DAR ES SALAAM, June 2024— Tanzania's livestock sector plays a crucial role in providing livelihoods for millions of citizens, with considerable potential to also play a leading role in regional production and trade. The country’s cattle population of 36.6 million is the second largest in Africa after Ethiopia, representing 1.4% of the global cattle population and 11% of the African cattle population. Tanzania also has a large number of sheep, goats, chickens, and pigs, ranking it among the top ten on the continent in terms of overall livestock amounts.
Despite the sector's significance, the World Bank’s newly published 21st edition of the Tanzania Economic Update reveals that climate-related risks and insufficient public and private investment hinder its growth and international competitiveness. The report emphasizes the need for urgent public investment to capitalize on rising domestic demand and the growing need for livestock products while also aiming to expand exports.
In comparison to other countries in the region with equally large livestock populations, Tanzania's livestock sector makes a relatively small contribution to the country's GDP and agricultural GDP (AgGDP). In 2022, the livestock sector accounted for just 7.4% of GDP and 26.1% of AgGDP. This is lower than Ethiopia, where the livestock sector contributed 19% and 45% to GDP and AgGDP respectively, and Kenya’s 12% and 40%.
The livestock sector is a crucial source of employment and income in Tanzania, especially for the poorest rural households. It provides income-generating opportunities throughout the value chain from production to processing and marketing, employing 33% of the population or 4.6 million households. Livestock sales contribute to 13.8% of rural household incomes, with the poorest rural households obtaining nearly 20% of their income from such sales. The livestock sector also contributes considerably to national objectives such as food and nutrition security as well as gender equality.
Yet the sector is currently facing major challenges due to climate change such as unpredictable rainfall and higher temperatures. These climate-related issues affect water and feed availability and worsen competition for resources and land degradation especially in arid and semi-arid areas. They also interact with many economic and institutional factors in rural areas making it harder to access important resources like land, water, and fodder.
Livestock diseases further constrain the sector affecting animal health productivity market access inadequate infrastructure technical knowledge water supply services veterinary services market access difficult manage diseases integrate market leading many risks livestock producers traders despite making crucial contribution GDP very little public funding hard invest important things research extension services infrastructure
Both globally in Tanzania major emitter greenhouse gases particularly methane contributing significantly climate change Although crucial funding methane reduction limited emissions create challenges achieving climate goals ensuring food security
To set Tanzania's livestock sector on a path to sustainable development economic contribution report authors recommend public investment $546 million between FY24 FY29 This investment would represent fivefold increase over previous budgets % increase from budget
“We believe this is feasible given underfunding high absorption capacity,” said Emma Isinika Modamba World Bank Senior Agricultural Economist co-author “While it contributes substantial % GDP receives disproportionately low allocation Between expenditures directed towards amounted just %”
With such resources made available Update’s authors recommend series policies investments target productivity trade value addition adaptation mitigation governance Specifically they recommend:
Enhancing trade value addition which involve diversifying market opportunities improving linkages transportation infrastructure implementing effective safety regulations through One Health Approach
Prioritizing practices implementation strategies renewable energy solutions essential mitigate reduce carbon footprint
Strengthening governance improving institutional capacity adopting enabling policy reforms crucial ensuring effective promoting competitiveness An effective framework appropriate incentive mechanisms critical ensure sustainable practices greater private participation