ADF / Tanzania: District Agriculture Sector Investment Project : Increases income of 500,000 rural households

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The ADF today approved the funding of the District Agriculture Sector Investment Project with a loan of 36 million Units of Account (US$ 54 million or 56 billion Tanzanian Shillings) and a grant of 7 million Units of Account (US$ 10.5 million or TZS 11 billion).

The project seeks to increase agricultural productivity and incomes of rural households in the project area. It will lay the foundation for the preparation and implementation of more effective Village Agriculture Development Plans by creating and strengthening the capacity of large numbers of participatory farmer groups and networks so as to increase production, productivity and profitability. It also seeks to strengthen the capacity of local government authorities concerned with the facilitation, preparation and execution of Village Agriculture Development Plans.

The project consists of four components:

- FarmerCapacityBuilding;

- Community Planning and Investment in Agriculture;

- Support to Rural Financial Services and Marketing

- Project Co-ordination and Management.

Some 250,000 farmers in 10,000 participatory farmer groups with an average of 25 members each, will be trained in technical, organizational and managerial subjects through participatory adult education methods.

Furthermore, 25 districts will have the capacity to plan, manage and monitor District and Village Agricultural Development Plans; (25 District Agricultural Development Plans will be prepared and implemented as well as 750 Village Agricultural Development Plans including agriculture related micro-projects, small infrastructures and agricultural technology investments. The project will also lead to improved market access through the improvement of 500 km of feeder roads and improved water control for agriculture through the construction of 25 water harvesting structures.

Some 200 sustainable Savings and Credit Cooperatives (made up of 8,000 Savings Groups) will be operational, with each cooperative having on average 1000 members and TZS 40 million in savings after six years of operation, in addition to the marketing information network functioning in 25 districts.

The African Development Bank Group operations in Tanzania started in 1971. To date, its cumulative commitments in the country stand at US$ 1.2 billion (TZS 1,300 billion) in 89 operations.

Project Brief

- Sources of financing: ADF + Government + Beneficiaries

- Estimated start-up date and duration: July 2005, 6 years

- Executing Agency: Ministry of Agriculture and Food Security (MAFS), P.O. Box 9192, Kilimo 1, Dar-es-Salaam, Tanzania, Tel: +255 (0) 22 2862064, Fax: +255 (0) 22 2862077, E-mail:

- Procurement of Goods and Works: National Competitive Bidding (NCB), and National/Local Shopping

- Consultancy Services: Design, supervision of civil works, studies and provision of training (competition on the basis of a shortlist of firms/individuals).


Chawki Chahed Phone: +216 71 10 27 02