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Tanzania cautioned of the 'Dutch Disease' threat to agriculture


BOFYA HAPA CHINI UONE VIDEO YA KIKUBWA CHUMBANI =>


 DISCOVERY of massive gas reserves in the southern regions should not be 
allowed to jeopardise agriculture lest the country suffers from the ‘Dutch 
Disease’.
Ministry of Agriculture, Livestock and Fisheries advisor Prof David Nyange 
on Tuesday cautioned African governments which have discovered oil and gas 
to take precautionary measures to ensure that human capital does not 
target the extractive industries only.
Speaking on the sidelines of a two-day Agribusiness Congress of East 
Africa, being held in Dar es Salaam, Prof Nyange said that countries such 
as Ghana, Mozambique, Tanzania and Uganda whose economies are 
traditionally dominated by agriculture, stand high risk of ignoring this 
vital sector. 
The term ‘Dutch Disease’ was coined in 1977 by The Economist to refer to 
the decline of the manufacturing sector in The Netherlands after the 
discovery of the large Groningen natural gas fields in 1959. 
Prof Nyange disclosed that discovery of such massive resources tends to 
raise public expectations but unfortunately cannot automatically create 
jobs or wealth.
“Oil and gas revenues could be invested in sectors with the potential to 
promote broad-based growth such as agriculture and light manufacturing,” 
he advised.
He stressed that because 75 percent of the population is employed in the 
agricultural sector, it is imperative that the sector gets massive 
investments to help fight poverty.
Prof Nyange said despite the impressive macroeconomic performance and 
overall economic growth for many years,the economy has not been all 
inclusive, hence leaving a third of the population living below the 
poverty line.
Permanent Secretary, Ministry of Agriculture, Livestock and Fisheries, Dr 
Florence Turuka said the government has taken various measures to enhance 
domestic, regional as well as international trade in commodities including 
agriculture produce.
Dr Turuka said Tanzanian farmers should take advantage of the available 
market opportunities under bilateral and multilateral trade pacts.
He pointed out that policies and measures have been put in place to ensure 
that imports of agricultural commodities do not discourage agribusiness 
activities locally.
“As government, we recognized the potential that agriculture holds for 
economic growth and poverty reduction. Small scale farmers are the largest 
investors in agriculture, thus we have to embrace small scale farmers as 
they are significant players in agribusiness,” the PS underlined.

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