Agricultural Sector Development Programme Phase II (ASDP II)

Agricultural Sector Development Programme Phase II (ASDP II)

Agricultural Sector Development Programme Phase II (ASDP II)

The government of Tanzania has finalized the formulation of Agriculture Sector Development Programme II (ASDP II). This is a ten-years programme that will be implemented in two (2) phases each divided into
five-year implementation period. The First Phase will start in 2017/2018 – 2022/2023. The program is a follow up to the ASDP I implemented from 2006/2007 to 2013/2014. ASDP II has been designed based on
the lessons learnt during the ASDP I implementation.

The program aims at transforming the agricultural sector (crops, livestock & fisheries) towards higher productivity, commercialization level and smallholder farmer income for improved livelihood, food and nutrition security and contribution to the GDP. The program strategy is to transform gradually subsistence smallholders into sustainable commercial farmers by enhancing and activating sector drivers and supporting
smallholder farmers to increase productivity of target commodities within sustainable production systems and forge sustainable market linkages for competitive surplus commercialization and value chain development.

Preparation of the program has gone through a comprehensive consultative and stakeholder engagement at all levels. This document is a result of the views, comments and wishes of the various stakeholders including private sector, development partners, farmer organizations and non-governmental organizations and the public sector. The document is presented in eight sections: (i) the background; (ii) sector programmes, projects and public expenditure; (iii) ASDP II design process and principles; (iv) program objectives and description;(v) program costs, financing and financial management; (vi) institutional and implementation arrangements; (vii) benefits and economic and financial analysis (EFA) and (viii) Implementation Modalities and Risks. Below are the key highlights of the program.

A. MACROECONOMIC INDICATORS AND CONTRIBUTION OF THE AGRICULTURAL SECTOR TO THE ECONOMY
1. Tanzania’s macroeconomic indicators showed robust growth in Gross Domestic Product (GDP) before and during implementation of the first phase of the Agricultural Sector Development Programme (ASDP I) which started in 2006. In recent years, Tanzania has maintained relatively stable, high growth over the last decade (averaging 6%–7% per annum). The GDP growth rate was 7% in 20161. The agriculture sector growth, except for 2008, is still far below GDP growth. The average growth rate for the agriculture sector during the period 2006–2014 was 3.9% per annum, and it decreased to 2.9% in 2015 and then increased to 3.0% in 20162
2. Agriculture contributes significantly to the socio-economic growth of Tanzania. Smallholder farmers (including livestock and fishery) dominate production, with more than 90% of cultivated land. The sector provides about 77.5 % of employment; provides livelihood to more than 70 % of population, 29% of GDP; 30% of exports and 65% of inputs to the industrial sector (URT 2014). However, in 2016/17, the sector contributed 29.1% of the country’s GDP (this is high as compared to 23% in 2014 (FYDP 2015/16), 65.5% of employment (NBS 2017) and food self-sufficient level decreased to 123% compared to 125% (2014/15). This shortfall could be contributed by scarcity of rainfall among other reasons.

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