Tanzania has 44 million hectares of land suitable for agriculture, but only 10.8 million hectares are currently under cultivation, Prime Minister Dr Mwigulu Nchemba said while calling for investors to tap the country's agribusiness potential. Speaking at the Norman E Borlaug International Dialogue in Des Moines, Iowa, Dr Nchemba highlighted investment opportunities across the agricultural value chain, including crop processing and packaging, warehousing, cold-chain storage, transportation, digital services and financial services for farmers and traders. He said investment would help provide food and nutrition services while creating economic opportunities, and would benefit not only Tanzania but also the entire regional market of 170 million people across East and Central Africa.
The country has significant untapped potential for irrigation investment, with capacity to irrigate 29.4 million hectares but currently irrigating only about 727,280 hectares. The government has invested in irrigation schemes, seed production and programmes to encourage young people to engage in agriculture, livestock keeping and fisheries, Dr Nchemba said. It has also introduced tax and non-tax incentives to attract investment into the sector. The Prime Minister stressed that the private sector is essential to adding value to agricultural produce, expanding markets, creating jobs and strengthening food and nutrition security.
Technology companies see potential in Tanzania as a hub for agricultural innovation. Microsoft Chief Technology Officer for Research and Industry Dr Ranveer Chandra said artificial intelligence should be viewed as a tool to improve farmers' knowledge and decision-making. He noted that farmers make many decisions based on guesswork or personal experience without full information, and that AI could help them make better-informed choices about when to plant, harvest and irrigate crops, although making the technology affordable and accessible remains a major challenge. Tanzania is well positioned to become a regional hub for AI-driven agriculture given its strategic location and links to regional markets, Dr Chandra said.
Microsoft has undertaken several initiatives in Tanzania over the past decade. The company collaborated with the MADE Alliance to support digital payment systems for 50,000 sunflower farmers and partnered with Mawingu to expand telecommunications and internet access. Microsoft has also partnered with ABSA Tanzania and Women in Tech on a programme aimed at training 5,000 women in AI skills. Dr Chandra said AI can help increase farmers' incomes, improve productivity and reduce postharvest losses. During the discussion, CeluNova founder Adolfo Vidal Ruiz presented an alternative agribusiness opportunity: his company produces fibres from pineapple leaves for use in manufacturing toilet paper and kitchen paper towels.
For savers, borrowers, business owners and investors in Tanzania, these developments signal government commitment to attracting private capital into agriculture through tax incentives and infrastructure investment, which could create new financial and commercial opportunities across the sector.