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Tanzania's warehouse system generates $900 million for farmers
🇹🇿 Tanzania /Economy & Trade

Tanzania's warehouse system generates $900 million for farmers

From The Citizen · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Tanzania's Warehouse Receipt System generated over Sh2.3 trillion for farmers and traders in the 2025/26 financial year.
  • The system, which now covers 18 crops and products, aims to expand to livestock and other goods next year.
  • It has improved farmer incomes, increased transparency through digital auctions, and reduced exploitation by middlemen.

Tanzania's Warehouse Receipt System (WRS) has significantly boosted the earnings of farmers and crop traders, generating over Sh2.3 trillion (approximately $900 million USD) in the 2025/26 financial year. The Warehouse Receipts Regulatory Board (WRRB) announced plans to broaden the system's scope to include livestock and other products starting next fiscal year, signaling its growing success and importance.

The system had continued to improve farmers’ incomes, increase local government revenues and make crop trading more transparent through digital auctions.

— Asangye BanguWRRB Director General highlighting the benefits of the Warehouse Receipt System.

WRRB Director General Asangye Bangu highlighted the system's positive impact on farmer incomes, local government revenues, and the transparency of crop trading through digital auctions. In the 2025/26 period, 1.122 billion kilograms of nine crops were traded on the Tanzania Mercantile Exchange (TMX), a 43.6 percent increase from the previous year. Farmers received Sh2.298 trillion from these sales, while local authorities collected over Sh61 billion in crop levies.

Farmers received Sh2.298 trillion from the sales, while local authorities collected more than Sh61 billion in crop levies.

— Asangye BanguBangu detailing the financial impact of the system in the 2025/26 financial year.

Initially launched with cashew nuts in 2006, the WRS now encompasses 18 crops and products across 23 regions. This expansion reflects increasing confidence among farmers and stakeholders. The government's investment of Sh950 million in ICT systems, warehouse inspections, and farmer education during the 2025/26 financial year has been crucial. The board's internally generated revenue also saw a substantial rise, from Sh1.9 billion to Sh5.8 billion, and the system has supported the creation of 31,875 jobs.

In the past, farmers sold their crops at low prices because they lacked information. Today, they know auction prices and can decide whether to sell or wait for better prices.

— Asangye BanguBangu explaining how the system empowers farmers with price information.

Bangu emphasized how the WRS empowers farmers by providing access to accurate price information via digital auctions, thereby reducing their dependence on and exploitation by middlemen. "In the past, farmers sold their crops at low prices because they lacked information. Today, they know auction prices and can decide whether to sell or wait for better prices," he explained. The system also enhances crop security through strengthened supervision and insurance, leading to a decline in crop losses. The WRRB is actively working to upgrade existing warehouses and encourage investment in modern storage facilities.

Generally, crop losses have continued to decline due to improved supervision and the use of insurance.

— Asangye BanguBangu commenting on the improved crop security and reduced losses under the WRS.
DistantNews Editorial

Originally published by The Citizen in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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