The installed capacity of the Minjingu fertilizer factory is about 50,000 tonnes, thus Yara’s introduction. It is bringing new impetus into the farming methods that need fertilizer to transform the agricultural sector.

 

The US$25 million Yara investment is the first on the ground infrastructure project within the framework of the Southern Agricultural Growth Corridor of Tanzania (SAGCOT), a public private partnership which aims to transform subsistence smallholder agriculture into sustainable commercial farming.

 

Yara has been in the country for the past nine years, ensuring farmers access to fertilizers, crop nutrition programmes and providing them with technology that increases yields, improve product quality and reduce environmental impact of agriculture practices.

 

The partnership’s ambition is to create at least 420,000 new employment opportunities within the agricultural value chain and bring the country’s annual farming revenues of an estimated 1.2 billion US dollars. Agricultural sector fertilizer consumption has increased from below 100,000 tonnes before 2010 to about 200,000 tonnes per year at present, thanks to the government’s initiative in granting subsidy and removing all taxes on fertilizer products.

 

The government’s efforts have seen increased use of fertilizers to 13kg per hectare in 2013 from only 8kg in 2005. The figures are above the continent average use of fertilizers of 5kg per hectare but below global average.

 

The agricultural sector that employs over 70 per cent of the workforce, contributes about 25 per cent to the Gross Domestic Product (GDP), 34 per cent of foreign exchange earnings and 125 per cent of food sufficiency. In a bid to enhance the agricultural sector contributions to the economy, the government last month launched Agriculture Development Bank that will end farmers’ problem of failing to access finance as most commercial banks regards agriculture as too risk business to lend.

 

Apart from providing loans, the bank will finance putting in place important infrastructures for agriculture development including irrigation schemes to reduce over dependency of rainfall. Speaking at the inauguration, President Kikwete said Yara is an important partner in realising green revolution in Tanzania. Yara’s facility and network will benefit smallholder farmers by getting fertilizers at an affordable price in the rural areas thus increasing agriculture productivity.

 

“The initiative is complimenting the government’s efforts to boost agriculture sector contributions to the economy and poverty alleviation,” he said. Agricultural sector is still dominated by peasant farmers characterised by low productivity and less application of modern farming methods. “One of the challenges has been convincing smallholder farmers that use of fertilizers is desirable,” said President Kikwete.

 

One of the biggest headaches was to use the scarce resources to import fertilizers to cover the deficit thus, “Yara is a welcome development and solution to the problem.” To enhance use of more fertilizers, the private sector has been involved to ensure that fertilizers and other farm inputs reach farmers at an appropriate time. For smooth implementation, the government has been continuously putting friendly environment for active private sector participation.

 

He commended Yara’s initiative while looking forward to seeing more investment flow from Norway and other development partners. “Aid in itself is insufficientÉ. we need more investment to build our capacity in various areas, creating jobs, increase income and reduce poverty,” he said.

 

“We value Yara’s initiative in supporting government efforts to transform agriculture sector development to realise green revolution,” President Kikwete said, adding that we have been encouraging smallholder farmers to increase use of fertilizers in order to enhance productivity. The Norwegian Minister for Industry and Trade, Ms Monica Meland said at the event that Tanzania’s commitment to agriculture sector development has been impressive making it attractive to global investors due to its huge potentiality.

 

“I hope Yara will continue contributing significantly to agriculture growth and Tanzania remaining committed to creating friendly business environment,” she said. Yara’s investment is increasing the flow of Foreign Direct Investment to Tanzania. Norway is also investing in oil and gas sectors.

 

Norway remains key development partner for Tanzania particularly in promoting agriculture growth to enhance its contribution to end abject poverty. The president and Chief Executive Officer of Yara International, Mr Svein Tore Holsether, said” “The opening of the fertilizer terminal signals a turning point in Yara’s capacity to support agriculture growth in Tanzania.”

Source : dailynews.co.tz