Cotton Sector Reform in Tanzania
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Cotton Sector Reform in Tanzania had been adopted as a part of their economic reform to increase the profitability and productivity of the cotton industries.
In Tanzania, 48% of the total population, roughly 35 million, depended on the cotton industries. During the year of 1992 – 93, revenue from the cotton industries were declining. Moreover, by 2000, this sector’s contribution to Gross Domestic Product came down to 5.73% only because of the fluctuations of cotton’s market prices over the world. Therefore, marketing and processing of cotton was a major issue of the Tanzanian trade development agenda.
Reform Options:
- Reform endorsements for the activities of the Cotton Board based on input supply, quality enhancement and regulatory activities.
- Formation of a suitable environment for the cotton board so that it could coordinate the stakeholders to solve certain problems related with quality of cotton, credit supply and markets.
- Development of some special framework to form quality assurance institutions.
- Public coordination had to be enhanced to increase seed supply.
- The saving programs had to be made efficient through the enhancement in the stakeholders’ control over those programs.
Reform Process:
Through the collaboration with the World Bank and European Union the Tanzanian government started to review the activities of the Crop Board. The government started to improve the agricultural export performance that was an important visage of Tanzania’s poverty reduction program.
The Tanzanian government minimized the license fees and ceased the setting indicative prices to offer information regarding market for the whole season.
For cotton inspection attention had been given on ginneries instead of buying centers. The objective was to set the appropriate functions for the Cotton Boards based on the appropriate financing and administrative mechanisms.
The government minimized the Cotton Board’s role in the management program of the input voucher scheme and Cotton Development Fund.
Tanzanian government took a qualitative approach by consulting with the stakeholders to govern the arrangement for processing, marketing and producing cotton.
