UN’s take on the govt’s General Budget and agriculture

08Jun 2016
Prosper Makene
The Guardian
UN’s take on the govt’s General Budget and agriculture

AS the government tables its 2016/17 General Budget today, the UN system in Tanzania expects it to make provisions for fertilisers and quality seeds supply so as to improve the country’s agricultural sector.

The UN Resident Coordinator in Tanzania, Alvaro Rodriguez told ‘The Guardian’ from Dodoma on Monday that it would be helpful for the government to invest in increased supply of quality seeds and also consider incentives to increase both their availability and the uptake and usage of fertilisers by farmers.

Rodriguez also said that provision of productivity enhancing agriculture inputs such as seeds and fertilisers has been a priority of the government in the past years.

Asked on whether, the 2016/17 General Budget in has strategically addressed issues of agricultural finance, particularly financing smallholder farmers as a way of transforming the sector, he said: “Yes, absolutely. It would be surprising if the budget does not address agricultural finance.

This is particularly so, because the government’s flagship Agriculture Sector Development Programme, Phase 2 (ADSP 2) identifies agricultural finance as a key investment area – with emphasis on improved access to rural micro-finance and agricultural credit”.

He added: “The ADSP 2 recognizes that this will require development of a rural financing strategy, as well as strengthened organisational and technical capacities and provision of short and medium term financing.”

He pointed out that commitments to Maputo declaration are yet to be fully realised to ensure that African countries are giving 10 percent of the budget to agriculture.

“Indeed fewer than 20 percent of countries have fulfilled their Maputo commitments. However, it is notable that many countries are making progress.” He said.

He added: “For example, Ghana’s agricultural growth rate has consistently exceeded 5 percent, while Ethiopia has witnessed rapid growth in agriculture, averaging growth of 9.5 percent between 2005 and 2009.”

He noted: “There is no doubt that both Maputo and Malabo demonstrate the high level of political commitment to agricultural sector growth in Africa generally and in the EAC in particular.

However, the failure to meet these goals is probably the result of competing needs and priorities as African governments balance agricultural sector development needs with other development needs in linked sectors that are critical to agriculture development, such as health, education, energy, roads, and telecommunication”.

He further said that the Malabo Declaration and the adoption of the Strategic Development Goals (2015) provides a platform for renewed advocacy for governments to honour their commitments and thereby contribute to reduced rural poverty and elimination of hunger.

The UN Resident Representative revealed that agriculture forms the backbone of most economies in Africa and it accounts for 32 percent of the continent’s gross domestic product (GDP).

“It is thus key to the growth and development prospects of most African countries, including EAC countries. Agriculture is also the main source of employment and livelihoods for most East Africans (75 – 80 percent). The potential for agriculture-to reduce poverty, improve household incomes and livelihoods and to drive economic growth is enormous” he said.

He insisted: “The World Bank estimates that growth in the agricultural sector is 2.5 times as effective at reducing poverty as growth in other sectors”.

Commenting on agricultural sector areas that should be given priority, he said: “If it is referring to agriculture, then the priorities should be, investment in increased productivity, inputs and infrastructure such as irrigation, commercialisation of agriculture, improved marketing systems and linkages and the rural infra-structure to improve access to markets, support for agro processing and better availability of agricultural financing and credit”.

The UN believes that the rural areas of Tanzania and the agriculture sector offer great potential to address poverty alleviation and youth employment.

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