EUROPEAN UNION

Speech for EU Ambassador Roeland van de Geer at the

launch of the EU Funded Agriculture projects under the
SAGCOT Initiative

(Beneficiaries FAO, Aga Khan Foundation, HELVETAS

Swiss)

[Check against delivery]

Honourable Deputy Minister for Agriculture, Dr. Mary Mwanjelwa

Country Representative, FAO, Mr. Fred Kafeero
Director of Programmes, AGA KHAN Foundation, Ms. Revealed Kataru
Country Director, HELVETAS Swiss, Mr. Shiva Prasad Aryal
Members of the Press
Dear Colleagues
Ladies and Gentlemen

Habari za asubuhi? (Good morning),

 Umoja wa Ulaya (EU) ni mshirika wa muda mrefu katika sekta ya kilimo

Tanzania/EU is a long-standing partner in the agriculture sector in
Tanzania with a current support exceeding EUR 140 million. Over the
past 20 years we have supported a number of different commodities such
as coffee, tea, horticulture, cotton and sugar, but also policy reforms and
research.

 Ninafurahi kusema, tunasaidia sekta ya mpunga Tanzania pia/I am

pleased to say that we are now also supporting the rice sector in
Tanzania which is one of the priority value chains identified in the
Government's new Agriculture Sector Development Programme II.

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 Rice, Mpunga, is the second most important food and commercial crop in
Tanzania after maize. It is among the major sources of employment,
income and food security for Tanzanian farming households.

 I am therefore honoured to be here today with representatives from FAO,

Aga Khan Foundation and Helvetas Swiss to launch 3 important rice
projects in Iringa and Morogoro supported by the EU for an amount of 4.5
million Euro (approx12.5 billion Tanzanian Shillings).

 While each project has had its own events in their respective regions
together with the local stakeholders, it is important to bring them together
and to show this consolidated support for the rice sector in Tanzania, with
a particular focus on support to the value chain post-harvest.

 The projects are in fact part of a larger financial contribution from the EU
to the Southern Agriculture Growth Corridor Initiative for Tanzania
(SAGCOT) amounting to 46 million Euro (approx. 128 billion Tanzanian
Shillings).

 The SAGCOT initiative is a public-private partnership dedicated to ensure

food security, reduce poverty, and spur economic development in
Tanzania’s Southern Corridor.

 Apart from supporting the rice sector, EU funding to SAGCOT has also
been provided to upgrade the Kidatu-Ifakara road to improve transport
links, construction of a new (220 kV/33kV) substation near Ifakara to
ensure reliable electricity supply and grid extensions, and support for the
protection of the Kilombero and lower Rufiji Wetland through community
based natural resource management.

 Despite the high potential for production in the SAGCOT region, the
agriculture sector remains constrained by a number of factors, such as
lack of inputs, insufficient irrigation, lack of affordable credit, fragmented
market chains, inadequate storage facilities, and high transport costs
caused by poor condition of the feeder roads.

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 The 3 rice projects funded by the EU will address some of these
challenges, in particular those associated with post-harvest losses and
value chain weaknesses. Today post-harvest loss amount to a staggering
40% of the harvest.

 In some instances, all the grains are lost, contaminated by fungus, or

spoiled by rain after harvest. Farmers lose much of their grain because of
poor postharvest management, outdated postharvest technology, and
poor and unhygienic storage facilities.

 The aim of these new projects will be to boost output, improve the value
chain of small holder rice farmers and increase their competitiveness.
This in turn will result in higher income and poverty reduction.

 While today we have a rice deficit in Tanzania, once we get the equation
right and address the bottlenecks in the value chain, there is a huge
potential not only to satisfy the local market but to tap into regional and
international markets. It also offers an opportunity for strengthening
commercial linkages and trade with the EU.

 We look forward to seeing the progress of the projects being launched

today and to witness their contribution to the successful implementation of
the National Agriculture Sector Development Programme ASDP II, soon
to be officially launched by the Government.

 I would like to express my thanks for the presence of everyone attending

this event today, demonstrating their commitment to ensuring the success
of these important initiatives.

 Kilimo oyeeeeee!!!!/Farming oyeeee!

Asante Sana