Document Type: Progress Reports

The Tanzania SERA Policy Project (SERA) of the United States Agency for International Development (USAID) Feed the Future (FtF) Initiative is implemented by Booz Allen Hamilton. The SERA Project is focused on improving the policy environment for agriculture, and developing individual and institutional capacity to undertake policy analysis and advocate effectively for policy reforms. SERA began in April 2011, and completed the fourth full year of operation on September 30, 2015. This Quarterly Report, Quarter 2 (Q2) of Project Year 5 (Y5), covers the period from January 1, 2016 to March 31, 2016. SERA Project’s period of performance was originally set to end on April 7, 2016. However, a request for a no-cost extension has been approved by USAID which extends the period of performance through August 30, 2016. The SERA Chief-of-Party (COP), Marialyce Mutchler, was on leave during Q2 and the Senior Advisor, Don Mitchell, was the Interim Chief-of-Party and was resident in Tanzania from January 9 to March 12. The Ministry of Agriculture, Food Security and Cooperatives (MAFC) was reorganized in Q1 and the Ministries of Agriculture, Livestock and Fisheries were combined into a single ministry called the Ministry of Agriculture, Livestock and Fisheries (MALF). This Quarterly Report will refer to the reorganized Ministry and distinguish between activities undertaken with MAFC and MALF.

The following activities were completed during Q2:

• The study tour to Mozambique for the Agriculture Business Environment Study was undertaken from January 17-23.
• The draft Maize Gender Report was completed on January 31 and additional data analysis was requested of Taylor Nelson Sofres (TNS).
• Don Mitchell attended the USAID Partner’s Meeting in Morogoro from February 8-10.
• Alex Mkindi participated in a workshop in Dodoma from February 15-19 on Agricultural Investment Incentives and the Agricultural Business Environment.
• Nancy Cochrane from the United States Department of Agriculture (USDA) delivered training on the construction of a Healthy Food Basket to staff of the Department of Food Security and Nutrition in Zanzibar during February 16-18 and was assisted by Aneth Kayombo of SERA.
• Don Mitchell conducted training on Economic Principles for Food Basket Methodology (FBM) in Zanzibar on February 18.
• Nancy Cochran and Aneth Kayombo met with the Department of Food Security of MALF on February 22 to discuss piloting the FBM in four districts and introduced the concept of a Healthy Food Basket.
• The Food Basket Costs Policy Brief was launched at a workshop on February 19 by Don Mitchell, and Nancy Cochran made a presentation on the Healthy Food Basket.
• The No-Cost Extension Modification Proposal was submitted on February 25.
• Presentations and Chairing of Session at the Agriculture Policy Conference February 23-25 included:
  • Policy Options for Food Security by Don Mitchell
  • Agriculture Business Environment and Incentives by Don Mitchell
  • Land Compensation and Valuation Schemes by Don Mitchell
  • Secured Transactions/Collateral Registry by Dale Furnish
  • Chairing of Session on Inputs by Alex Mkindi
• Don Mitchell and Dale Furnish met with the Bank of Tanzania (BOT) staff to discuss the Secured Transactions/Collateral Registry activity on February 26.
• Professor Chen Zhen from the University of Georgia traveled to Tanzania to work with Edith Lazaro of SERA on the Food Demand Study from March 7-12.

The Mozambique study tour for the Agriculture Business Environment and Incentives study was conducted from January 17-23 and led by Don Mitchell. The team included James Ngwira from the President’s Delivery Bureau (PDB) and Martin Marsalu from the Tanzania Investment Center (TIC) as well Edith Lazaro of SERA. A local facilitator (Calisto Bias) was hired to arrange meetings and translate as necessary. The trip was very successful and provided the information needed to compare the agriculture business environment of Mozambique with that of Tanzania. The trip report (Annex 1) was circulated to the study team for comments and then revised and sent to the manager in each of the participating organizations.

Don Mitchell attended the USAID Partner’s Meeting from February 8-10 in Morogoro and renewed contacts with Feed the Future implementing partners and others involved with the USAID Economic Growth Agenda. Of particular note were discussions with David Kraybill and Isaac Minde of the iAGRI project, Geoffrey Kirenga and Jennifer Baarnes of Southern Agricultural Growth Corridor of Tanzania (SAGCOT), Julie Harrison from Michigan State University (MSU), Tom Carr of the NAFAKA, and the team from Dalbert that is providing support for SAGCOT Centre. Jennifer Baarnes, deputy Chief Executive Officer (CEO) of the SAGCOT Centre, was briefed on the status of the Agriculture Business Environment study and was provided with a preliminary draft of the PowerPoint to be delivered at the Agriculture Policy Conference. Geoffrey Kirenga, CEO of the SAGCOT Centre, delivered a presentation on the challenges faced by SAGCOT in attracting investors and said that SAGCOT has only delivered one land title of eight hectares (to Unilever for a new tea factory) in the entire five years that SAGCOT Centre has operated. Tom Carr, COP of NAFAKA, expressed interest in meeting to discuss SERA policy activities and was especially interested in our maize gender study. The Dalbert Group requested a meeting to compare our work on policy with their support of SAGCOT Centre. Julie Harrison of Michigan State University, who is involved in a review of SAGCOT, was very interested in SERA’s views of SAGCOT’s successes that were reported by Geoffrey Kiringa.

The draft Maize Gender Report (Annex 2) was completed and circulated to our World Bank (WB)/International Finance Corporation (IFC) collaborators for comments and to SERA staff and selected others. It was also sent to TNS consultants for data corrections and completions.

Alex Mkindi traveled to Dodoma to participate in a workshop on the business environment and incentives for agricultural investors from February 15-20. The trip report is attached (Annex 3).

Training on basic economic principles needed for analysis of food security and implementation of the FBM (Annex 4) was provided to the Department of Food Security and Nutrition in Zanzibar on February 18 by Don Mitchell. The three-hour training covered the basics of demand, supply, price determination, inflation, exchange rates, import dependence, gross domestic product (GDP), and monitoring of regional and global food markets and food prices. The training was well received and should have improved the team’s ability to understand economic principles needed to implement the Food Basket Methodology.

The Food Basket Costs Policy Brief (Annex 5) was launched in Dar es Salaam on February 19 at a half-day workshop at the Protea Courtyard Hotel to about 20 people from various organizations. The Ministry of Agriculture, Livestock and Fisheries was represented by Caroline Kilembe from the Department of Food Security and she is emerging as a strong supporter of the Food Basket Methodology. She will feature strongly in our future efforts to anchor the Methodology in the MALF. Nancy Cochrane presented her work (done in collaboration with (SERA) on the development of a Healthy Food Basket. Nancy plans to return in April to continue work on the FBM and Healthy Food Basket with the MALF.

The 2nd Annual Agricultural Policy Conference was held during February 23-25 at the Serena Hotel in Dar es Salaam. SERA provided financial support for the conference, assisted in the planning of the conference, and was very visible by contributing to four presentations and chairing one session. The conference brought together key decision makers, including the Deputy Minister of Agriculture, the Permanent Secretary (PS) of Food Security in MALF, a member of parliament who is on the agriculture committee, the CEO of SAGCOT, and elder statesmen including Peniel Lyimo a former PS in both the Prime Minister’s Office (PMO) and MAFC. The new PS of the MALF requested that the presentations and reports be sent to him. Don Mitchell presented the Policy Options for Food Security which was updated from an earlier version with new material on Food Basket Costs and the Business Environment. Don Mitchell also presented the draft of an Agriculture Business Environment Study that showed that Tanzania is not competitive on taxes, fees, and operating costs compared to Mozambique and Zambia, and that access to land is the single most important constraint to attracting large investors into the agricultural sector. The results make it easier to understand why SAGCOT has not been successful in attracting foreign investors into the sector. Conference participants encouraged SERA to try and use the results to lobby the Government of Tanzania (GOT) to improve Tanzanian competitiveness in corporate agriculture. Don Mitchell also made a presentation on Land Compensation Schemes and Valuation Models from the study completed by Landesa for SERA. Professor Dale Furnish, the SERA consultant working on Secured Transactions/Collateral Registry made a presentation showing how the Secured Transactions Law needs to be changed and what the subsequent benefits of making such changes would be. Finally, Alex Mkindi chaired a session on Agricultural Inputs. The program for the conference and all PowerPoint presentations are attached as Annex 6.

Don Mitchell and Dale Furnish met with the Bank of Tanzania staff on February 26 to follow-up on the progress on the implementation of the Secured Transactions/Collateral Registry. Augustino Hotay, the BOT lead on this activity, and Nkawna Magina, presented SERA with a work plan for fast tracking the activity and requested support for a workshop and consultants to present the activity to BOT management. We suggested they submit a formal request and advised BOT that our availability and funds to support the activity were limited by the upcoming closing of the SERA Project. No request had been received by the end of Q2.

Nancy Cochran of the Economic Research Service (ERS) of USDA visited Tanzania from February 15-26 to provide training to the Department of Food Security and Nutrition in Zanzibar on the construction of a Healthy Food Basket and to meet with the Department of Food Security of the MALF to discuss continued work on the implementation of the Food Basket Methodology. The training in Zanzibar was conducted from February 16-18 and is attached in Annex 7. The discussions with the MALF included planning of a desk study prior to conducting a pilot in four districts (Bahi, Kilosa, Masai, and Longido).

Professor Chen Zhen of the University of Georgia in Atlanta, Georgia traveled to Tanzania from March 7-12 to work with Edith Lazaro and Don Mitchell of SERA on the Tanzania Food Demand Study. Professor Zhen is an expert on the econometric estimation of food demand systems and was able to provide technical leadership and guidance on the activity and substantial progress was made on the estimation of a theoretically sound demand system. The results will be completed by July and are expected to provide a better understanding of the economic parameters of food demand and provide the basis for estimation of future demand trends. The trip report is attached as Annex 8.

The first draft of the Agriculture Business Environment and Incentives study was completed by Don Mitchell and Edith Lazaro in March 2016 and circulated to team members for review and comments. The findings from the study show that Tanzania is not competitive with Mozambique and Zambia at attracting large foreign investors into the sector. Tanzania does not offer special corporate tax incentives to agriculture while Mozambique and Zambia do, and Tanzania has significantly higher local taxes and operating costs than Mozambique or Zambia. Access to land is also a constraint to foreign investors and the Tanzania Land Act (1999) precludes the sale of a land title by a foreign investor which prevents an investor from benefiting from land value appreciation. The preliminary findings were presented at the Agricultural Policy Conference and the final report will be submitted to key stakeholders and decision makers in April.

The SERA project made substantial progress during the quarter on all of its primary focus areas; Policy Research and Reform; Individual and Institutional Capacity Building; and Advocacy, Communications and Alliances. Within the Policy and Research Reform Areas, the primary policy research activity was to propose a program of research to support better understanding of food security needs in Tanzania and explore policy alternatives to the use of export bans. The proposed program of work was strongly endorsed by the government and suitable partner institutions were identified to conduct research with guidance from SERA. The development of the collateral registry system which will make it easier for lending institutions to secure financial transactions and borrowers to obtain credit on moveable assets was restarted with support of the Bank of Tanzania. The Cereals and Other Product Act of 2009 was analysed and the implications described in a briefing note prepared for the ANSAF Policy Working Group and widely disseminated. Efforts to support reforms of seed policy continued and discussions with TASTA, the private sector industry association, were undertaken. Policy discussions were begun with the GoT in Zanzibar and initial efforts will focus on food security and agricultural policies. SERA’s effort to build local capacity to conduct policy research was supported by agreement to sponsor an agricultural policy seminar series in the Department of Agricultural Economics at Sokoine University to be jointly funded with iAGRI. A communications officer was added in December following an extensive search for the best candidate with the assistance of a communications expert from Booz Allen headquarters. A capacity building specialist was identified and hired to begin in January. Close collaboration with other partners and stakeholders was maintained and resources were leveraged by working with other FtF implementing partners, IFPRI, and USDA. An active policy dialogue was maintained and leadership provided to policy activities among the FtF Implementing Partners. Alliances with important stakeholders continued to be developed to build a network of capable institutions and organizations to advocate for policy change.

The primary focus of the SERA Policy Project during the quarter was on institutional capacity building, continuing activities related to food security, preparing statement of works (SOWs) and selecting consultant teams for studies and activities to be undertaken in Q3, and providing support to development partners such as Gates Foundation and Tanzania Seed Traders Association (TASTA). Our institutional capacity building activities included completing a draft assessment of the Zanzibar Department of Food Security and Nutrition (ZDFSN) Program, and completing the Agriculture Council of Tanzania (ACT) Second Strategic Plan. Food security activities included a field trip to the northern border area with Ministry of Agriculture, Food Security and Cooperatives (MAFC) and local government staff to assess the food security and trade situation following the lifting of the maize export ban, and a field trip to Mbeya and Musoma with United States Department of Agriculture (USDA) and MAFC to estimate the cost of a typical food basket. In addition, consultations were held with the Ministry of Industry and Trade on food price data, the Tanzania Social Action Fund (TASAF) on their social safety net activities, and the Zanzibar Ministry of Agriculture and Natural Resources on ongoing and planned SERA work activities. The Concept Note and Scope of Work for the Land Compensation and Benefits Sharing study for the Ministry of Lands was completed and the consulting firm Landesa was selected to undertake the study. Meetings were held with the Director of Coordination of Government Actions in the Prime Minister’s Office (PMO) and the Director of Food Security in MAFC to discuss ongoing food security studies and to plan a workshop to disseminate findings in Q3. Communications and advocacy activities included video recording of meetings with traders and farmers during field trips and completion of the draft SERA website.

Going forward, the SERA Project will be very active in Q3 with a consulting team arriving in May to evaluate the capacity and activities of the National Food Reserve Agency, and a second consulting team arriving in June to begin the Land Compensation and Benefits Sharing study. Discussions are underway to engage an expert to prepare an impact study on the use of export and import permits. A report prepared by SERA staff on the impacts of zero‐duty on rice imports on the mainland will be completed and discussed at a subsequent stakeholders meeting. The initial draft of the rice market study for Zanzibar will be completed and presented to the Revolutionary Government of Zanzibar (RGoZ). Depending on stakeholder availability, a workshop on food security on the mainland is planned for Q3 or Q4 where we will present the food security work started in Q2 and scheduled for completion in Q3. Capacity building activities in Zanzibar will include the presentation of the Food Security and Nutrition Program Review and additional activities to support the development of an operational strategic plan. Communications and advocacy will continue to document the impact of the lifting of the export in Arusha and Kilimanjaro, and finalization of the SERA website.

The Tanzania SERA Policy Project (SERA Project) of the United States Agency for International Development (USAID) Feed the Future Initiative (FtF) completed its second full year of operation on September 30, 2013. There were substantial successes on the policy research and reform, and capacity building activities. There was a setback on the advocacy and communications activities due to the unexpected departure of the Communications Officer in mid‐August. That left several important activities, including the web site and other communications products, unfinished. The focus and scope of the advocacy and communications activities will now be re‐evaluated and staffing re‐considered.

New research and policy analysis activities undertaken by the SERA Project this past year included a study of land compensation and benefits sharing, research on rice policy on both Zanzibar and the mainland, further research on food security in Zanzibar and the mainland, and a critical review of the cost and optimal size of the strategic grain reserve held by the National Food Reserve Agency (NFRA). A food basket approach to measuring access to food at the regional level was piloted and approved for implementation by the Ministry of Agriculture, Food Security and Cooperatives (MAFC) Department of Food Security (DFS). After two years of discussion with the Bank of Tanzania (BoT) and the Ministry of Finance (MoF), the BoT gave its approval to develop and implement the collateral registry system in June.

Institutional capacity building activities continued to focus on the Agricultural Council of Tanzania (ACT), and the Department of Food Security on both the mainland and Zanzibar. Individual capacity building activities included continued joint sponsorship of the policy seminar series at Sokoine University with FtF implementing partner iAGRI, and the teaching of an eight week policy analysis course to 20 staff of various ministries in Zanzibar by the SERA Project’s Chief of Party (COP) and Junior Policy Analyst. The SERA Project also continued to develop its database of agricultural and economic regional and national data.

The USAID Feed the Future Initiative seeks to improve food security in Tanzania by increasing agricultural production and nutrition, while the SERA Policy Project is primarily focused on improving the policy environment for agricultural production. The SERA Project is not involved in analyzing policies on nutrition because of its limited resources to undertake analysis of both agricultural and nutrition policies and because other FtF implementing partners and organizations such as the World Bank have provided strong leadership in this area. However, SERA activities contribute to improving nutrition by increase rural incomes through its policy reform and capacity building activities. Increasing incomes then contribute to improved nutrition by enabling households to purchase increased quantities and more nutritious foods.

The Tanzania SERA project has two primary objectives: i) to improve agricultural policies and ii) to build the capacity of individuals and organizations to undertake policy research and advocate for policy change. In support of these two objectives, a number of activities were undertaken in the project’s third quarter (Q3) from April 1 to June 30, 2012 of the second year. These included:

• Concluding a major research activity on the impacts of the food crops export ban and disseminating the results at two workshops.
• Continued efforts to improve the tax treatment of the seed industry by supporting two workshops for seed stakeholders to discuss industry concerns and begin to develop a strategy to pursue policy changes.
• Discussions with the Ministry of Finance and the Bank of Tanzania on the introduction of a collateral registry system.
• Support to the Agriculture Council of Tanzania (ACT) for a study tour to inform their second five‐year strategic planning process.
• Discussions with the Ministry of Agriculture of Zanzibar to develop their food security and nutrition analysis and work program.
• Creation of a policy seminar series at Sokoine University jointly sponsored with Feed the Future (FtF) implementing partner, iAGRI.
• Conducting a stakeholder’s perception survey to deepen understanding of policies issues and knowledge gaps.
• Development of an agricultural database to assist performance monitoring and support more detailed research on agricultural policies.

The major research activity on the impacts of the food crop export bans begun in Q2 was successfully concluded in Q3. Three research teams were brought to Tanzania in March 2012 to conduct interviews and undertake field trips, and they completed their research in Q3. A workshop was presented to high‐level invited Government officials in Dodoma on June 16th and a second workshop for all stakeholders was presented at the Kunduchi Beach Hotel in Dar es Salaam on June 19th. Both workshops were well attended and presented new and detailed evidence on the impacts of the export ban and food security. The research agenda was designed and coordinated by the SERA project and was prepared by teams from the Associates for International Resources and Development (AIRD), the International Food Policy Research Institute (IFPRI), and the U.S. Department of Agriculture (USDA). An additional study, done by the World Bank, on the impacts of climate change on Tanzanian export crops was undertaken independently and also presented at the workshop. The main findings of the research were: i) that the regional market for food crop exports from Tanzania, especially maize and rice, will remain in deficit for at least the next decade and offer good opportunities for Tanzanian exports, ii) that Tanzania will need to increase production in order to take advantage of this opportunity, iii) that the food crops export bans reduce incentives to producers, iv) that the export bans are not effective at controlling food price inflation or exports and harm the rural poor while generally benefiting the wealthier urban consumers, and v) that new approaches to food security are needed to more effectively reach the poorest. In addition to these main findings, the research provided greater understanding of diets of rural and urban Tanzanians, and identified weaknesses in the agricultural data systems that raise questions about the reliability of data for policy decision making.

Institutional capacity building efforts in Q3 were directed primarily at ACT which was identified as an important Tanzanian organization with broad stakeholder involvement and an ongoing policy dialogue with Government. A study tour for nine ACT board members and stakeholders to Zambia and Malawi was sponsored by the SERA project from June 19th to July 2nd to inform ACT’s strategic planning activities. An evaluation of ACT’s existing Strategic Plan will be undertaken in Q4. New opportunities for capacity building were also identified in the Department of Food Security of the mainland, Ministry of Agriculture, Food Security and Cooperatives (MAFC) and the Department of Food Security and Nutrition of the Ministry of Agriculture of Zanzibar (MAZ). Both have requested capacity building support from the SERA project and these will become major activities in Q4. Individual capacity building efforts have focused primarily on establishing the Policy Seminar Series at Sokoine University jointly with Feed the Future (FtF) implementing partner, iAGRI. A Policy Seminar Series organizing committee was established and a call for research proposals was released during Q3. Four proposals were accepted by the committee and will be supported by SERA and iAGRI with small grants to conduct the research.

In support of the primary objectives of improving policies and developing capacity, a database has been developed to assist SERA and other organizations to monitor agricultural performance and conduct policy analysis. Regional data has been obtained from the National Bureau of Statistics (NBS), Ministry of Industry and Trade (MIT), and MAFC on regional production of major food crops and wholesale prices at major markets. Macroeconomic and demographic data obtained includes regional GDP, population and measures of nutrition. Efforts to obtain district level data have not yet been successful, but will continue.

The SERA project has collaborated with other FtF implementing partners and other development partners, provided leadership on important policy issues, and leveraged its resources by jointly sponsoring activities. The SERA project provided strong support to defining the policy agenda for agricultural policy reform for the G8 and GoT.

The primary focus of the SERA policy project during the quarter was on capacity building at both the individual and institutional levels. This included support to the Agricultural Council of Tanzania (ACT) to develop a strategic five‐year plan, an institutional evaluation of the Zanzibar Department of Food Security and Nutrition (ZDFSN), on‐going support to the Department of Food Security (DFS) of the mainland to improve their capacity to estimate food production and requirements, and monitor food security, and SERA staff teaching an eight‐week course on Policy Analysis to 20 students enrolled from various government ministries in Zanzibar.

New activities were also undertaken on research and policy analysis, including developing a concept note and scope of work for a land allocation and compensation study, and a week‐long field trip to the southern highlands to examine the food situation and respond to concerns raised by staff of the Ministry of Agriculture, Food Security and Cooperatives (MAFSC) about the impacts of the export ban, and continued support to Tanzania Seed Traders Association (TASTA) in their activities to improve seed policies. The Prime Minister’s announcement of the lifting of the maize export ban in September 2012 continued to gain recognition for the SERA project’s policy reforms and the SERA Chief of Party (COP) was invited to present the work on the export ban as a case study at a United States Agency for International Development (USAID) regional workshop in Uganda in October 2012. The COP and Senior Policy Advisor also provided support to the USAID mission on the Tanzanian commitments to the Group of Eight (G8) on various agricultural policy reforms. Meetings were held with senior staff of the Ministry of Finance in an effort to advance the development of a collateral registry in Tanzania, but those efforts have not been very effective and additional efforts will be required.

The communications and advocacy activities included video interviews with farmers, traders, and processors during the field trip to the southern highlands, and the incorporation of these into a video on the impact of the export ban in the southern highlands. The video was presented at the Feed the Future (FtF) partners meeting in November 2012 and received favourable comments. A request for proposal (RFP) was also prepared and disseminated for the development of a SERA website and a contract was awarded to a local firm.

The SERA project’s staff was given new challenges which allowed them to show their abilities, gain experience, and improve their skills. These included involving our junior policy analyst in the teaching of the skills portion of the policy course and giving a PowerPoint presentation on the course to the FtF partners meeting in November 2012, and our communications officer developing and presenting a multimedia presentation on the export ban at the partners meeting.

Going forward, the SERA project will begin new research on food security that is expected to result in a workshop to government and other stakeholders in June 2013. A land allocation and compensation study is expected to begin in February 2013 and be presented to government and other stakeholders in May or June 2013. Our institutional capacity building efforts will continue to support ACT, the ZDFSN and the DFS on the mainland. The development of SERA website is expected to be finished in Q2 and will be launched shortly thereafter.

The Tanzania SERA Policy Project (SERA) of the United States Agency for International Development (USAID) Feed the Future (FtF) Initiative is implemented by Booz Allen Hamilton. The SERA Project is focused on improving the policy environment for agriculture, and developing individual and institutional capacity to undertake policy analysis and advocate effectively for policy reforms. SERA began in April 2011, and completed the second full year of operation on September 30, 2013. This Quarterly Report, Quarter 3 (Q3) of SERA Project Year 3, covers the period from April 1, 2014 to June 30, 2014.

Q3 saw the achievement of an important milestone for SERA, with the approval of a contract modification on May 7, 2014, that substantially increased resources available for the remaining years of the Project. In addition to this milestone, the SERA team was very busy in Q3 with three teams of consultants conducting research, assessments, and training as well as SERA staff participating in a number of activities. The extremely busy schedule meant that some activities were delayed, and others delays were unavoidable because of the slow delivery of agreed activities by both government and private sector counterparts.

Improving the tax treatment of seed and seed packaging materials has been a priority for SERA since project inception and that effort culminated in a presentation by the SERA team to the Ministry of Finance (MoF) committee on taxation on April 15, 2014. SERA partnered with the Ministry of Agriculture, Food Security and Cooperatives (MAFC) and the Tanzania Seed Traders Association (TASTA) to present the case for tax exemption of seed packaging materials and improved tax treatment of seeds (Annex 1). No decision has been announced, but it was unfortunate that the petition for reduced taxes came during a year when the focus of the Ministry of Finance’s budget presentations was on reducing tax exemptions. If the improved tax treatment is not achieved this year, SERA will continue to strengthen the case and re‐submit next year.

A team of consultants from Associates for International Resources and Development (AIRD) visited Tanzania from May 12 – 23, 2014 to collaborate with SERA team to research policy issues for the Food Security Policy Options Paper being prepared for the Government of the United Republic of Tanzania (GoT). The activity is supported by the NAFAKA Staples Value Chain Project, in close collaboration with the MAFC. Three junior staff members from MAFC were invited to participate as a learning and capacity building activity, and the policy advisor of the MAFC Department of Policy and Planning (DPP) was included as a collaborator. The preliminary findings for that activity are attached as Annex 2 and AIRD will deliver a final report of findings and recommendations in Q4. The Policy Options Paper is scheduled to be presented to GoT in Q4.

The Economic Research Service (ERS) of the U.S. Department of Agriculture (USDA) and SERA team conducted a training session on the Food Basket Methodology (FBM) from June 9 – 20, 2014, for 12 staff from MAFC and two faculties from Sokoine University (SUA). The training focused on the estimation and use of the typical food basket costs for each of 19 regions in Tanzania mainland (see the training schedule in Annex 3). The training achieved its objectives and MAFC staff members are now better prepared to estimate and interpret food basket costs for individual regions. The SERA team will conduct follow‐up training in Q4 and the ERS team will return in Year 4 to assess results and begin training staff of the Zanzibar Department of Food Security and Nutrition (ZDFSN).

An assessment of data needs and availability for the Food Security Early Warning System (MUCHALI) was begun by a team of consultants and SERA staff on June 23, 2014, and will conclude in Q4. The MUCHALI Framework is the GoT’s early warning and disaster response activity, jointly directed by the Prime Minister’s Office (PMO) Disaster Management Department (DMD) and the Department of Food Security (DFS) of MAFC. The assessment will also review the objectives of MUCHALI and recommend changes as appropriate. The statement of work (SOW) for the activity is attached as Annex 4.

The draft Land Compensation and Benefits Sharing study undertaken by Landesa, with support and collaboration from SERA, was completed in April 2014 and will be presented at a national workshop with the Ministry of Lands, Housing and Human Settlements Development (MLHHSD). However, the activity has been delayed due to other work priorities at MLHHSD, and the referral of key findings of the study to expert legal review. The legal review was received on June 24, 2014, and will be finalized prior to discussions with MLHHSD. The workshop is targeted to take place in Q4. The executive summary of the report is attached as Annex 5.

The report on the Determinants of Tanzanian Maize Prices was completed and submitted on June 30, 2014. The research, econometrically estimated the contribution of regional and global maize prices, export bans, weather shocks, seasonality, fuel prices, and inflation on maize prices in 18 regions of mainland Tanzania using monthly data from 2004 to 2013. The results quantified the impact of the export ban on Tanzanian maize prices and also provided new insights into trade patterns and the impact of weather shocks and seasonality on maize prices. Estimation results showed that export bans increase the price impacts of weather shocks and seasonal price changes. A summary of the research is provided in Annex 6.

In addition to these activities, SERA team was involved in a number of workshops, meetings, and policy discussions. SERA staff participated in the monthly Policy Analysis Group meetings organized by the MAFC. The SERA Chief of Party (COP) met the Bill and Melinda Gates Foundation (BMGF) on April 28, 2014 to discuss policy, met with USAID in June to discuss land policy, met with a commodity advisor from National Merchants Bank (NMB) Bank on June 3 to discuss rice policy issues and their impact on sector lending. Capacity building activities with the ZDFSN continued, with SERA staff traveling to Zanzibar for meetings. The SERA Project received a request to organize a Data Harmonization workshop to bring together GoT, private sector and other stakeholders to discuss better coordination and sharing of data on key commodities. This follows the successful work completed by SERA on duty‐free rice imports and the workshop has received strong support from USAID, DFS of MAFC, and the private sector. The activity is planned for Q4. On June 23, 2014, the SERA COP participated in Policy Discussions organized by the Agriculture Advisor of Big Results Now (BRN) and will follow up with analysis of imports on key food commodities. The SERA COP was invited to a Southern Agriculture Growth corridor of Tanzania (SAGCOT) Roundtable held on June 26, 2014, where he presented a review of policy constraints to the rice value chain.

Escalating requests for policy analysis and SERA participation in policy discussions slowed accomplishments of the work plan, but also reflect that SERA’s contribution and analysis is gaining high regards from the GoT and other stakeholders. They also highlight the changing role of SERA from primarily undertaking research on policy issue to participation in policy discussions at an early stage. This change is welcome, despite challenges presented to completing the established work plan. Working relationships with the Prime Minister’s Office, Big Results Now, and SAGCOT are especially strong, while relationships with the Ministry of Agriculture, Food Security and Cooperatives are more difficult due to lack of support of the Ministry on agreed work activities. This was evident with the Food Basket Training for Ministry staff which did not receive sufficient priority from the Ministry. The launch of the SERA website was delayed due to slow progress in completing the final preparations of the site.

The Tanzania SERA Project will assist both the Government of the Republic of Tanzania (GoT) and the private sector in enabling a broad‐based, sustainable transformation of the agricultural sector through policy reform.  The project will focus on current policy and the regulatory environment for agriculture—from the transactional “hot” topics to the needed strategic foundational changes— building capacity of local institutions to lead informed dialogue on policy and regulatory issues in the agriculture sector and advocate for the necessary changes.

The vision for this project is twofold: to improve the policy and regulatory environment for agriculture growth and to build a group of public sector institutions, advocacy organizations, and individuals capable of performing rigorous policy analysis in support of evidence‐based advocacy and policy reform. At the conclusion of the project, we expect USAID will leave behind sustainable capacity within the GoT to initiate, develop, and utilize evidence‐based research in policy decisions and implementation, empowering local research and private sector advocacy groups to more effectively use analysis and strategic communications to lobby for change, and building national partnerships that create consensus around agriculture policy and monitor the impacts of policy.

The SERA project will focus all activities around priorities identified in collaboration with the Southern Agriculture Growth Corridor of Tanzania (SAGCOT) initiative.

Quarterly Highlights

• The SERA project was awarded to Booz Allen Hamilton in April 2011 and Donald Mitchell was selected as the Chief‐of‐Party (COP).
• The first Partners Meeting was held from May 23‐27 in Kilombero.
• The COP attended a Seed Industry Stakeholders Meeting in Arusha on June 3rd and prepared a BTO and draft Case for Value Chain Analysis.
• The COP attended a Cereals Working Group meeting on June 10 where the activities and mandates of the Cereals and Other Produce Board were discussed.
• The First Year Work Planning Workshop for SERA was held on June 27.

The SERA Policy Project saw several significant accomplishments in the third quarter, but also delays in completing major activities due to scheduling conflicts with important counterparts, delays in getting approval for activities, and the need to focus efforts on new policy challenges that emerged. Despite these delays, there were major accomplishments in policy analysis, capacity building, and communications and advocacy. Major accomplishments in policy analysis included: preparation of a policy paper on duty‐free rice imports, jointly supporting a team from Associates for International Resources and Development (AIRD) with the Staples Value Chain Project (NAFAKA) to study the contribution of the National Food Reserve Agency (NFRA) to food security and the impact of export and import permits on food crops trade, submission of a request to the Government of Tanzania (GoT) for more favorable tax treatment of agricultural seeds, fielding a team from Landesa to investigate land compensation and benefits sharing schemes, and preparation of a research proposal on rice demand and competitiveness to the World Bank for funding. However, the rice market study for Zanzibar was not completed due to work on other activities and the Food Security Workshop was delayed until Q4. The presentation of policy research sponsored under the Policy Seminar Series at Sokoine University has been delayed due to slow progress by researchers.

Our capacity building activities included continued support to the Zanzibar Food Security and Nutrition Department (FSND) of the Zanzibar Ministry of Agriculture and Natural Resources, the Agricultural Council of Tanzania (ACT), and the mainland’s Department of Food Security of the Ministry of Agriculture, Food Security and Cooperatives (MAFC). Activities with the Zanzibar Food Security and Nutrition Department included completing Phase One ‐ Review of the Food Security and Nutrition Program and facilitating the drafting of Phase Two ‐ Strategic Prioritization Plan, initiating a review of the Tanzania Social Action Fund (TASAF) – Zanzibar branch, and outlining a strategy for FSND’s Program Monitoring and Performance Plan. A two‐day workshop for 16 members of the FSND team and representatives from the Food and Agriculture Organization (FAO) was held to present the findings of Phase One ‐ Review of Food Security and Nutrition Program, engage participants in a stakeholders mapping exercise, review relevant legislation, and identify key priorities for Phase Two. Support to ACT was provided enabling 40 members to attend the Southern African Confederation of Agricultural Unions (SACAU) 2013 Annual Conference in Dar es Salaam on May 13‐14, 2013. A staff member from ACT also participated in the NFRA review conducted by the AIRD team in order to increase linkages with ACT and to develop the staff member’s individual capacity. The capacity building support to ACT is now largely complete and future capacity building efforts will be directed towards other organizations and individuals. Our capacity building activities with the mainland’s Department of Food Security included continued support for the development of the food basket approach to estimating food requirements and support for a staff member from the Department of Food Security to participate in the NFRA review. Support to the Department will continue through collaboration with the United States Department of Agriculture (USDA) team developing the food basket methodology and training staff on the estimation procedures. Individual capacity building through support to the Policy Seminar Series at Sokoine University has not progressed as planned due to the slow delivery of research papers by the four teams selected in the competitive grants process that was conducted in Q1. Renewed efforts to encourage the researchers to complete their work will be undertaken in Q4.

The SERA website was completed, but was not launched as planned in this quarter as we await United States Agency for International Development (USAID) approval. However, the Branding and Marking Plan was approved, which constitutes an essential milestone before the website could be submitted for approval. Our focus on developing a comprehensive database continued and a comparison of rice prices from the GoT, the private sector, and the East Africa Grain Council (EAGC) was completed as part of a policy review of rice imports. We expect to complete the database of monthly wholesale and retail food crop prices for 20 regions before the end of the current project year. The database will include data from 2000. New office furniture and equipment were purchased during the quarter following the renewal of our office lease for another two year. Collaboration with government and development partners continued and SERA has achieved an excellent reputation for quality analysis and responsiveness to client needs. Finally, approval from the Bank of Tanzania (BoT) to develop the Secured Transaction (Collateral Registry) was received after almost two years of discussion, and is a major development in our efforts to provide greater access to credit at affordable rates.

Challenges to the SERA project have been primarily with counterpart delays and scheduling conflicts that have slowed the delivery of activities. The Food Security Workshops for GoT and all stakeholders was planned for Q3 but has been delayed until Q4; this has required rescheduling venues and services. However past challenges, such as obtaining timely data, has improved due to the close working relationship developed with the Ministry of Industry and Trade (MIT), and the National Bureau of Statistics (NBS).

The SERA Project has collaborated with other FtF implementing partners and other stakeholders to improve policy and build capacity in the agricultural sector, including: jointly sponsoring the Policy Seminar Series at Sokoine University with FtF implementing partner iAGRI; working with FtF implementing partner NAFAKA in supporting the AIRD team to review NFRA’s contributions to the national food security system; co‐sponsoring the Policy Seminar Series with iAGRI; engaging WANZA BORA project to develop a capacity building activity for the Zanzibar FSND; and planning capacity building support for institutional performance monitoring with FtF implementing partner The Mitchell Group (TMG). The SERA Project has also developed a closer working relationship with SAGCOT following the appointment of a new Executive Director and has recently assisted them with activities related to rice imports and seed policy. The SERA Project continues to collaborate with the Tanzania Seed Traders Association (TASTA), the Prime Minister’s Office (PMO), Alliance for a Green Revolution in Africa (AGRA), Agriculture Non‐State Actors Forum (ANSAF), and EAGC and FAO; these working relationships continue on important policy issues and capacity building activities. Collaboration with FAO included discussion of the Strategic Grain Reserve on Zanzibar and discussions on food security on the mainland. Discussions are also underway with the FAO’s Southern Highlands Food Systems Program on improving marketing of agricultural commodities. In addition, the SERA Project continued to work closely with the USDA’s Economic and Research Service (ERS) to support the MAFC’s Department of Food Security. The SERA Policy team also met with and supported a team from Fintrac that was reviewing the policies of the seed sector. A joint research proposal on rice demand and competitiveness was prepared with the World Bank.

The Tanzania SERA Policy Project (SERA) of the United States Agency for International Development (USAID) Feed the Future (FtF) Initiative is implemented by Booz Allen Hamilton. The SERA Project is focused on improving the policy environment for agriculture, and developing individual and institutional capacity to undertake policy analysis and advocate effectively for policy reforms. SERA began in April 2011, and completed the third full year of operation on 30 September 2014. This Quarterly Report, Quarter 3 (Q3) of Project Year 4 (Y4), covers the period from 1 April 2015 to 30 June 2015.

In Q3 of Y4, SERA continued to support the Government of Tanzania (GOT) in its efforts to improve the agricultural policy environment in Tanzania and develop capacity to undertake policy analysis and advocacy. The presentation of the Policy Options for Food Security and Agricultural Growth and Poverty Reduction in Q2 was well received. In Q3, the GOT agenda was dominated by annual budget preparations and parliamentary sessions, and the forthcoming election on 25 October 2015; however, direct and indirect follow‐up communications with the GOT indicate that there are no objections to the recommendations presented and that there is interest in pursuing priority items. Despite the GOT’s focus on internal budgeting processes, SERA Project was able to make considerable progress of key policy issues and capacity building activities.

SERA activities included co‐sponsoring a seed industry stakeholder’s workshop with the Ministry of Agriculture, Food Security and Cooperatives (MAFC) and Alliance for a Green Revolution in Africa (AGRA), research on the implication of food basket costs for food security, the launch of a study on the agriculture business environment, and the development of a Concept Note for a study of food demand in Tanzania. Capacity building activities included meetings with the Department of Food Security (DFS) of MAFC to discuss piloting of the Food Basket Methodology (FBM), and the completion and final training for the Zanzibar Food Basket Methodology. The Strategic Plan for the Rice Council of Tanzania (RCT) was presented and accepted by the council’s Board of Directors (BOD). The final report on the Rapid Assessment of the Rice Sector was received and key results utilized by RCT. Communications activities included publication of a Policy Brief on the Secured Transaction/Collateral Registry System to facilitate the use of moveable assets as collateral on loans. Meetings with key Government officials were held to discuss SERA work plan and priority activities for the remaining period of the Project, which is scheduled to end in April, 2016.

A seed industry stakeholder’s workshop was held in Arusha on 11 – 12 June 2015 bringing together over 75 representatives from the public and private sectors to discuss progress and remaining challenges on key industry priorities. The MAFC presented progress on key policy issues related to plant breeders’ rights, licensing of public varieties, and the status of international accreditations. This activity was co‐sponsored with AGRA.

The Policy Brief on the Secured Transactions/Collateral Registry System was published and distributed to key Government officials and stakeholders. The Policy Brief, prepared by SERA consultant Dale Furnish, provides an overview and benefits of the System. The brief will be a useful tool in garnering support for the activity. The Bank of Tanzania (BOT) is undertaking preliminary work on the System, with additional support from SERA and the World Bank (WB) when appropriate.

Work began on the Food Basket Methodology Policy Brief. The Brief will provide new insights into food security in Tanzania and will be useful in designing better policies to respond to food security issues. When completed it will make a substantial contribution to SERA’s work on food security in Tanzania and will demonstrate the usefulness of the Food Basket Methodology for food security analysis.

A study of the business environment in agriculture was launched during a workshop at Coral Beach Hotel on 14 May 2015. The workshop was attended by staff from USAID, Southern Agricultural Growth Corridor of Tanzania (SAGCOT), the President’s Delivery Bureau (PDB), and SERA. The draft Concept Note was circulated prior to the workshop and a PowerPoint presentation was given at the workshop. The Concept Note compared corporate tax rates in Tanzania and neighbouring countries, and showed Tanzania to have corporate tax rates that are eight to ten percentage points (20‐30%) higher than in neighbouring countries. This was recognized as a significant obstacle to attracting corporate agriculture, and to achieving the objectives of SAGCOT and Big Results Now (BRN). The business environment for Tanzanian agriculture is poor, making it difficult to attract commercial investors, thus providing the reason for the study. The need for the study was fully endorsed by the participants. The study team will include a member from the Ministry of Agriculture, Food Security and Cooperatives, the SAGCOT Centre, and the President’s Delivery Bureau for Agriculture. Suggestions from the participants included inviting the Tanzania Investment Centre (TIC) to contribute a member to the study team, and to work closely with the Prime Minister’s Office (PMO) and the private sector.

The Concept Note for a study of food demand in Tanzania was developed by Edith Lazaro and circulated for review (Annex 4), and the data and proposed methodology have now been identified. In preparation for the activity, a meeting was held with Mr. Emilian Karugendo, Principal Statistician of National Bureau of Statistics (NBS) to discuss the 2011/2012 Household Budget Survey (HBS) that will be used in the study and to obtain all the data sets and documentation. Discussion where also held with Ms. Nadia Belghith, one of the authors of the recent Poverty Report released by the World Bank. With the preparatory work complete, the research study will begin in Q4.

SERA continued work on the implementation of the Food Basket Methodology on the Mainland and Zanzibar. Discussions with the National Food Security Department (NFSD) of MAFC for a pilot of the Food Basket Methodology continued and for a panel workshop with key stakeholders to discuss questions and concerns regarding use as an early warning tool on the mainland is planned for July 2015.

The Food Basket was completed for Zanzibar and the final training that will lead to the use and implementation of the methodology in future quarterly reporting has started. The training will be completed in Q4.

Two key capacity activities supporting the Rice Council for Tanzania where completed in Q3; the submission of the first Strategic Plan and the Rapid Assessment of the Rice Sector. Both activities contributed significantly to the organization’s development, stakeholders’ base, and advocacy efforts.