Request for proposal for an individual consultant to design a Flagship on Agro-Industrialization for Markets, Jobs, Growth and Food Security in Tanzania

    1. Agriculture is an important economic activity in Tanzania accounting for about 29.1% of the Gross Domestic Product (GDP) and employs about 65.5% of the working rural population (URT, 2016). The sector contributes about 50% of the export earnings and provides 65% of all industrial raw materials (ASDP II, 2018). Agricultural sector in Tanzania is largely subsistence with minimal agro-processing activities in most of the regions. Currently, most agricultural products in Tanzania are marketed in their raw forms, while value-addition to agricultural products is mostly done on small-scale secondary level. The level of agro-processing infrastructure and facilities remains rather low which in turn contributes to high post-harvest losses.
    2. Value addition and agro-processing are key elements of increased agricultural commercialization, revenue and employment generation in rural areas, but also use of by-products in agro-processing for animal feed. They have strong forward linkages by providing additional market opportunities responding to high demands for processed products. Strengthening agro-processing activities in Tanzania would add value to the agricultural commodities (crop, livestock and fisheries) in terms of price and shelf life and aesthetic appearance.
    3. Markets for processed/ value added food products (such as, noodles, caned juice, refined edible oil, yoghurt, cheese, butter and others) are expanding in Tanzania but their supply is lower than the demand. Growing population, rapid urbanization, rising incomes and changing tastes and preferences in Tanzania have been contributing to the increased demand for such products. The mismatch between demand and supply for value added food products has resulted in an increased import of food commodities. For example, data from the ministry of agriculture shows that in 2019 the country has an estimated demand 700,000 MT of edible oils (of which 64% is palm oil, 30% sunflower, and 2% cottonseed), while the total domestic production in the same year is estimated at 210,000 MT. This supply is equivalent to 30% of the domestic demand. Such demand gap needs to be addressed by the government to ensure the country’s self-sufficiency in edible oil.
    4. Youth unemployment remains one of the key development challenges in Tanzania because Tanzania’s population is predominantly young. Each year the country experiences an increasing number of youths seeking for job in the market than the opportunities available. The unemployment rate amongst youth aged 15-24 years in Tanzania is 13.4% (Mcha, 2012) and is disproportionally high among young women (Agwanda and Amani, 2014 and Ndyali, 2016). Agricultural sector is one of the most viable potential source of employment for young people. Agro-industrilization is as an emerging source of employment for the youth. This is because youth have risk taking characteristics which makes them willing to take risks in value addition compared to other demographic segments.
    5. The Government of Tanzania (GoT) conceives industrialization as the main catalyst to transform the economy, generate sustainable growth and reduce poverty. The country has placed job creation and industrialization to the forefront of her agenda for development and economic transformation. The aim is to significantly increase industry’s share of employment and GDP as part of the Sustainable Development Goals. Industrialization in Tanzania is supported by several government strategic documents (policies, plans, strategies and declarations) including: the Sustainable Industrial Development Policy (SIDP) in 1996-2020, The National Agriculture Policy (2013), Agricultural Sector Development Strategy (ASDS) 2001, Development Vision (TDV) 2025), Integrated Industrial Development Strategy (2025), The Second Five Year Development Plan 2016/17–2020/21 (FYDP II), and Second Agricultural Sector Development Programme (ASDP II). Furthermore, in 2016, the President of Tanzania, His Excellency Dr John Pombe Magufuli declared industrialization as the main agenda of his government.
    6. The government envisages an important role for the private sector in leading investments to drive industrialisation. The ASDS points out the need to create enabling environment for private sector to invest in agricultural sector including agro-processing. The FYDP II also stresses the important role of the private sector and indicates what while the investments will be by the private sector the Government of Tanzania is expected to provide a conducive policy and regulatory framework, as well as land and supportive infrastructure for industrial development. The FYDP II further notes that private investment in agro-processing has the potential to generate employment, raise productivity, transfer skills and technology, increase competitiveness, substitute imports and enhance exports, and contribute to the long-term national economic development.
    7. The Alliance for a Green Revolution in Africa (AGRA) is committed towards supporting ASDP II. Building on existing its partnerships with the GoT through the Agriculture Sector Lead Ministries (ASLMs) and consistent with AGRA’s country support strategy for Tanzania, AGRA is supporting government priorities. The GoT requested a technical assistance to develop the above-mentioned flagship programme. This programme is directly expected to contribute to component 3 of ASDP II which focuses on Commercialisation and Value Addition and stimulate outcomes of other components (GoT, 2016).
    8. It is against the above background that the GoT, with support from AGRA, would like to hire services of an experienced individual consultant to develop a detailed flagship programme for agro-industrialization in Tanzania. The consultant should work in collaboration with a qualified partner (a second consultant) in the development of the flagship programme.
    9. The design of the programme should be done in consultation with the key agriculture stakeholders in Tanzania and should have four components namely :

      Component I: Increasing productivity of oil seed crops (sunflower and oil palm), dairy and tilapia sub-sectors;·
      Component II: Strengthening and establishment of agro-industries and support to agricultural marketing;
      Component III: Enabling Environment for the involvement of the private sector in agro- industrialization;
      Component IV: Support management and coordination for results.

 

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