calling for sustained innovation, targeted policies, and strong partnerships to build a resilient and inclusive financial ecosystem.
He added: “I extend my gratitude to all stakeholders for their invaluable contributions in 2024 and look forward to continued collaboration in advancing financial inclusion as a driver of Tanzania’s socio-economic transformation.”
