Resource information
Tanzania is largely an agriculture-based
economy. This sector accounts for over three-quarters of
national employment, and approximately 25 percent of gross
domestic product (GDP). The national agricultural input
voucher scheme (NAIVS) is a market smart input subsidy
program designed in response to the sharp rise in global
grain and fertilizer prices in 2007 and 2008. The main aim
of the program is to raise maize and rice production, and
thus preserve Tanzania's household and national food
security. During the period from 2008 to 2013, approximately
United States (U.S.) 300 million dollars has been invested
in providing more than 2.5 million smallholder farmers with
a 50 percent subsidy on a one acre package of maize or rice
seed, and chemical fertilizer. The input subsidy program
helped Tanzanian smallholders harvest more than 2.5 million
tons of additional maize and rice grain. The NAIVS program
also faced multiple logistical challenges. These challenges
are being considered in the government's new big
results now initiative. This report summarizes the results
of an overview of the program, and the results of two major
impact surveys independently conducted in late 2010 and late
2012. Chapter one places the NAIVS in context, reviewing the
status of the agricultural economy and the importance of
grain production in the country. Chapter two provides an
overview of the NAIVS program, including budget,
expenditure, and implementation rules. Chapter three briefly
summarizes the impact survey results and highlights the
financial and economic returns of the program. Chapter four
discusses the challenges faced during implementation of the
NAIVs, and chapter five reviews the implications for further
investment in this sort of input subsidy.
