This study was carried out to compare the growth rate, lactation performance and tolerance to gastrointestinal nematode infection of Toggenburg and Norwegian breeds in Kongwa district, Tanzania with a semi-arid environment and Mvomero district with a sub-humid environment. Milk production of does, nematode eggs per gramme of faeces (EPG) and packed cell volume (PCV) were recorded for one year in 57 Toggenburg crosses and 72 Norwegian crosses raised by 107 small-scale farmers in the two districts. Kid body weights and mortality were recorded for 65 kids. Kid birth weights of Norwegian crosses (3.07 ± 0.13 kg) and Toggenburg crosses (2.91 ± 0.14) were not significantly different (P > 0.05). The growth rate of Norwegian crossbred kids from birth to one year (54.26 ± 4.33 g/day) was lower than that of Toggenburg crossbreds (61.50 ± 4.38 g/day). Toggenburg crossbred does produced slightly higher average daily milk yield (0.81 ± 0.08 l/day) compared to Norwegian crossbred does (0.64 ± 0.09 l/day). Norwegian crosses had higher mean EPG (211.78 ± 0.02) and lower PCV (23.93 ± 0.96%) than the Toggenburg crosses (129.51 ± 0.02 EPG and 26.71 ± 0.99% PCV). It is concluded that the Toggenburg crosses are relatively better suited to the smallholder production environments in rural areas of Tanzania compared to the Norwegian crosses.