An Action Plan for Developing Agricultural Input Markets in Tanzania

the “centerpiece” of SO 5 will be the development of
producer associations to strengthen farmers’ productive
and business capacities. Improved input supply
resulting from the implementation of the action plan
will help producers associations by supplying inputs
on time and at cost effective prices. The second activity
identified by SO 5 to support the achievement of its
objectives is improving the policy and regulatory environment
in order to increase market efficiencies. The
proposed actions on improving policy environment and
regulation for input markets will strengthen the efficiency
of output markets and producers associations
by reducing transaction costs.
Government Commitment and Donor Support
A strong commitment will be needed from the government
for the implementation of the action plan. Such
a commitment will manifest in removing existing dis-
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tortions and misperceptions and creating a favorable
environment for the private sector participation in input
markets. Support for building institutional capacity
will also be needed. Above all, the government has
to work with donors to raise the necessary resources to
implement the action plan.
Resource Requirements
Tanzania will need a 5-year program to implement
the core recommendations of the action plan for market
development. A preliminary estimate of the resources
needed is indicated in Table 5. The implementation
of the action plan will require $11.3 million in
operating costs and $18 million in capital funds—$15
million for AIIF and $3 million for ABDF. Both of these
funds will be used for sharing risks among various
stakeholders.
Table 5. Estimated Resource Requirements for Implementing the
Action Plan: 5-Year Program
Source: Action Plan Team Estimates.