Tanzania Can Boost Livestock Sector with Climate-Smart Strategies: World Bank Report

Despite Tanzania’s large livestock population, climate-related risks and insufficient investments have hindered the sector's growth and international competitiveness.

Tanzania stands to significantly enhance the economic contribution of its livestock sector through a bold and comprehensive plan emphasizing climate-smart strategies and innovations, according to a new report by the World Bank. Despite Tanzania’s large livestock population, climate-related risks and insufficient investments have hindered the sector's growth and international competitiveness.

The 21st Tanzania Economic Update, titled Harnessing the Opportunity for a Climate-Smart and Competitive Livestock Sector in Tanzania, recommends an investment of $546 million in public funds over the next five years. This annual investment of approximately $109 million represents a fivefold increase over previous budgets and a 50% increase from the 2023/24 budget.

“The demand for livestock products has risen over the years due to urbanization, income growth, and changing lifestyles and diets. This has led to increased consumption which presents an important opportunity and risks for the sector,” said Nathan Belete, World Bank Country Director. “There is a real opportunity to capitalize on the growing internal market while simultaneously exploring avenues for export expansion for sectoral growth and international competitiveness in a sustainable and climate-smart manner.”

Tanzania boasts one of the fastest-growing livestock populations in Africa and the world, with an estimated 36.6 million heads of cattle, making it the second largest cattle population in Africa after Ethiopia. This represents 1.4% of the global cattle population and 11% of the African total. The country also has substantial populations of sheep, goats, chickens, and pigs, ranking it among the top ten on the continent in terms of overall livestock size. The sector provides income-generating opportunities throughout the value chain, employing 33% of the population, or 4.6 million households. However, Tanzania's exports remain below their potential, highlighting challenges in fully capitalizing on the sector's economic potential to generate jobs and reduce poverty.

The report highlights that Tanzania’s pasture-based livestock sector faces serious challenges due to climate change, including erratic rainfall and higher temperatures. Endemic livestock diseases further constrain the sector, impacting animal health, productivity, and market access. Structural and institutional challenges intersecting with climate risks hamper productivity and competitiveness, while the disproportionately low public funding for the sector hinders investment in essential research, extension services, and infrastructure.

Globally, the livestock sector, including Tanzania's, is a major source of greenhouse gas emissions, particularly methane, which significantly contributes to climate change. Despite this impact, funding for methane reduction efforts is minimal, posing challenges to achieving climate change mitigation goals while ensuring food security.

“Despite the various challenges, the sector has strong growth potential and plays an important role for Tanzanian livelihoods,” said Ernest Ruzindaza, World Bank Senior Agricultural Economist and co-author of the report. “The country's strategic location with sea access and borders with seven countries makes it well-suited to meet regional and global demand for livestock products. Its diverse indigenous livestock breeds cater to various consumer preferences domestically and internationally and support the export of livestock genetics and biotechnology products.”

The report advocates for additional public investment, incorporating climate-smart interventions to reduce methane emissions by 13% and increase protein production by 29% over six years. The authors also recommend pursuing policies and investments targeting productivity, trade and value addition, climate adaptation and mitigation, and sector governance with these resources.

By addressing these issues, Tanzania can transform its livestock sector into a competitive and sustainable engine of economic growth, benefitting millions of Tanzanians and contributing to global food security and climate change mitigation efforts.