Mechanization leads to increased output of higher value products, which culminate to improved livelihoods for smallholder farmers. In fact, the routes to agricultural mechanization in Asia, for example, Vietnam rice production mechanization plan, enabled farmers to shift from a small and unplanned farming form to large-scale production. Their approach provides interesting insights, experience, and knowledge of how Tanzania can mechanize its agricultural sector.
Farming in Tanzania is still unquestionably, the leading economic activity for over 65 percent of the population. However, it is faced with major constraints such as unskilled labour, poor technology and dependence on unreliable and irregular weather conditions, that hinders its development.
According to the Ministry of Agriculture, the country has a total of 44 million hectares of land suitable for agricultural production, only 10.8 million hectares are currently being cultivated. Therefore, the use and availability of modern farming technologies will be a driving force towards improving land productivity through establishment of projects such as horticulture, modern irrigation, modern livestock and poultry production.
Additionally, mechanised agriculture practices will increase access of raw materials to feed the country’s industrial demand, as well as support the agenda to eliminate malnutrition and hunger in Africa by 2025.
The government recognises the pivotal role of the agricultural sector, both in terms of economic growth and poverty reduction and has created different strategies and policies to support the sector, such as; Tanzania Agriculture Mechanization strategy (2006) and second phase of the Agriculture Sector Development Programme (ASDP II). Among other things, the latter highlights the importance of mechanization in increasing rural labour productivity and attracting young entrepreneurs to the sector.
Despite the government’s efforts, the level of farm machinery use by smallholder farmers in Tanzania is still low. Some of the major challenges include: lack of coordination in linking farmers demand and supply of machineries and their services, the sunk cost nature of farm machinery investments, and lack of machinery maintenance services in rural areas.
In order to address these challenges and increase access to agriculture equipment, Stanbic Bank rolled out Vehicle and Asset Finance (VAF) facility, to help smallholder farmers access short- to medium-term funding to finance the purchase of equipment, processing machinery and movable assets.
Stanbic Bank Tanzania is busy implementing the strategy to grow its agribusiness market share to double digits in the next 5 years. Recognizing the importance of public-private partnership to transform the agriculture sector, it is paramount for financial institutions and other reputable development stakeholders to implement strategies and solutions to help mechanize agriculture.
