Tanzania's agricultural sector, which employs most of the country's workforce and ensures food security, continues to underperform despite decades of policy reforms and investments.

Two main challenges—insufficient growth rates and stagnant productivity—are preventing the sector from becoming a key driver of economic transformation.While agricultural GDP grew at an average of 3.5% annually between 2006 and 2016, this falls short of the 6% target needed for structural change.Low productivity remains a critical issue, with crop yields far below potential.Smallholder farmers face limited access to modern technologies like improved seeds, fertilizers, and mechanization, hindering productivity gains.Medium-scale farmers, though a minority, contribute significantly to land cultivation and demonstrate higher yields through better practices.

The shift of labor from agriculture to non-farm sectors is also creating spillover effects, improving access to markets and services for smallholders.

Addressing these challenges requires accelerated tech adoption, stronger extension services, and policies supporting all farmers to enhance competitiveness.