Total importation of various cold storage facilities into Tanzania averaged USD 25,908,000 per year between 2016 and 2020, growing at CAGR of 5.2% (17). The country already has several commercial packhouses and collection centres, for example in Tengeru (Arusha), Njombe, Zanzibar, Kilimanjaro and Dar es Salaam (14).

Horticulture is the fastest growing industry within the agricultural sector with an annual average growth of about 11%. External market share has been increasing overtime. In 2019, total horticultural exports averaged USD 779 million, up from US 764 million in 2017 and US 618 million in 2016 (20, 22).

Short Term (0–5 years)

Positive retained earnings (in terms of EBITDA) for investors using cold storage technology to preserve horticulture produce materialize progressively from the second year of investment with the increase in sales from farmers (18).

Less than USD 500,000

Over 90% of the horticultural products produced in Tanzania are consumed in the country with only small percentage (about 10% or less) exported. This, is largely due to poor transport and storage infrastructure necessary to enhance their abilities to access markets (regional and international). This makes it difficult for the country to promote competitiveness of productive sectors (5,19,21)

The level of food insecurity is high in Tanzania. 15% of rural households are food insecure, with 15% more at risk of becoming food insecure. Malnutrition also remains high despite the steady economic growth over the past decade. 16.8 million Tanzanians are chronically undernourished. Over 34% of children under the age of five are stunted and nearly 45% of women of reproductive age are anemic (18,34,35).

Horticulture storage and transport infrastructure enhances the shelf life of the commodities and expand the volume of exports accessing the premium export markets. This ultimately increase earnings for all actors in the value chain. (5,18,19,32).
“Improved storage and transport infrastructure has potential to create new employment opportunities particularly to some of the 800,000 youth that enter Tanzania’s workforce each year. The opportunities can be in various segments of the value chain-sorting and grading, packaging, delivery to exporters ‘factories or collection centers (19, 20).

Improvements in distribution networks and processes would reduce transport-related losses, so that greater quantities of food reach market, while also improving end-product quality (19,20,33)
Improved storage and transport infrastrucure for horticulture products improves the food security and nutrition situation among the Tanzanian population (18).

People: Farming communities, especially those living in the hinterlands, benefit from storage and transportation options enhancing the utilisation of their produce.

Gender inequality and/or marginalization: Women, and youth are able to sell increased volume of products due to expanded sehld life

Planet: The environment benefits from waste management, particuarly from reduction of food waste (reduced post harvest losses) which reduces damage and conserves scarce resources.

Corporates: Companies involved in the manufacture and selling of machineries, accessories and facilities for cold storage and transport infrastructure (e.g., cold rooms, freezer units, refrigerated wagons and containers) will get business opportunities from the ongoing infrastructure projects.

Public sector: The government benefits from increased ability to promote infrastructure efficiencies which in turn will lead to additional tax revenue from increased exports

People: The general population obtains greater access to horticulture products as well as job opportunities in the employment intensive industry.

Gender inequality and/or marginalization: Women, the rural and urban poor communities as well as youth are able to secure employment opportunities in different segments of value chain as a result of expanded activities in storage and transport infrastructure

Planet: The planet enjoys safe management of horticulture products and less environmental polution.

Corporates: Small companies particularly SMEs get expanded opportunity to sell products to the Corporates from their small shops.

Failure to adhere to good quality practices in handling horticulture products on transit and exit points may produce negative effects on the product, ultimately contributing to food losses (7, 13).

With expanded activities and modernization of the horticulture sector in Tanzania, there is a likelihood of increased GHG emission. This is largely because fresh food transport system is a cold chain where huge volume of energy is needed to keep raw food in safety condition. Research has shown that the environmental impact of energy use particularly in GHG emission will continue to be felt in developing countries as they upgrade their cold storage infrastructure systems (38).

Low volumes of horticulture products may lead to suboptimal utilisation of storage and transport infrastructure, which may limit the expected impact (17, 19).

Lack of parallel efforts to improve the normal distribution networks (e.g., roads, airports, rail transportation systems) and energy sources (e.g electricity, solar power etc) may limit the expected impact because they are the bedrock on which the cold storage and transport infrastructure is yoked. The two systems complement each other (33).

Poor accessibility and low affordability for small-scale farmers may limit the expected impact because the storage and cold transport infrastructure requires heavy capital expenditure which are ordinarily beyond the reh of small-scale farmers (18, 33).

Tanzania Horticulture Development Strategy 2012-2021: Emphasises on infrastructure investment as a means for developing a robust competitive horticultural sector capable of supplying high quality produce for domestic, regional and international markets (8).

Third National Five-Year Plan (FYDP 3): Aims to address the challenges of horticulture by investing as well as creating an enabling environment for the private sector to invest in storage, transport and logistics, (5).

National Construction Policy, 2003: Aims at improving the capacity and effectiveness of the construction industry to meet the national economic demand for infrastructure facilities, including for the horticulture industry (25).

National Transport Policy, 2003: Supports appropriate development strategies and establishes a strong infrastructure base and services in all major towns and other centres of socio-economic activities and growth (27).

Fiscal incentives: Tanzania offers import duty and VAT exemption on deemed capital goods, including building materials, utility vehicles and equipment that is required for horticulture storage and transport infrastructure, among other things (33, 34).

The Bagamoyo Special Economic Zone provides quality infrastructure complemented by an attractive fiscal package, business support services, cluster formation and minimal regulations, which is particularly for horticulture activities, including storage and transportation (26).

Plant Protection Act 1997: Governs the importation and export of plant and plant products and ensure fulfillment of international commitment on agriculture trade (39).

Export Processing Zones Act 2002: Facilitates the creation of international competitiveness for export growth. Issues related to the horticulture sector, particularly for the establishments of large-scale production and infrastructure facilities are guided by the Act as well. (40)

Surface and Marine Transport Regulatory Authority Act: Provides regulations and the code of conduct for clearing and forwarding agents (30).

National Institute of Transport Act, 1983: Provides for the establishment of the institute to provide facilities for training in techniques of transport management, automobile mechanics and transport operations (31).

Private sector

TAHA Fresh. Farm to Fork Ltd, BRAVO Logistics (T) Ltd,East Africa Fruits Farm & Company Limited, EAT Fresh Ltd

Government

Ministry of Agriculture, Ministry of Industry and Trade, TanTrade, Tanzania Ports Authority, Tanzania Railways Authority, Tanzania Road Transport Agency, Tanzania Horticulture Association (TAHA), Tanzania Investment Centre (TIC), Tanzania Export Processing Zones Authority (TEPZA).

Multilaterals

World Bank Group (WBG), African Development Bank (AfDB), European Union (EU), United Nations Development Programme (UNDP).

Non-Profit

Tanzania Agriculture Council, Tanzania Food Gardening Network)TaFoGa Net), FinTrack, Technoserve, Enterprise Works, Private Agricultural Sector Support Trust (PASS)