Tanzania, Dar es Salaam:
Zanzibar’s foreign earnings plummeted by 55 percent after price fluctuations and climate changes affected production and trading of cloves and seaweed which are key cash crops in the Island.
The Bank of Tanzania (BoT) data shows that the isles’ value of exported goods dropped to $19.4 million in the quarter ending September 2022, from $43.3 million earned in the corresponding quarter in 2021.
The amount of clove exports decreased by 62.3 percent to $14.94 million in September 2022 from $39.62 million, according to the BoT report.
The slowdown of earnings was a result of shrinking volume of the crop to 1,800 tonnes from 5,300 tonnes exported in 2021.
“The decline is related to the cyclical nature of the crop,” the central bank stated.
The clove price fluctuated to reach $10,963.3 per tonne in June this year before dropping to $8,184.2 per tonne in September this year.
As for the seaweed, the crop earnings had dropped by 11.7 percent by September this year to $1.09 million from $1.23 million the preceding year.
The crop volume during the period was also low by 32.1 percent as 2,100 tonnes were exported against 3,100 tonnes of 2021.
The impacts of ongoing unfavourable weather conditions are among the reasons that have affected seaweed production this year, according to the BoT.
From January to September 2022, Zanzibar produced 8,019 tonnes of seaweed, a slight decrease from 8,335.2 tonnes that were produced during the same period in 2021.
Speaking to The Citizen, public relations officer for Zanzibar State Trading Corporation (ZSTC), Ali Mohammed, said like any other agricultural produces, cloves and seaweed were vulnerable to weather changes in 2022, affecting their production levels.
“The crops yield was down compared to preceding recent years.
“There were also issues of market prices which are determined by the global markets and competitiveness from other producing countries like Madagascar,” he said.
Zanzibar’s large export destination for its spices is Asia to countries like India.
“In 2023, we plan to sustain quality and production levels so that we can boost our exports and remain competitive on the global level,” said Mr Mohammed.
On the other hand, Zanzibar’s receipts from the services sector had improved significantly as tourism activities recovered.
The BoT said during the review period, service receipts rose by 49.5 percent to $63.6 million compared with a similar quarter in 2021.
Tourist arrivals rose to 165,231 from 89,956 in the similar quarter in 2021 with tourists from Europe dominating at 64.3 percent, followed by Africa at 13.1 percent.
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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
