Agriculture for Effective Industrialization and Poverty Reduction

The context of Tanzania is such that there is close link between achieving industrialization and achieving agricultural transformation. Increased growth in agricultural productivity, output and income contributes to a rapid reduction in rural poverty, supplies raw materials to industries and makes agriculture a market for industrial outputs. Policies that fail to take into account this nexus are bound to have little if any, impact in the overall national development. The chapter argues that the industrialization policy, as broad as it may be, must build the nexus between the agriculture, other rural sectors (non-farm), the urban areas, and manufacturing. Policies that enhance this linkage will see agricultural sector being a constructive player in the industrialization process and the economy at large. The chapter calls for overall rural development policies and strategies that focus on increasing agricultural production and productivity, including infrastructure (physical and digital) to link markets, financing and right price signal to raise agricultural profitability and rural incomes. The chapter notes with concerns that Tanzania does not have the right agricultural technologies for the farmers to adopt and there is lack of the right amount of investments to develop rural infrastructure for effective industrialization and poverty reduction. While, it recognizes this, the policy proposals call for blending efforts from the government, small-scale farmers, the private sector, and other non-state actors. The chapter finally calls for policies, which empower women and youth and recognize the big role they play in the economy.