Dar, Oslo vow to enhance economic, trade relations

NORWAY remains key development partner for Tanzania, particularly in promoting agricultural sector to enhance its contribution to the country’s development. Agricultural sector that employs over 70 per cent of the workforce contributes about 25 per cent to the Gross Domestic Product (GDP), 34 per cent of foreign exchange earnings and 125 per cent of food sufficiency.

The Norwegian Minister for Industry and Trade Ms Monica Mæland said at the launching of Yara Fertiliser Terminal in Dar es Salaam on Wednesday that Tanzania’s commitment to agricultural sector development has been impressive making it attractive to global investors due to its huge potentiality.

“I hope Yara will continue to contribute significantly to agriculture growth and Tanzania remaining committed to creating friendly business environment,” she said. She said Yara’s investment is increasing the flow of Foreign Direct Investment to Tanzania.

Norway is also investing in oil and gas sectors. Launching the fertiliser facility, President Jakaya Kikwete said one of the biggest headaches was to use the scarce resources to import fertilisers to cover the deficit thus, “Yara is a welcome development and solution to the problem,” Yara’s facility and network will benefit smallholder farmers by getting fertilisers at an affordable price in the rural areas thus increasing agriculture productivity.

Such efforts have seen increased use of fertilisers to 13kg per hectare in 2013 from only 8kg in 2005. The figures above continent average use of fertilisers of 5kg per hectare but below global average.

Yara is an important partner in realising green revolution in Tanzania. Apart from 50,000 tonnes manufactured locally from Minjingu fertiliser factory, the year 2015 has seen the imported fertilisers increasing to 270,000 tonnes.

Agricultural sector fertiliser consumption has increased from below 100,000 tonnes before 2010 to about 200,000 tonnes per year at present, thanks to the government’s initiative to grant subsidy and removal of taxes to the products.

The president and Chief Executive Officer of Yara International Mr Svein Tore Holsether said “The opening of the fertiliser terminal signals a turning point in Yara’s capacity to support agriculture growth in Tanzania.” Yara Tanzania currently supplies 120,000 tons of fertilisers annually to the East African region including a network of distribution outlets across the country.