Is rice and sunflower commercialisation in Tanzania inclusive for women and youth?

Abstract

Rice is Tanzania’s third most important staple crop after maize and cassava, and produced by more than 1 million households who are mostly small- scale farmers. Meanwhile sunflower is the most important edible oil crop in Tanzania, also grown mostly by small-scale farmers. Over the last two decades, rice and sunflower have increasingly become important sources of income. This can be attributed to efforts by the government, in collaboration with development agencies, to commercialise rice and sunflower production to improve livelihoods and reduce poverty among actors in both value chains. There have also been efforts aimed at ensuring sustainable commercialisation and involvement of women and youth in the commercialisation process (URT, 2016; URT, 2019). Despite these initiatives, women and youth involvement in the rice and sunflower commercialisation process is likely to be constrained by their limited access to land and financial capital. Land access problems among women and youth in Tanzania are largely the result of cultural restrictions on the ownership of ancestral land by women and youth (USAID, 2019). Although the Village Land Act of 1999 recognises the right of every woman to acquire, control, and use land to the same extent as any man, it does not have provisions on the rights of women and youth to inherit ancestral land (URT, 1999). Women and young people also often face limited access to financial capital. Collateral requirements of commercial banks are a significant stumbling block as asset ownership is often low for women and youth (Mbuga, 2019). To overcome these constraints, the government has established the Tanzania Agricultural Development Bank (TADB) to provide a guarantee to small-scale farmers who lack collateral but are trying to access credit from commercial banks. The guarantee scheme is reported to be successful. Apart from TADB, which has been reported to be successful (The Citizen, 2021), there are other guarantee schemes involving commercial banks, millers (guarantors) and members of famers’ groups. A notable example is the tripartite agreement involving the National Microfinance Bank (NMB), a rice processor (guarantor), and members of Minepa Farmers Association in Malinyi District, Morogoro, Tanzania (Aga Khan Foundation, 2020). The agreement requires farmers to sell rice to the processor, which then repays the loan to the bank on behalf of the farmer.

Description

Technical report

Keywords

Rice, Sunflower, Commercialisation, Women-youth

Citation