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Reforming Tanzania's tea sector: a story of success?

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  • John Baffes

Abstract

Tea, one of Tanzania's major export crops, contributes about $30 million to the country's export earnings and provides employment to some 50 000 families. Despite the sector's early success, nationalisation of two estates along with neglect of the smallholder sector made it clear that only broad-based policy reforms would revive the sector. Reforms in the tea sector started much earlier than reforms in other export crop sectors. Furthermore, they were undertaken, and hence owned, by the government and the industry. The reforms have been by and large successful. There has been considerable supply response, tea quality has improved, and the research system has been very successful in developing and disseminating useful research findings to both estates and smallholders. However, some issues must be addressed, namely excessive taxation, over-regulation, and the trade policy environment.

Suggested Citation

  • John Baffes, 2005. "Reforming Tanzania's tea sector: a story of success?," Development Southern Africa, Taylor & Francis Journals, vol. 22(4), pages 589-604.
    • Handle: RePEc:taf:deveza:v:22:y:2005:i:4:p:589-604
    DOI: 10.1080/03768350500322628
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    1. John Baffes, 2004. "Tanzania’s Tea Sector : Constraints and Challenges’," World Bank Publications - Reports 9677, The World Bank Group.
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