The fast track initiative: an assessment of a public-private partnership process on developing the fertiliser value chain in Tanzania

This document aims to facilitate the establishment of a public/private partnership (PPP) in the fertiliser supply chain for Tanzania. Commissioned by Norad, the report assesses the strengths and weaknesses of the value chain, examines the input and output markets for agricultural commodities, and develops a proposal for planning a PPP at local level. The report also reflects on Norad’s own policies with regard to supporting these activities.

Considering value chain opportunities and weaknesses in the financial sector, public policy and public institutions, infrastructure and communications, farmers’ organisations, and output markets, the consultants suggest improvements and recommendations for each domain. In terms of Norway’s possible contribution, the report recommends:

• financing training and facilitation of those representing small-scale, poor farmers
• financing studies that can facilitate a fertiliser fast-track process, but also address issues of more general development concerns
• a more comprehensive fertiliser value chain study with a focus on supply/demand relations in the different sections of the chain and on formal and informal power relations
• owing to a lack of organisational structure, Norad should contribute to better institution- building urgently
• there is a need for stronger government involvement in this initiative, as the government holds many key roles in making a fertiliser value chain more efficient and also more sustainable.

In concluding, the authors question the way in which poverty alleviation is addressed by Norad, expressing concern that few of the poorest farmers in Tanzania will benefit from the present programme or subsidy. Moreover, improving subsidised fertiliser delivery will require addressing issues around good governance.