The document discusses the political economy of policy and institutions in strengthening agricultural extension services in Tanzania. It analyzes how the relationship between policies and institutions has evolved over the past two decades, weakening due to policies being driven by international influences rather than evidence. The document concludes that Tanzania needs a comprehensive framework for agricultural extension that prioritizes resilience, farmer rights, and effective coordination between public and private institutions.
Background note - Session 4 - Agriculture and Food Security
Policy-Institution Nexus in Tanzania Agriculture
1. Symposium on Agribusiness Development and Managing Risk and Uncertainty in African
Agriculture
Paper: “The Political Economy of policy-institution nexus in strengthening agricultural
extension and advisory services towards resilient agriculture in Africa -A reflective case of
Tanzania”
Author: Donald Kasongi,
Governance Links Tanzania,
Maendeleo House,
P.O. Box 1923, Mwanza-Tanzania
Tel: +255 754 830 828
E-mail:donaldkasongi@yahoo.co.uk
Abstract:
The raison detre of agricultural extension and advisory service is to provide the best available
information, technology and inputs to practicing communities. Agriculture in Africa is going
through some complex transition with overwhelming prescriptions from multiplicity of actors
including science, policy, private sector, financial institutions and civil society. The
contemporary architecture of agricultural extension and advisory service is being bundled in a
capacity building box of market-driven competitiveness to respond to global value chain
demands , while struggling to cope with new normal driven by challenges particularly climate
change and its impacts . Despite the widespread desire for participatory transformation, it is less
clear what can influence real change to make African Agriculture competitive at scale. Focusing
on the trajectory experiences in Tanzania, the paper tracks the Political Economy of policy-
institutional interface, unearthing the evidence on how the confluence of these parameters has
evolved over time, and culminates in understanding what is currently driving change. The paper
ends with an inescapable conclusion that the policy - institution nexus has weakened over the last
two decades due to policy disfranchisement, surrendering the continent’s economic roots to ideas
and not evidence at scale. Overarching recommendations emerging from the analysis to inform
future policy directions on agricultural extensions and advisory services underline the need
comprehensive but context -responsive framework prioritizing resilience well aligned to
nurturing facilitation rather than technology transfer, making farmers rights a reality, clarifying
the residual role of governance in private sector interventions and leveraging effective
coordination of enabling institutions.
Key words:
Africa, agriculture, extension and advisory services, transformation, risks, framework
2. 2
1.0 Introduction
Globalization has profoundly altered the work of agricultural extension and advisory scientists,
intensifying communication and exchange on issues related to the evolution from subsistence
self-sufficiency agriculture to market oriented agribusiness .Contemporary development in
agriculture face numerous challenges, particularly:
*Political, economic and social systems linked too agribusiness have become increasingly
fragmented, rendering strategic initiates ever more complex
*The variety of values, attitudes and behaviour exhibited by agricultural extension and advisory
service staff has led to greater demand for inclusion of and participation of other sectors
*As the sectors through which these interests are represented continue to expand, systems of
agricultural governance become increasingly complex, more difficult to interpret and understand,
and less responsive to beneficiaries in the field.
*There is a growing risk that the quality of government-led extension services will erode as a
result of rising influence and decision making capacity of non-agricultural technical-
administrative experts calling for non-“business as usual” policy-institutional interactions.
For agribusiness as a convergence of agriculture and entrepreneurship, comparative analysis and
experimental methodological approach should lead to a more accurate assessment of how
different forms of extension services knowledge packaging and exchange can add value to field
practices. Confronted with these challenges, the multifaceted phenomenon of comprehensive
agricultural extension and advisory services require multi-tiered approach from local through sub
national to national and integration to regional and global systems. Research and training should
quickly align to this reality through translating the new architecture of technical support through
interventions.
With agriculture in Tanzania being diverse and extensive, it employs over 80 percent of the
population, and contributes about 28 percent of GDP and 30 percent of export earnings. The
range of agricultural commodities produced is wide-fiber (sisal, cotton), beverages (coffee, tea),
sugar, grains (a diverse range of cereals and legumes), horticulture (temperate and tropical fruits,
vegetables and flowers) and edible oils. Of the 44 million hectares (ha) of arable land suitable for
agriculture, only 23 percent, or some 10 million ha, is utilized. There is therefore a great deal of
potential for further agricultural development (IFC/World Bank, 2011).Although there appears to
be increasing emphasis on political commitment to support the rapid growth of agribusiness
policy evolutions have not been consistent with this canvassing aspiration. Unexpectedly, recent
policy frameworks including the Five Year Development Plan (2011/12-2015/16) and the
CAADP-led Tanzania Agriculture and Food Security Investment Plan (TAFSIP 2011/12-
2020/21 lack explicit articulation of such commitments. The Tanzania Agriculture and Food
Security Investment Plan (TAFSIP 2011/12-2020/21) indicates limited commitment to private
sector participation and a low level of investment by farmers and agribusiness enterprises,
accentuated by the reluctance of banks to lend for agricultural and agro-industrial investments. It
is therefore not surprising to see failures in institutions like those of tertiary agricultural training
and research mandated to make such policies work in practice.
3. 3
2.0 Objectives
Agricultural policy in Tanzania has been evolving to reflect macroeconomic policy changes from
centrally planned to a market led economy. The first agricultural policy that was formulated in
1983 during the centrally planned economy was reviewed in 1997 to accommodate macro and
sectoral policy reforms of mid-eighties and nineties that focused on market led economy. Since
then, a number of macro and sector specific reforms that have a bearing on agriculture have
taken place. These include fiscal and monetary policies at the macro level and a number of sector
specific policies .A draft National Agricultural Policy was produced in 2012.The current draft
policy seeks to address the linkages with other 20 sector and cross sector policies ,but fails to
demonstrate how on to adapt to the realities raised by the emerging risks .Available evidence
indicate that agricultural policy frameworks after the two decades of political independence have
largely been driven by prescriptions of international financial institutions and
bilateral/multilateral donors as summarized in figure1 below:
Figure 1: Major policy shifts in guiding agricultural transformation in Tanzania
Period Major policy driver Supported by Characteristics
Prior to 1988 Post-independence
centralized national
planning
Mainly Government
of Tanzania
transforming peasant
agriculture to large-scale
and improved agricultural
production
1989 National Agricultural and
Livestock Extension
Rehabilitation Project
(NALERP
International Fund for
Agricultural
Development
(IFAD)
(T & V) system
supply-driven than
demand-driven ( issues of
relevance, cost-
effectiveness,
ownership and
sustainability not
adequately addressed)
launched in
October 1996
National Agricultural
Extension Project Phase II
(NAEP II),
World
Bank-funded project
improve the
delivery of extension
services to smallholder
farmers for increasing
incomes and productivity,
while improving
relevance, cost-
effectiveness and
sustainability.
2007 to
2013..todate
Agricultural Sector
Development Programme
(ASDP)
World Bank GoT,
African Development
Bank International
Fund
for Agricultural
Development
(IFAD), EU, Ireland,
and Japan
Commodity Value Chain
and empowering
agricultural practitioners
in the field with
increasing participation
of sub-national and local
government levels
4. 4
The successes and failures of agribusiness ventures in sub-Saharan Africa point to key issues that
Tanzania should consider closely in its own strategy for how to best take advantage of its
agricultural potential for food feed, fibre and even fuel products. There are critical constraints in
the supply chain of Tanzania's agricultural sector that would pose a challenge to scaling up for
any type of agribusiness venture. By better understanding these constraints, the prospects for a
wide range of agribusiness-driven products could be greatly improved, and provide a clear set of
strategic priorities for Tanzania's agricultural development. One of the key drivers of change in
Africa's agricultural future will be the rising influence of agribusiness either from outside
commercial interests, or those which are 'home-grown' within the region. Tanzania is no
exception to this, and is already seeing considerable growth in investments from agribusiness
interests from outside Africa, from neighboring African countries, as well as from its own
domestic commercial sector. These interests extend to sectors like sugar and oilseeds, which
could be used for either food or biofuel-related uses. Understanding the critical constraints that
can hinder the profitability and long-term viability of these sectors is critical, if Tanzania is to
achieve success in its overall agricultural growth strategy, and in meeting the development goals
set out by the CAADP agenda (IFPRI, 2012) .The trend of Tanzania’s agribusiness is evidently
not promising as indicated by crop shares in the market in figure 2 below:
Figure 2: Tanzania-Agribusiness Market Value-BMI Market Value by Commodity (% of total)-
BMI (2014)
Arguably, while agricultural extension services in Tanzania have mostly been provided and
financed by the public sector, the landscape is changing with regard to the provision of extension
services in the country. Observations reveal that several non-governmental organisations (NGOs)
and farmer-led initiatives have, over time, supplemented extension service delivery of the public
extension services with cost-sharing, but these experiences have not been formally integrated
into the extension system nor has their potential to reduce public expenditure and improve
quality of extension service been considered (Rutatora & Mattee, 2001).As the government
continues to face funding difficulties to support the agricultural sector , it has been
reconsidering the possibilities of gradually divesting the public sector of extension, leaving the
private sector and users to take an increasing responsibility. The policy shifts rather than
evolution in guiding agribusinesses have largely been responsive to the source of financing
rather than being responsive to the changing needs of enterprises. The changing landscape is
with regard to the provision of extension services in the country in terms of actors in the field,
5. 5
approaches and management styles of extension services have far reaching implications for the
agribusiness whereby innovations are a prerequisite .At the same time, it is increasingly evident
that the extension services are being more and more dependent on donor funds either through
bilateral, multi-lateral and civil society initiatives and the corporates.
Political economy analysis is concerned with interactions of political and economic process in a
society , the distribution of power and wealth between different groups and individuals , and the
processes that create , sustain and transform these relationships over time .When applied to
agribusiness transformation , political economy analysis seeks to understand both the political
and the economic aspects of agricultural extensions , and how these combine to affect patterns
of power and vulnerability amongst in the field .As with any other entrepreneurial venture,
agribusiness will need to adopt to the plethora of phenomenal challenges, the overwhelming one
for the sub sector ben climate change. Global climate change has sobering implications for
natural resource management, food production and reliance on agriculture for poverty reduction
and economic growth (World Bank, 2010). In the tropics, older villagers and more experienced
farmers have noted changes in climate and weather for several decades, along with pressures
related to the intensification of resource extraction (Bryan et al., 2009; Ebi et al., 2011;
Gbetibouo et al., 2009). Before they can prepare for and respond to global climate change,
extension and advisory service providers must first understand the nature of climate change, the
associated challenges and potential impacts. The rapid 20–25% downturn in precipitation across
the West African Sahel that happened around 1970 and lasted through the 1990s provided a
glimpse of what the future may hold. Robust coordinated frameworks for both actions and
innovations form the fundamental departure point. Further, it is undeniable that supporting the
innovations of today in isolated sectors is not enough; the country needs to create ecosystems
that will support innovations emerging in unconventional ways across government and business.
The two challenges of poverty reduction through agribusiness and curbing environmental
destruction must be tackled together, yet in reality most policies focus exclusively either on
reducing poverty or protecting the environment. Income poverty can be reduced through
inclusive economic growth (benefiting the poor from the outset) or economic growth that
benefits the poor retrospectively through redistribution. Either way, economic growth is required,
growth that has yet to be achieved without further depleting natural re-sources. Where the
economy grows, the environment suffers. At the same time, environmental protection measures
can have extremely positive secondary effects for the poor. Continental impacts vary
significantly due to the diversity of environments across Africa, and there are many places and
people with a high degree of adaptability and resilience to a range of climatic conditions. The
differing impacts result from a variety of interconnected factors including socio-economic
conditions, agricultural technologies, and the natural resource base. Therefore, a variety of
options and opportunities exist for countries to increase their resilience. Meeting the challenges
posed by climate change requires a holistic response comprising assessment, use of appropriate
technologies and interventions, diversified livelihoods, and sustainable policies. This response
involves a spectrum of activities; including those implemented at Field and farm level, Extension
and research level and Policy level (CAADP, 2011).
6. 6
In Tanzania, the impacts are unfolding at unprecedented and devastating rates. The changes
have adverse effects economically, socially and environmentally. This has far reaching
implications not only to the livelihoods of Tanzanians but also to the economic and social
development of the country. So far, some progress has been made in developing a national
response to climate change in Tanzania. The national climate change strategy - 2012 provides
guidance for many of the implementation. However, there is no evidence on how the co-
ordination of sector-responses and support to local and sub national levels in building local
competencies and ensure that climate change aspects are incorporated in development policies.
3.0 Ideas, Innovations and Justifications
Implementation of the Millennium Development Goals coincided with emerging challenges
which escaped the eight goal framework .How best to address climate change has been an
important part of the debate around a new set of Sustainable Development Goals (SDGs) within
the global Post-2015 Development Agenda. International trade inclusive of agribusiness will be
crucial to this scaling up process. Carefully designed trade policies in synergy with other policy
instruments can encourage innovation and provide larger markets for agriculture-related
produces and products. They enable value chain actors to invest in producing at a greater scale,
which lowers the cost of each player .Fostering innovation-driven entrepreneurship in the
country requires a comprehensive view of the entire entrepreneurial life cycle. Innovation-Driven
Entrepreneurship and the conditions for scalable entrepreneurship is conveniently divided into
three phases - Stand up(Promoting the attitudes and skills required to mobilize agricultural
entrepreneurs with both the desire and the ability to create scalable entrepreneurial venture), Start
up (Gathering the resources to start a business with a particular focus on access to capital for
entrepreneurs across the country) and Scale (enabling ventures to scale, with a particular focus
on collaborations that simultaneously improve the innovation capacity of all partners to create
growth and jobs across the country /regions).
With the cumulative effects of climate change, agricultural extension and advisory service
providers will increasingly need to assist vulnerable rural communities to mitigate risks of
further climate change by conserving carbon stocks, reducing carbon emissions, and helping to
sequester atmospheric carbon dioxide in trees and soil organic matter; adapt their livelihoods to
changes in weather patterns, and restore natural resources; and strengthen the resilience of
natural and human systems to withstand and recover from shocks(Brent Simpson and Gaye
Burpee ,2014). It is evident that interest in prospects for policy processes that contribute to
development, climate change adaptation and mitigation, known as ‘climate compatible
development’, has been growing in response to increasing awareness of the impacts of climate
change. The complex political economy of climate compatible development in agribusiness has
received comparatively little attention in climate change literature, in agribusiness support
institutions and policy processes.
In Tanzania , despite the very significant increase in the national budget allocation for climate
change-relevant activities from TZS 392 bn in 2009/10 to TZS 896 bn in 2012/13, significant
growth in budget was driven by an increase in donor funding that was recorded on-budget , and
have not catalyzed delivery of effective climate change mainstreaming o at local level .To
respond to the breadth of adaptation challenges extension and advisory service providers will
7. 7
need to modify strategies and operational frameworks for engaging rural populations through
systems and not sector-based thinking ,work with groups of people at appropriate scales through
iterative cycles of experimentation and learning as they begin to work with rural communities in
testing high-potential innovative adaptation practices where risks are low, overhaul and
significantly upgrade extension and advisory education and training curricula and training
programs so that field and management staff members are prepared for the risks of climate
change, maximize use of advanced information and communications technology (ICT),advocate
for supportive policies and institutional frameworks from national through sub national to local
levels.
4.0 Conclusions and recommendations
Tanzania’s structural transformation cannot take place without investment in infrastructure,
agriculture, skills training and education, and broader engagement with the wide range of actors
in the market. As the Government of Tanzania seeks to combine the agricultural policy with
trade-related frameworks, balancing the multi sectoral, multi-actor objectives is difficult and
often involves trade-offs. The policy - institution nexus has weakened over the last two decades
due to policy disfranchisement, surrendering the continent’s economic roots to ideas and not
evidence at scale. Policy adaptation requires iterative and seamless engagement with relevant
institutions through Systems Thinking (responding to and anticipating linkages between system
components), applying broad principles that achieve multiple objectives Technology Transfer
(Lessons from the past, and from other places and the innate adaptive capacities (relying on
farmer’s abilities).
In order to achieve a comprehensive framework for agricultural extension and education aligned
to rapid transformation of agribusiness , it is recommended that policies should prioritize
resilience well aligned to nurturing facilitation rather than technology transfer, making farmers
rights a reality, clarifying the residual role of governance in private sector interventions and
leveraging effective coordination of enabling institutions. Within the country context, this
policy-institution nexus implies prioritizing required skills relevant to local skills development
in agribusiness ,adopting good practices from sector-wide approach within the agriculture sector
with stronger linkages to tertiary education ,clearly defining partnerships in agribusiness at local
level and beyond , dissemination of evidence-based recommendations , focusing on measuring
results adoption to a differentiated approach commensurate with the level of local development.
8. 8
References
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change in Ethiopia and South Africa: Options and constraints. Environmental Science
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2. BMI (2014).Business Monitor International. April 2014: Tanzania Agribusiness Report
Published 02 April 2014
3. IFC/World Bank, 2011: The Agribusiness Innovation Center of Tanzania: Scaling value
added post-harvest processing agribusinesses
4. IFPRI,2012.Lessons for Tanzania's agribusiness sector and prospects for bioenergy
products
5. Brent Simpson and Gaye Burpee ,may 2014: Modernizing extension and advisory
services Brief # 3
6. Rutatora ,D.F and Mattee A.Z(2001) :Major Agricultural Extension Providers In
Tanzania
7. World Bank. (2010). World development report 2010: Development and climate change.
Washington, DC: World Bank.
8. (IFC/World Bank, 2011): The Agribusiness Innovation Center of Tanzania: Scaling value
added post-harvest processing agribusinesses)
9. CAADP (2011). Comprehensive African Agricultural Development Programme -
Vulnerability Assessment Methodologies for Adapting African Agriculture to Climate
Change Factsheet.