Tanzania says needs $1.9 billion for farming

DAR ES SALAAM (Reuters) - Tanzania needs about 2.5 trillion shillings for a long-term government agriculture programme to increase fertiliser use, irrigation and use of high yielding seeds, President Jakaya Kikwete said.

More than half of the east African economy's 40 million people depend on agriculture for a livelihood. Most are small scale farmers and their productivity is often low due to lack of inputs such as fertiliser and good seeds.

"The realisation of the ASDP goals requires massive investments, close to 2.5 trillion shillings. Raising these resources has remained the single biggest constraint," Kikwete told the Tanzania National Business Council on Tuesday.

Tanzania's Agricultural Sector Development Programme (ASDP) aims to help small-scale farmers increase productivity by providing them with fertilisers and better quality seeds, as well as help improve their access to markets for their produce.

The programme, which started in 2003, also aims to improve farmers' production techniques. The government put the cost of the first seven-year phase at $315.6 million.

Kikwete said 75 percent of the money needed would come from local sources, but gave no period for when it would be raised.

Other contributors to ASDP include the World Bank, African Development Bank, Irish Aid, the Embassy of Japan, European Union and UN International Fund for Agriculture Development.

Tanzania has 44 million hectares of arable land, of which the government says about 10.8 million is in use.

Among other challenges farmers face in the country is poor access to credit and patchy infrastructure such as roads to transport their produce to markets.