Agricultural Sector Development Programme (ASDP) Financial Mechanism

The Agricultural sector in Tanzania, like the rest of the economy, is in transition from being a command to a market-based production system. The transition process started in the mid 1980s with the implementation of a structural adjustment programme. Despite some impressive achievements resulting from structural reforms (e.g. macroeconomic stabilisation and increases in agricultural production, exports and foreign exchange earned) rural poverty, food insecurity and disparities in income earnings prevail.

It is noteworthy that the agricultural sector dominates the economy. It is a major employer and contributor to Tanzania’s GDP. Therefore the Government of the United Republic of Tanzania (GoT) recognises the importance of sector specific interventions aimed at improving the welfare of the rural poor. To this end an Agricultural Sector Development Strategy (ASDS) has been developed through a participatory process to create an enabling environment for improving agricultural productivity and profitability, for improving farm incomes, for reducing rural poverty and for ensuring household food security. The ASDS specifies five areas of strategic focus: