KEY RESULTS

• The Enhanced Integrated Framework’s (EIF’s) partnership with the United Republic of Tanzania has worked towards trade diversification by enabling policies and strategies, institutional arrangements for Aid for Trade (AfT), and investment and enhanced value addition in sectors such as honey, seaweed, anchovies and horticulture. In the seaweed value chain, average productivity per unit acre has almost doubled as a result of using new deep-sea harvesting methods and equipment.
• National trade coordination structures, including the National Steering Committee (NSC) and the National Implementing Unit (NIU), established through the EIF under an AfT partnership with the Ministry of Investment, Industry and Trade, have been used by development partners to coordinate various projects, including a USD 5.5 million Swiss-funded Responsible Tourism for Tanzania project. 
• The NIU was instrumental in integrating trade into the Second Five-Year Development Plan (FYDP II), the current FYDP III and the Zanzibar Development Vision.
• Tanzania’s African Continental Free Trade Area (AfCFTA) implementation strategy, developed with EIF support, has created an effective framework for stronger regional integration. 

Bridging the gap between agriculture and tourism for more and better jobs

The United Republic of Tanzania, with a population of 64 million, comprises the Tanzania mainland and the semi-autonomous Zanzibar archipelago of islands located in the Indian Ocean. The country is a member of the East African Community and part of the Great Lakes Region. 

In 2010, the Government prepared a Long-Term Perspective Plan, which was then divided into three medium-term development plans (five years each). The phased planning process aimed to redirect efforts to achieve the 1999 National Development Vision 2025’s social and economic development goals. Efforts to reduce poverty, improve livelihoods and promote good governance and accountability were included in all the five-year development plans.[1] 

Tanzania’s economy is dominated by (largely subsistence-based) agriculture, which employs about 66% of the workforce. The main cash crops for export are tobacco, cashew nuts, coffee, tea, cloves, cotton and sisal, with cashew nuts providing livelihoods for 75% of over 700,000 households, followed by coffee. Most workers in agriculture are women, and the sector is central to the Government’s objectives of growth and poverty reduction.

The Revolutionary Government of Zanzibar’s Development Vision 2020 and the Strategy for Growth and Reduction of Poverty (Draft MKUZA III) both highlight the importance of expanding the tourism sector and increasing agricultural productivity and value. The island of Zanzibar is prioritizing the sustainable use of its marine resources to enable micro-, small- and medium-sized enterprises (MSMEs) to benefit from opportunities presented by the Blue Economy, which employs more than 23 000 people.

The National Implementation Unit: a game-changing institutional structure 

In 2013, EIF supported establishing an NIU within the Ministry of Investment, Industry and Trade on the mainland. A subsidiary local NIU was set up in Zanzibar. The NIU’s role has been to support the coordination and implementation of the country's development partner-funded AfT projects that have focused on areas such as helping small businesses trade and create the kinds of jobs that improve lives and spur sustainable and inclusive economic development in various horticultural value chains and tourism sectors. 

The capacity built into the Ministry of Investment, Industry and Trade through the NIU has enabled it to successfully harmonize revenue collection and reporting systems to improve trade administration. It has also contributed to the mainstreaming of trade in agribusiness, tourism and mining; the integration of agribusiness with tourism; and the strengthening of the Zanzibar Bureau of Standards. The NIU was also instrumental in integrating trade into the Second Five-Year Development Plan (FYDP II), the current FYDP III and the Zanzibar Development Vision. Additionally, it has supported the development of the country’s Intellectual Property Policy and Strategy. 

Readying for continental trade and e-commerce 

In January 2022, Tanzania deposited the instrument of ratification for the Africa Free Trade Area (AfCFTA). To boost Tanzania’s capacity to trade under the AfCFTA, the EIF helped develop an implementation strategy on market access opportunities, with a focus on priority products, services and markets. 

The EIF also helped develop an e-commerce strategy to assist the country in getting up-to-date with global trends. The strategy includes the development of a digital platform for efficient trading and access to international markets. The strategy was informed by an eTrade Readiness Assessment, which was completed by the UN Conference on Trade and Development (UNCTAD) in 2020. This assessment pointed towards the country’s potential to become a leader in online trade in East Africa, especially in mobile finance and digital payments. 

A taste of Tanzania’s horticultural potential

The NIU also played a central role in coordinating and implementing components of the 2013-2019 Swiss State Secretariat for Economic Affairs (SECO) USD 5.5 million-funded project aimed at integrating horticulture supply and value chains into the tourism sector, with a focus on women and youth. Anchoring the project in the NIU facilitated linkages between ministries, agencies and the private sector, and increased government ownership of the project. In addition, it strengthened partnerships with the five implementing agencies: UNCTAD as the lead agency, the UN Industrial Development Organization (UNIDO); the International Trade Centre; International Labour Organization; and the UN Office for Project Services. 

The project supported local smallholder farmers in growing more quality horticultural products such as tomatoes, cucumbers and peppers, and in gaining market access to the country's tourism industry. Producers and processors were linked with hotels, supermarkets, the Tanzanian Chefs Association, the National College of Tourism, and other key players in the tourism sector. Training was conducted for the tourism catering industry on ways to use locally grown produce. At the project’s peak, horticulture processors supplied their products to 41 hotels and 35 supermarkets, achieving sales of up to TSZ 60 million (USD 24,000) per month. 

A sustainability review of the project concluded that it made a positive difference in the horticultural sector in Tanzania and that it contributed to capacity for trade, especially for small producers and youth, helping them grow and develop the quality and quantity of their production and their access to market.

Building on success

The successful outcome of the SECO project partnership spurred a follow-up EIF and UN Development Programme (UNDP)-financed project aimed at boosting incomes from palm oil, honey, seaweed, anchovies and horticulture. The USD 2.1 million project started in 2021, with co-financing from the Government of Tanzania and UNDP as the main implementing partner. The project also drew lessons from an earlier UNDP project to strengthen productivity and market access among women and youth. The project sought to improve the productivity, value addition and competitiveness of Tanzanian MSMEs in domestic, regional and international markets. Speaking about the value chains of the project, Godfrey Nyamrunda, Deputy Head of the UNDP Zanzibar office said that these value chains "were chosen because those are the areas where more women are working than men. Over 95% of the producers who are benefitting are women and youth."

To ensure sustainability after its conclusion, the project built the capacities of local government authorities to train and mentor MSMEs on business development, with further support in the form of equipment and infrastructure. Training was delivered by EMPRETEC-certified trainers, an UNCTAD programme for entrepreneurial development. Capacity support for trade ministries and agencies also included training on project cycle management. 

Increasing competitiveness of promising employment sectors 

The horticulture, palm oil and honey components of the EIF and UNDP-financed project are located in the Singida, Kigoma, Simiyu and Mara regions of mainland Tanzania. Here, project partners supported women and youth through training on land-use planning and farm management as a way to sustainably increase productivity. 

In Simiyu and Mara, the support was extended to members of the Tanzania Horticulture Association (TAHA), which was also involved in the previous SECO-funded project. Twelve groups comprising a total of 720 farmers – 368 men and 352 women – involved in horticulture, benefited from the project. These farmers received training in areas such as group dynamics, entrepreneurship and good agricultural practices. They also gained access to improved irrigation schemes and pumps within the tomato and bird's eye chili value chains. The crops are intended for supply to the Serengeti tourist hotel market (a kind of indirect exports) and for regional export to Uganda and Kenya. TAHA is actively involved in sourcing new markets for the beneficiaries.

In Singida, two honey processing plants were constructed, and modern beehives bought, along with work suits for harvesting and associated equipment. Training focused on production, processing and packaging, with 40 young men and 15 women participating. 

In the Kigoma region, the EIF supported farmer groups to participate in a palm oil value chain workshop as well as a trade fair. Support included the construction of sheds for solar and gas dryers, irrigation systems, common processing sheds for palm oil, and other storage facilities and processing equipment. 

The main export market for honey is the Middle East. Palm oil and horticulture products are mainly in demand from the local tourism sector and supermarkets, as a continuation of the SECO-funded project and engagement with TAHA. Exchanges between the College of Tourism, based in Arusha, and TAHA are taking place together with capacity-building. Alluding to some of the achievements, UNDP’s Nyamrunda stated that:

Making the most of the Blue Economy

Zanzibar’s focus on the Blue Economy includes the EIF-supported seaweed value chain on Pemba Island and the anchovies value chain on Unguja (the largest and most populated island of the Zanzibar archipelago). The biggest export market for seaweed is Europe, while that for anchovies is the Democratic Republic of the Congo. 

Dried seaweed is in demand globally for use as a thickening agent in food products such as ice cream and cosmetics. Increasingly, it is also used in sustainable animal feeds, biofuels and pharmaceuticals. The Government has committed nearly TZS 15 billion (USD 6 million) towards procuring fishing boats and inputs, seaweed farming boats and processing equipment, as well as supporting mud crab and sea cucumber farming, and providing training and awareness programmes. 

It has also invested in establishing the Zanzibar Seaweed Company to produce and process semi-carrageenan, an additive derived from red seaweed and used to thicken, emulsify, and preserve food and drinks. A policy is also being developed by the Zanzibar NIU to ensure the sustainability of the seaweed and anchovy value chains. 

Trainings under the EIF-supported project have focused on best practices in deep-sea farming for seaweed, fish handling, preservation and processing for anchovies. The trainings have also explored opportunities in seaweed and anchovy products – such as seaweed soap – as well as business planning and development. 

The project has supported the purchase of boats, swimming gear, racks for seaweed farming and packaging equipment, while UNIDO has provided machinery for processing seaweed bar soap, jam, powder, flowers and body cream. From 2021 to 2022, anchovy production doubled to 10 tons, and the project created 399 new jobs, 309 of which went to women. According to Said Seif Mzee, Deputy Principal Secretary from the Ministry of Trade and Industrial Development, Zanzibar: 

Set to flourish

The EIF’s partnership with the Government of the United Republic of Tanzania has contributed to the realization of the National Development Vision 2025’s social and economic development goals and the five-year development plans of the Long-Term Perspective Plan. 

By building on existing government initiatives, efforts by international partners, and the increasing capacity of local government and MSMEs, the partnership has strengthened the sustainability of trade efforts in the country.