Arusha. Tanzania’s agricultural export sector faces a major policy shift following a sharp increase in fees for phytosanitary certificates, essential for exporting agricultural produce.
The Tanzania Plant Health and Pesticides Authority (TPHPA) has implemented a fee hike of over 460 percent, raising concerns among exporters about the industry’s competitiveness.
A phytosanitary certificate verifies that agricultural exports have been inspected and meet pest and disease regulations of the importing country.
As of January 2025, the cost of obtaining these certificates has surged from Sh58,347 per container consignment to Sh331,320. The new structure includes an inspection fee of Sh201,320 and a phytosanitary export certification fee of Sh130,000 for consignments exceeding 1,000 kilograms.
“The increase is unsustainable for many in our industry,” said an anonymous exporter. “It affects pricing and our ability to compete globally. We urge the government to reconsider or introduce mitigating measures.”
But TPHPA director general Joseph Ndunguru defended the increase, citing the need for improved services.
“The new fees ensure compliance with international standards,” he said, adding that the previous rates, set in 1996, no longer supported the Authority’s operations.
Prof Ndunguru said TPHPA has acquired five High-Performance Liquid Chromatography (HPLC) machines, enhancing laboratory capacity. The upgraded facilities allow testing of up to 2,000 crop samples weekly, reducing the need for exporters to send samples abroad.
“These improvements are crucial for issuing accurate phytosanitary certificates, ensuring market access and maintaining Tanzania’s reputation.”
But exporters say small and medium-sized enterprises (SMEs) are particularly affected.
Some exporters are, however, reluctant to speak out for fear of opposing government policy. One horticultural exporter reported a cost surge from Sh1.4 million to Sh7.3 million for 29 shipments, significantly increasing export costs.
The fee hike also affects non-container shipments processed at airports. Previously, plant quarantine and phytosanitary services cost Sh45,900, but exporters must now pay Sh155,000 for consignments over 1,000 kilogrammes.
Exporters warn that these increased costs could undermine Tanzania’s market position. “Tanzania risks losing market share if this issue is not addressed,” said a prominent cashew nut exporter to Europe and the UAE.
The hike could negatively impact key export sectors, including horticulture ($569.3 million), tobacco ($517.1 million), cashew nuts ($422.8 million), oil seeds ($307.4 million), coffee ($295.5 million), and cereals ($273.4 million).
“The new fee structure contradicts President Samia Suluhu Hassan’s efforts to expand international markets for Tanzanian agricultural products and threatens foreign currency earnings,” said an investor.
Comparative regional fees highlight the disparity. In Rwanda, a phytosanitary certificate costs 200 Rwandan Francs (TSh364.1), in Uganda 5,000 Uganda Shillings (TSh3,348), and in Kenya 600 Kenya Shillings (TSh11,880). These lower fees give exporters in neighbouring countries a competitive edge.
Exporters remain concerned about the financial burden, urging the government to review the policy to safeguard the sector’s competitiveness.
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Tanzania: Samia Hands Over NBC’s 354m/ – Crop Insurance Compensation to Farmers Affected By Hailstorms
President Samia Suluhu Hassan, has handed over a cheque of 354m/- from the National Bank of Commerce (NBC) as compensation to tobacco farmers, who were affected by hailstorms during the previous farming season in various regions across the country.
Handing over the cheque in Dodoma, the compensation is part of the crop insurance service provided by NBC in collaboration with the National Insurance Corporation (NIC).
Furthermore, President Samia has also handed over health insurance coverage to members of the Lindi Mwambao Cooperative Union based in Lindi Region, through the Farmers’ Health Insurance service provided by the bank in partnership with Assurance Insurance Company.
While visiting the bank’s pavilion at the Nanenane Agricultural Exhibition and being received and briefed by the bank’s Managing Director, Mr. Theobald Sabi, she said: “This crop insurance is one of the crucial solutions in ensuring farmers have a reliable income, without fear of challenges such as natural disasters, including hailstorms.
“I call upon all farmers in the country to make the best use of this important opportunity by accessing these kinds of insurance services. I also highly commend NBC and all the stakeholders participating in this programme.”
Elaborating further on the crop insurance service, the Minister of Agriculture, Hussein Bashe, stated that it will help to recover the loss farmers incurred, especially in various calamities beyond their control.
Citing them as floods, fires, and hailstorms, which have significantly affected the well-being of farmers and caused some to be reluctant to invest in the crucial sector, Mr Bashe added: “However, our President, this step by NBC is just the beginning, as this is the second year since they started offering this service, and the results are already visible.
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“As the government, we promise to continue supporting the wider implementation of this service, with the goal of ensuring that this crop insurance service reaches more farmers.”
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On his part, Mr Sabi said that the farmers who benefited from the compensations are from 23 primary cooperative unions in the regions of Shinyanga, Geita, Tabora, Mbeya, Katavi, and Kigoma.
He added: “In addition to these insurance services, as a bank, through this exhibition, we have continued with our programme of providing financial education and various banking opportunities to farmers, alongside offering them various loans, including loans for agricultural equipment, particularly tractors, to eligible farmers.:
At the NBC booth, President Samia also had the opportunity to be briefed on the various services offered by the bank to the farmers namely crop insurance and health insurance services.
There, the President had the chance to speak with some of the beneficiaries of the services, including the Vice-Chairman of the Lindi Mwambao Primary Cooperative Union, Mr. Hassan Mnumbe, whose union has been provided with a health insurance card from the bank.
Source: allafrica.com
