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

Author: Baffes, John

Source: Development Southern Africa, Volume 22, Number 4, October 2005 , pp. 589-604(16)

Publisher: Routledge, part of the Taylor & Francis Group

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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.

Document Type: Research article

DOI: http://dx.doi.org/10.1080/03768350500322628

Affiliations: 1: World Bank's Development Prospects Group

Publication date: 2005-10-01

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