This study aims to achieve a better understanding of the agricultural risk and risk management situation in Tanzania with a view to identifying key solutions to reduce current gross domestic product (GDP) growth volatility. For the purpose of this assessment, risk is defined as the probability that an uncertain event will occur that can potentially produce losses to participants along the supply chain.
Tanzania has tremendous potential to support a thriving agribusiness sector. Agriculture is diverse and extensive, employing more than 80 percent of the population, and contributing about 28 percent of Gross Domestic Product, or GDP and 30 percent of export earnings. A wide range of agricultural commodities are produced in Tanzania, including fiber (sisal, cotton), beverages (coffee, tea), sugar, grains (a diverse range of cereals and legumes), horticulture (temperate and tropical fruits, vegetables and flowers) and edible oils.