Tanzania's monthly food reserves have surged to nearly a ten-year high, fueled by bumper harvests of cereals and proactive government measures to procure crops from farmers at market prices. According to the latest monthly economic review by the Bank of Tanzania (BoT), the National Food Reserve Authority (NFRA) reported a food stock of 326,172 tonnes in February, marking the highest level since June 2015.
This substantial increase in food reserves signals a positive trajectory for economic stability, as emphasized by Dr. Hildebrand Shayo, an economist and investment banker. Dr. Shayo highlighted the pivotal role of ample food reserves in curbing inflation, stating, "The higher the stock, the better the stability of commodity prices, considering the significant weight of the food basket in calculating the consumer price index."
Furthermore, Dr. Shayo underscored the strategic significance of a robust food reserve in mitigating the impact of natural disasters, thereby safeguarding the country's foreign currency reserves. He emphasized that a surplus in food purchases not only benefits local farmers but also curtails instances of food smuggling, contributing to national economic resilience.
The burgeoning food stock also presents export opportunities, thereby bolstering foreign exchange earnings. Dr. Robert Katikilo, an environmental scientist and economist at the University of Dar es Salaam, emphasized the broader implications of a thriving agricultural sector on economic growth. "A robust food reserve contributes to increased GDP through improved farmer livelihoods and tax revenues generated from the food value chain," Dr. Katikilo remarked.
The BoT's monthly economic review highlighted the positive impact of abundant food supply on inflationary pressures, with food inflation remaining relatively low at 1.8 percent in February. This stability in food prices, coupled with a downward trend in essential food crop prices, has contributed to overall economic stability.
Moreover, the report indicated a steady inflation rate of 3.0 percent over the past three months, attributed to ample domestic food supply and reduced imported inflation. However, core inflation experienced a slight uptick to 3.7 percent, primarily driven by adjustments in domestic energy prices.
The monthly increase in food reserves by 20 percent from January to February underscores the sustained efforts to bolster food security and economic resilience in Tanzania.
In conclusion, Tanzania's burgeoning food reserves stand as a testament to the government's commitment to fostering economic stability and ensuring the well-being of its citizens amid evolving global challenges.