TAHA: Promoting the Horticultural Sector in Tanzania
BACKGROUNG
The Tanzania Horticultural Association (TAHA) has become the most effective advocate for the horticultural industry with proven success in lobbying and international marketing of the industry. Horticultural industry is the fastest growing sub-sector of the national economy. Established in April, 2004, TAHA has made remarkable strides towards improving the status of the horticultural industry in Tanzania. TAHA is highly representative of the burgeoning floral, vegetable, fruit, seed and cutting exporters. TAHA is a result of reconstitution of the now defunct Tanzania Flower Association (TAFA). This was a necessary step as the defunct TAFA was only focused on the flower industry which is still quite small.
OVERALL OBJECTIVES OF TAHA
TAHA was established with the aim of promoting and developing horticulture and addressing the general and specific needs of its members. This involves among several things providing a collective voicing platform for issues affecting the sector, providing a common front for promoting the members businesses in and outside the country, advocacy for the improvement of the environment in which the sector operates.
MISSION
“To promote the Horticulture sector in Tanzania to become more profitable, sustainable, and participate more effectively in the development of the country.”
VISION
“A vibrant, prosperous and sustainable horticultural production in Tanzania”
Activities
TAHA is a multi tasked organization but its activities are anchored on the four strategic activities namely:
1.Lobbying and advocacy
· Representing TAHA members in various forums and defend the interests of its members from undue interferences.
· Work together with relevant partners/stakeholders and lobby for the interests of its members
· Addressing policy related issues that affects the industry
2. Information dissemination
· To put in place a mechanism for sharing technology and expertise, etc.
· “One stop shop” where information about the horticultural industry can be obtained.
· Update members and other stakeholders on various horticultural developments locally and globally
3. Technical support
· Identify member’s common problems and providing practical solutions
· Organizing technical, working groups, seminars, and workshops on relevant issues
· Empower members to attain international standards and certifications as will be deemed necessary and expedient for purposes of attaining and sustaining quality in production.
· Developing project proposals, and securing funds for horticultural project implementation.
· Coordinating various horticultural projects in Tanzania aiming at improving the competitiveness of the sector.
4. Promotion of the horticultural sector and members products
· Participation in various fora and trade shows both locally and internationally
· Market research and advice to members on quality improvements and the right variety according to international standards.
· Identify possible development partners to develop relationship with them to secure TAHA of sufficient funds.
PARTNERSHIPS
TAHA runs programmes to address crosscutting horticultural issues to align governing agencies, policy makers, investment bankers, farmers, and exporters, service providers together in a common effort to increase global market competition by pursuing a political and business environment that is dedicated to elevating the potential of the horticultural sector in Tanzania. In this effort, TAHA is receiving great support from the Dutch Government, Tanzanian Government and its various institutions and USAID. Research and Trainings institutions are also among the partners that work with TAHA in developing horticulture in Tanzania. TAHA is also working with various consultancy firms both local and international to address various challenges impeding the industry’s growth.
MEMBERSHIP
As a member based organization, TAHA has three categories of membership as follows: Comprehensive: Producers, exporters and processors of horticultural related products Allied: Suppliers of agro inputs, and other service providers in the industry i.e clearing and forwarding, insurance, security, etc Associate: small growers’ groups/associations, consultancy companies, development partners, individuals, etc.
ACHIEVEMENTS
In the past three years of operations, TAHA has registered tremendous achievements some of them being:
•
Promoting the horticultural industry and members products
internationally and locally through active participation in various
events i.e. international and local meetings, trade shows, establishment
of various promotional materials to include the taha website: www.tanzaniahorticulture.com, banners, fliers, posters, etc.
• Market diversification of our members products
• Attraction of new investments in the industry
• Establishment of the strong link between the industry and the government and also the various development partners.
• Successfully l initiation and implementation of development projects
to include the WSSD Public Private Partnership projects, USAID funded
projects, Advocacy Projects addressing the infrastructural constraints
which is funded by BEST-AC, and Small growers capacity building project
under Tanzania Private Sector Foundation (TPSF) Support Programme.
• Wider membership network in the country.
• Increased members production capacity
• Members Technical Capacity building through various technical training programmes.
• Branding of the industry and TAHA locally and internationally especially through media sensitization initiatives.
• Formation of HODECT- Horticultural Development Council of Tanzania
which is a Public Private Platform (Policy Body) seeking to fast truck
horticultural issues for socio-economic growth.
CHALLENGES
1 FINANCE
Unfavorable financing terms
• Access to Bank Loans: Most Banks consider the horticultural sector
as a high risk sector so there is general unwillingness to advance loans
to the sector
• Interest: Interest rates are high even though world interest rates and Tz. Inflation are low
• Tenure: Agriculture requires long terms to repay finance. Long term loans (7-10 years) are not available.
2 AIRFREIGHT
• Sectoral Viability: There is no dedicated cargo flight from Tanzania
and this negatively impacts the sector in terms of ability to portray
itself positively.
• Transport costs and access; With limited number of flight at present
many exporters have problems accessing freight out of Tanzania and this
necessitates trucking to NRB which is an extra cost. Nairobi flights
are expensive particularly for the exporters who have low volumes of
produce.
3 INFRASTRUCTURE • ROADS: The growth of horticulture requires accessing more and more
suitable land. This at present is very difficult because of the bad
roads.
Roads that are clearly essential to horticultural development are not
at present prioritized. This brings about delay of products delivery at
the airport, etc
• AIRPORT: With airfreight being targeted as a key constraint to
resolve, careful consideration of the appropriateness and
competitiveness of KIA should be taken.
• WATER: Tanzania has considerable water resources. These resources
are underutilized and ineffectively managed. Horticulture requires
irrigation and there is considerable competition for water.
Where the law is fairly clear the management and application of the law is lacking.
4 ENABLING ENVIRONMENT
• TRAINING: There is unavailability of properly trained people for the industry.
These include skilled workers for irrigation, spray application, quality control, extension and small grower training.
• Land:
It is very difficult to obtain land.
Illegal squatting is rampant.
Land and security authorities rarely exercise their authority to sort
out land problems and reference to the courts is very time consuming
•
SECURITY: Squatting, land invasion (cattle) and various types of theft
are serious problems in developing a horticulture business. An
inordinate amount of time is spent on insuring ones business is secure
relative to these risks.
•
EXTENSION: The GoT runs an agricultural extension service. However, it
is difficult to access this service to promote small grower projects.
The service seems designed to help small growers but often takes an
adversarial view to interaction with business
• Projects:
The
GoT runs a number of projects for agricultural development like PADEP
and AMSDP. However these projects are difficult to access and seem to be
structured in a way that precludes private sector participation.
• INPUT AVAILABILITY:
Poor
supply and high costs of inputs locally is a major problem making the
sector less competitive. Bureaucratic procedures and high costs involved
in registering products in the country demotivates manufacturers to
register a wider range of effective products
• MARKET CONDITIONS:
Stringent market conditions in the importing countries are a strain on
the exporters. Evolution of multiple standards resulting to increased
compliance costs has been a stumbling block for many growers in
accessing new markets.
HORTICULTURAL INVESTMENT OPPORTUNITIES
• Air freight operators
• Manufacturing of raw materials (packaging materials, agro inputs, driplines, planting troughs, etc)
• High value vegetable exporting
• Processing and canning of fruits
• Flower farming
• Laboratory-testing and analysis
WHY SHOULD SOMEONE THINK OF INVESTING IN THE HORTICULTURAL INDUSTRY IN TANZANIA?
The following are some of the comparative advantages:
• Favorable climate- from tropical to temperate climate
• Wide network of rivers and lakes
• Underutilized arable land
• Competitive labor costs
• Political stability and peaceful people of Tanzania
• Existence of a vibrant Association- TAHA
• Support from the government