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Showing posts from May, 2021

INDUSTRIAL POLICY AND CASHEWNUT PRODUCTION IN TANZANIA

  Tanzania is the eighth among the largest growers of cashew nut in the world and ranks fourth in Africa. As one of the largest Cashew nut producers in Africa, Tanzania’s cashew nut exports provide 10% to 15% percent of the country's foreign exchange. Main production regions are Mtwara, Lindi, Coast as well as Ruvuma and Tanga. The country provides 20% of Africa's cashew nuts (2012, FAO). Cashew nuts have been grown on a commercial scale in the country since the 1950s, developing infrastructure and lack of jobs in the southern region, as a result cashewnut cultivation was highly favored.  The industry almost collapsed in the 1980s. This was largely due to, various government interventions in the harvest, marketing processes and the nationalization of cashew nut processing factories. Also Insufficiency of agricultural inputs and presence of low level of processing to meet critical volumes required in the international markets. Low level of diversification...

Tanzania and Benefits of AfCFTA' s Modalities for Tariff Reduction

The Africa Continental Free Trade Area, AfCFTA is widely seen as a crucial driver for economic growth, industrialization and sustainable development in Africa .The AfCFTA will be an opportunity for Tanzania as a less developing country in Africa to confront the significant trade and current economic development challenges such as; market fragmentation, smallness of national economy, over reliance on the export of primary commodities, narrow export base, caused by shallow manufacturing capacity, lack of export specialization, under-developed industrial regional value chains and high regulatory and tariff barriers to intra-Africa trade amongst others. AfCFTA lowers trade costs and allows consumers to access a greater variety of products at lower prices though Trade liberalization. Lower costs for imported raw materials and intermediate inputs increases competitiveness of downstream producers and promotes the generation of regional value chains. Trade liberalization also allows firms to a...