MOROGORO — Tanzania’s Southern Highlands aim to increase annual rice production to 2.1 million tonnes by 2030 under a new commodity compact seeking to mobilise US$1 billion across the rice value chain.
The initiative brings together government institutions, farmers, millers, banks and development partners. Its priorities include irrigation, seed supply, storage, processing, financing and access to markets. The target covers rice-growing areas in Mbeya, Songwe, Iringa and Morogoro.
The compact identifies significant challenges to address. The corridor currently produces about 950,000 tonnes of paddy annually, while post-harvest losses are estimated at approximately 762,200 tonnes a year. Improving yields and reducing losses will be essential if the production target is to be achieved.
For businesses, the opportunity extends beyond farming. Irrigation equipment suppliers, seed providers, rice millers, warehouse operators, transport companies and packaging businesses could all play a role in a more integrated supply chain.
The compact also aims to improve links between farmers and buyers through arrangements such as contract farming and warehouse-receipt financing. These mechanisms can help producers access inputs and credit, although their effectiveness will depend on implementation and fair, reliable commercial agreements.
The target is ambitious, and the agreement itself does not guarantee that the full investment will materialise. Progress will depend on financing, infrastructure, productivity improvements and whether farmers can reach reliable markets at viable prices.
