Agricultural Markets Development Trust 2016-2025

TThe report, field visits reviews and other communication has provided a satisfactory information for assessing the progress of the implementation of market facilitation work according to the agreed work plan and budget. The assessments shows that AMDT achieved annual 2023 targets. Some examples of results achieved are as follows: Increase in incomes: 87,500 smallholder farmers and enterprises reporting increased and sustained incomes as the result of programme activities: estimate 63,450 SHFs who received business development services reported an increase in income, equivalent to an achievement rate of 72.5%. on policy and regulatory reforms: Through Trust facilitation, the business and producer organizations have undertaken the following advocacy initiatives on the following issues: a. Advocated for continued protection of domestic sunflower industries through tariffs until they become competitive. b. Facilitated the formulation of the National Pulses Strategy by supporting the Tanzania Pulses Network (TPN) to organize stakeholders engagements with Ministry of Agriculture, and the Parliamentary Committee on agriculture. The engagements were instrumental in a roadmap for the pulse subsector. c. AMDT management undertook additional initiatives, including engagements with Parliamentary committees to advocate for the policy reforms regarding market systems of pigeon pea and sunflower value chains. Throughout the year four improved Climate Smart Agricultural practices and technologies were introduced i.e., 1) efficient water management, 2) soil management and 3) crop management 4) post-harvest handling practices were disseminated benefiting 106,999 Small Holder Farmers (38,072F, 68,927M) and 30,626 youth (12,419YF, 18,207YM), which is a 102% achievement. Technology and Extension Services: In Tanzania extension services has for long time been a free service and regarded as the responsivity of the state. But extension government services have been unreliable because of various reason especially lack of staffing/manpower and funding and therefore the question can be 'will the farmers be willing to pay for the services if available commercially from private providers'? AMDT has been regarding this as an emerging systemic change in Agricultural Extension Market System. Various innovations which were piloted continued to be tracked and two notable models of private extension services delivery are recorded and continue to be monitored: 1) embedding the extension services as part of product offer i.e. inputs (seeds, fertilizers etc.) and technology (ploughs, planters, storage bags etc) suppliers providing extension as part of selling their inputs and 2) buyer (off taker) extension service delivery model to ensure quality and quantity. Commercial Linkages: The models tested are Contractual farming and linkages to financial markets. The financial services are the least accessible by smallholder farmers due to the risk perception of commercial banks in Tanzania. But the appetite emerges when other embedded markets systems are pro-poor services are proven to be working as a full market system package around the farmers e.g contract farming arrangement, business development services, insurance etc. The Trust has seen the interest of other key players such as Tanzania Agricultural Development Bank (TADB) who have shown interest to partner with AMDT in reaching out more smallholder farmers with access to finance using the AMDT market facilitators as intermediaries. Other commercial banks and financial institutions including PASS are showing more interest to provide credits to the emerging SME especially processors in the Southern Highland regions of Tanzania. The report has an example of a farmer, Sophia Mwanandenga, a female sunflower processor based in Mbeya City, who accessed Tshs 180 million because of the contractual arrangement with sunflower producers assuring the source of raw materials. It is reported that by harnessing the models, at least 50% of sunflower value chain actors access finance. Business Enabling Environment: MSD programming requires favorable and stable pro-business policies and regulatory frameworks. Policy analysis and advocating the changes is among the key AMDT intervention areas. The activities have been mainly around consultative meeting and workshops with agribusiness actors and stakeholders on one side and the government authorities on the duty bearers side. It is reported that AMDT work is recognized especially on the key role in addressing the prevailing shortages of edible oils in the country. As the result AMDT visibility and the easy of securing the audience of some key government figure with decision influence such as Prime Minister, minister for agriculture and the respective parliamentary committees. Assessing the report however, the PIC meeting advise to AMDT was rigorously analyzed the political economy of agricultural markets in Tanzania and come up with concrete and prioritized policy issues to bring on the table when they meet with various levels of policy makers. events. This is a weakness that AMDT need to need to improve going forward.

The Governments of Sweden, Denmark, Switzerland, and Ireland through their bilateral development cooperation in Tanzania came together and established the Agricultural Markets Development Trust (AMDT) in 2014. The Trust was set up as a long-term independent facility facilitating public and private market actors to respond to barriers in selected agricultural Value Chains (VCs). The primary goal is to increase and sustain the incomes of poor through empoyment opportunities in agricultural value chains in Tanzania. The outcome goal is to enable the target groups to take advantage of more inclusive, resilient, and competitive market systems. AMDTs intervention logic starts from the premise that commercially incentivized market systems are one of the vital pathways to more sustainable and resilient approach in fighting against income (RESOURCES) and other dimensions of poverty. This is even more important for the poor rural based population, dependent on agriculture for their livelihood. Therefore, systemic change is required to allow the poor to sustainably gain from participating in the markets. This is based on approaches of making the markets (in agrarian dominated economy such as Tanzanian) to work for the poor (M4P). AMDT is considered as a facilitator for M4P -a systemic development approach. It works through other institutions, considered as Market Facilitators. The facilitators works with stakeholders to identify systemic constraints in particular value chains, prioritise/rank them and devise commercially/market driven solutions. In turn, the Market Facilitator identifies the ideal Market Actors (normally private sector enterprises, government agency, or producer organizations such as cooperatives etc.) to intervene in changing the systems. The approach promises greater efficiency as market actors have a lasting commercial interests and can provide sustainable solutions. For example, the market for edible oil in Tanzania, AMDT has selected interventions in sunflower value chain: the demand is very high locally and in export markets. Several market constraints are identified and prioritized for which AMDTs M4P model is working on the market/commercially motivated solutions from various market actors (business enterprises and farmers). From the on-farm sunflower production, the constraints have been in improved seeds, mechanization and extension services while on post-harvest markets section of the value chain, aggregation and linkage logistics with the processors has been facing the challenges including disorganization. Through its interventions, AMDT aims to deliver five key outputs: 1. Inclusive business models which address systemic constraints while exploiting pro-poor growth opportunities. 2. Innovative pro-poor productive assets and services targeting constraints of a large majority of the poor. 3. Improve coordination, knowledge, and practice of inclusive markets development through M4P approaches in agricultural markets in Tanzania. 4. Enhance capacity for evidence-based dialogue and advocacy targeting inclusive business reforms. Increase availability and adoption of new or improved climate smart technologies and practices specifically targeting constraints faced by agricultural enterprise of the productive poor.