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Poverty is prevalent and widespread in rural Tanzania, where agriculture is the main
activity. The government is making significant public investments intended to speed the growth
of agriculture as a means to accelerate inclusive economic growth. In line with public investments,
the government is promoting public–private partnerships by encouraging the use of improved
agricultural innovations and linking farmers to markets, seeking to increase their yields and income.
However, there is a paucity of empirical evidence using multipliers analysis about the extent of how
gains in agricultural productivity and market linkages for farmers in rural areas help improve the
economy at the household level. This paper assesses the welfare effects of the sunflower value chain
for a rural economy in Tanzania using a computable general equilibrium (CGE) model for the selected
village, which has a high potential for sunflower. Findings highlight the use of the CGE model, first,
for analyzing and understanding the economic sectors at a village level. Second, the effects of various
upgrading strategies promoted for improving rural farming communities by the government and
non-governmental development partners at the micro-scale are analyzed and potential agricultural
commodity value chains identified. The multiplier analysis provided insights regarding the potential
of sunflower crops for the village economy. |
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