The market size for all types of irrigation technologies in Tanzania was estimated to be USD 86.2 million in 2018 and expected to grow to USD 151.3 million by 2022 (13).

The market size for solar powered irrigation pumps is estimated at USD 25 million, which is split between small, medium and large scale farm operations (13).

20% – 25%

Short Term (0–5 years)

Solar water pumps have higher capital costs and lower operating costs than competing pump technologies. The payback for solar water pumps is 4-6 years, while for a diesel pump is less than a year. However, the life cycle cost of a diesel pump can be up to six times more than the life cycle cost of a solar water pump (13).

In terms of replacement, the life span of diesel pumps is approximately 7-12 years, whereas the life span of solar panel modules, which are the most delicate components in solar water pumps, is 20-25 years (13).

Less than USD 500,000

One of the critical weaknesses in Tanzanian agriculture is low productivity of land due to over dependency on rain-fed agriculture and low and underdeveloped irrigation potential. Out of 10.8 million hectares under cultivation only about 450,392 hectares are currently under irrigation. Irrigation development is constrained by low investment by both the government and the private sector. In general, Tanzania lacks the necessary infrastructure that could provide for a wide range of crops and efficient water use. Furthermore, the technical capacity of most producers for the development and sustainable management of irrigation schemes is still inadequate (29,30).

Tanzania has a low rural household electrification rate of 16.9%, which together with erratic grid power supply, fuel scarcity and price volatility, hinders many farmers from obtaining conventional irrigation systems (13).

Renewable energy irrigation increases the productivity of Tanzania’s agriculture sector. It can reduce food imports, which with 80% take the largest share of Tanzania’s total merchandise imports (14).

The adoption of modern irrigation technologies moves farmers from subsistence to market-based, commercial production, partly achieved through the improvement in yields and crop quality. Additionally, once a farmer has adopted irrigation, he/she is likely to implement other productivity-enhancing measures, including farming higher-value crops and expanding cropped areas (13).

Investing in water resource management in Tanzania has huge potential to reduce the adverse impact of climate variability and extremes, such as drought, which has posed a considerable risk to agricultural production, and hence poverty reduction and economic growth. Irrigation is increasingly viewed as a strategy to mitigate the impacts of climate variability and change. Improved irrigation systems can have positive impact to the planet owing to the fact that if facilitates and promotes water recycling and reuse and rainwater harvesting (31).

Irrigation is increasingly viewed as a strategy to mitigate the impacts of climate variability and change. In particular, large-scale irrigation schemes have the potential to buffer farmers from dependence on food aid in times of crop failure and drought. Small-scale irrigation is seen as key to improving agricultural productivity and incrementally increasing the resilience of rural livelihoods (31).

People: The general population gets increased access to reliable food supplies throughout the year.

Gender inequality and/or marginalization: Women and youth obtain employment opportunities in the irrigated farms because of expanded production potential and in other farm and non-farm activities, such as sorting, grading, processing and transportation.

Planet: The environment experiences lower emissions from irrigation activities and food production, and the water levels are managed more sustainably.

Corporates: Food processing companies obtain reliable raw material for their operations, solar water pump distributors and maintenance providers obtain new market opportunities.

Public sector: The government benefits from progress towards agricultural transformation and its commercialisation agenda.

Gender inequality and/or marginalization: Rural communities are able to grow crops in more than one season, hence increasing their food security and incomes.

Planet: Marginal lands enjoy greater utilisation, which improves resource efficiencies.

Corporates: SMEs get access to horizontally and vertically integrated activities along the agriculture value chains.

Enhanced irrigation activities may deplete scarce water sources, especially surface water bodies, if not managed sustainably.

The production and maintenance of renewable energy irrigation systems is resource intensive, and may negatively impact on the environment especially if the end of life stage is not managed sustainably.

Renewable energy irrigation depends on external factors affecting production, such as soil character, weather conditions and availability of water resources, and requires stable supply chains for equipment and inputs, which may affect the expected impact.

If the required advisory and technical assistance services are not available to support farming practices and agronomy knowledge, such as regarding water use, the impact of renewable energy irrigation may be limited.

National Irrigation Policy 2013: Sets a target of reaching coverage of 1,243,230 hectares under irrigation in the year 2025, up from the current 694,715 hectares (34).

Tanzania Revenue Authority 2019: The Government of Tanzania provides targeted incentives, including the exemption of import duty and VAT on some components, such as panels, batteries, inverters and regulators, which also apply to renewable energy irrigation (13).

The Water Sector Development Programme (2006 – 2025): Is designed to address shortfalls in urban and rural water supply infrastructure, to improve water resource management primarily through upgrading the country’s Basin Water Sources and to strengthen the sector institutions and their capacities (33)

Other incentives: The Tanzania Renewable Energy Association (TAREA) is partnering with the Energy Transition Facility of the Kingdom of the Netherlands to create enabling environment (e.g provision of fiscal incentives) for more affordable solar irrigation pumps for smallholders (20).

Fiscal incentives: Tanzania offers 0% import duty on project capital goods, raw materials and replacement parts for agriculture, animal husbandry and fishing, including for edible oil production. It also offers 100% capital expenditure in the agricultural sector (21).

Fiscal incentives: Exemption of import duty and VAT on some components, such as panels, batteries, inverters and regulators, which also apply to renewable energy irrigation (13).

National Irrigation Act, 2013 (No. 5 of 2013): Makes provision with respect to the management, use and maintenance of irrigation systems. It establishes the National Irrigation Commission and defines its functions and powers (17).

The Water Resources Management ACT,2009: This Act makes provision with respect to the management, use and protection in Tanzania of water resources, i.e., water courses, surface water, groundwater and estuary waters. The Act sets out fundamental principles of water use and conservation. It also states preferences in water allocation (35)

Plant Health Act, 2020: Has come into play following the dramatic spread of transboundary plant pests and after diseases have increased dramatically in recent years (19).

Investment Promotion Act No. 6, 2004: Promotes and facilitates investment by assisting investors in obtaining the licences necessary to invest and by providing other assistance and incentives and for related purposes (18).

Energy and Water Utilities Regulatory Authority (EWURA) ACT 2001, (CAP 414). An Act to establish a Regulatory Authority in relation to energy and water utilities and to provide for its operations. (36).

Private sector

Wade Rains Ltd, Balton International

Nabaki Africa

BioKube A/s.

Government

Tanzania Rural Energy Agency (TAREA)

Ministry of Agriculture, Tanzania Engineering and Manufacturing Design Organisation (TEMDO)

National Irrigation Commission.

Multilaterals

Food and Agricultural Organisation (FAO)

International Fund for Agricultural Development (IFAD)

African Development Bank (AfDB).

Non-Profit

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)

Kingdom of Netherlands

United States Agency for International Development (USAID)

UKAid

Low Energy Inclusive Appliances (LEIA).