Masters DissertationThe groundnut sub-sector in Tanzania is characterized by low productivity compared to the maize sub-sector. Among other things, the low productivity is due to the use of low- quality seeds. This study is therefore attempted to compare the profit of groundnuts and maize seeds value chains in semi-arid agro-ecologies of central Tanzania. Specifically, the study mapped the seed value chain of groundnut and maize sub-sectors; compared the profitability of groundnut and maize seed farmers as well as seed companies operating under an out-grower scheme model by using a gross margin approach. Further, it assessed the factors influencing investment in the two seed sub-sectors using a binary logistic regression model. Generally, the study covered 291 respondents where 120 were groundnut seed farmers, 120 were maize seed farmers, 17 agro-dealers, 19 extension officers, 4 research institutes, 5 seed companies and 4 regulatory organizations. Both qualitative and quantitative methods of data analysis were employed. Using gross margin analysis, the study reveals that, groundnut seed farmers realize a high gross margin i.e a difference of 914 953 TZS compared to maize seed farmers. Also, seed companies operating under the out-grower model scheme realize higher gross margins than individual seed farmers. Results from binary logistic regression revealed that level of education, household size, frequency of extension services, and training has positive and significantly influence investment in the groundnut and maize seed value chain. For the improvement of the groundnut and maize seed value chain in the study area, the study recommends that the government should come up with policies aimed at subsidizing the cost of farm inputs such as fertilizer and pesticides to lower the cost of production.