Tanzania and the Japan International Cooperation Agency (JICA) have signed a loan agreement for the implementation of the Tanzania Agricultural Input Support Project (TAISP). The loan, worth 10 billion Japanese Yen equivalent to Tsh.172.2 billion, will be used to improve the production and productivity of priority crops, specifically rice, wheat, and sunflower. The inputs of seeds and fertilizers will be purchased for smallholder farmers in the target areas, contributing to strengthening the resilience of the food system and enhancing food security and nutrition. The project will be implemented in Arusha, Dodoma, Morogoro, Manyara, Kilimanjaro, Singida, Tabora, Songwe, Mbeya, Njombe, Shinyanga, Mwanza, Geita, Simiyu, and Katavi regions.
In addition, JICA has provided an additional financing of 150 million Japanese Yen, equivalent to Tsh. 2.6 billion to be extended to the Economic and Social Development Programme, aimed at reviving the Tanzania Fisheries Company (TAFICO). The grant funds will add to the 200 million Japanese Yen grant committed by the government of Japan through the exchange of notes signed on 27th December 2019, making a total of 350 million Yen Tsh. 6.1bn for the implementation of the Economic and Social Development Programme. The project is co-financed with the African Development Bank (AfDB) to the tune of 75.5 million US dollars equivalent to Tsh. 174.9 billion under the soft loan agreement which was signed on 18th August 2022.
Tanzania benefits from Japan's support, mostly in areas of agriculture, water, health and energy, transportation, urban development, good financial governance, and education through capacity building. The Japanese Ambassador to Tanzania, Mr. Yasushi Misawa, has assured that his country through the JICA will continue to cooperate with Tanzania in various sectors including the blue economy, capacity building, and agricultural as well as business environment improvement.
The funds provided by JICA will enable TAFICO to buy a 22-meter-long fishing vessel and purchase two vehicles. In addition, the project will build a cold warehouse for storing fish, purchase and install ice plants, and will be executed one year from now. The Deputy Permanent Secretary in the Ministry of Agriculture, Dr. Hussein Mohamed Omar, stated that the funds will help to facilitate access to agricultural inputs and bring relief to Tanzanians. He also mentioned that the agricultural sector has a great contribution to the country's economy, contributing 26.1 percent to the national income (GDP) in 2021. The agricultural sector also provides 65 percent of employment in the country and 65 percent of industrial products. However, the sector is faced with various challenges, including the effects of Covid-19, the war between Ukraine and Russia, and climate change. The Tanzanian government established the Tanzania Agricultural Inputs Support Project to help facilitate the production of food crops in the country by strengthening the production systems to deal with the effects of climate change, Covid-19, and the Ukraine-Russia war.