Tanzania’s agricultural sector has recorded significant growth in production and exports under the country’s Third Five-Year Development Plan (FYDP III), as the government positions agriculture at the centre of its upcoming Development Vision 2050 strategy.

The new long-term development vision is scheduled to launch on July 1, with agriculture expected to remain a key driver of economic transformation, industrialisation and job creation over the next 25 years.

Agriculture continues to play a central role in Tanzania’s economy, supporting the livelihoods of approximately 65% of the population while contributing significantly to exports, manufacturing, value addition and government revenue.

The outgoing FYDP III, which covered the 2021/22 to 2025/26 period, focused on strengthening Tanzania’s middle-income status and accelerating industrial competitiveness through investment in climate-smart agriculture, infrastructure and private sector participation.

Presenting the latest agricultural budget estimates, Agriculture Minister Daniel Chongolo said government funding for the sector had increased sharply from TZS294 billion in 2021/22 to TZS1.19 trillion in 2025/26. The ministry has been allocated TZS1.105 trillion for the 2026/27 financial year.

The increased investment has supported major gains in crop production, irrigation, storage infrastructure and agricultural exports.

Food crop production rose from 17.1 million tonnes in 2021/22 to 23.78 million tonnes in the 2024/25 season, representing a 38.7% increase. National food sufficiency improved from 126% to 130% over the same period.

The agriculture sector contributed 24.6% to Tanzania’s GDP in 2025, recording growth of 4%.

Production of traditional cash crops also expanded strongly, increasing from 973,436 tonnes in 2021/22 to nearly 1.6 million tonnes in 2025/26.

Cashew nuts accounted for the largest share of output, followed by sugar, cotton, tobacco, coffee, sisal, tea, cocoa and pyrethrum.

The government is now targeting cash crop production of more than 2.1 million tonnes in the 2026/27 season.

Tanzania’s horticulture industry has also experienced rapid growth, particularly in the Southern Highlands, Northern Zone, Coast Region, Morogoro and Lake Zone.

Officials estimate that horticultural exports could generate approximately $2 billion in earnings by 2026 through large-scale commercial farming and out-grower schemes.

Horticultural production increased from 7.3 million tonnes in 2020/21 to 9.78 million tonnes in 2024/25.

Avocados have emerged as one of Tanzania’s priority export crops, with the government targeting production of 235,000 tonnes in 2026/27, up from 201,354 tonnes in 2024/25.

To support expansion, authorities plan to train 9,500 farmers and 500 extension officers while distributing more than 1.7 million subsidised avocado seedlings.

Twenty avocado collection centres are currently under development, alongside eight operational processing factories.

Infrastructure development has also accelerated under FYDP III. Storage capacity at the National Food Reserve Agency increased from 251,000 tonnes in 2020/21 to 776,000 tonnes in 2025/26.

Meanwhile, 780 irrigation projects are being implemented nationwide, with dozens already completed and more under construction.

Domestic fertiliser production rose significantly from 32,239 tonnes in 2020/21 to 123,203 tonnes in 2025/26, while improved seed availability increased by nearly 78%.

The cooperative sector also expanded during the plan period, with registered cooperatives rising from 4,661 in 2022/23 to 6,545 in 2025/26.

Agricultural exports recorded some of the strongest gains, increasing from $2.1 billion in 2021/22 to $3.73 billion in 2024/25.

According to the Bank of Tanzania, strong export earnings from coffee, tobacco, gold and tourism have helped support foreign exchange reserves, which stood at $6.084 billion by March 2026.

The government said its long-term strategy will continue focusing on commercial agriculture, youth participation, irrigation development, mechanisation and expanded market access as Tanzania seeks to position itself as a regional food production and export hub.