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Tanzania to Abolish Fertilizer Bulk Procurement System

August 2, 2021
1 minute read
Adolf Mkenda Tanzania fertilizer bulk procurement system (FBPS) abolished

The Minister of Agriculture of Tanzania Hon. Adolf Mkenda held a press conference on 28th July 2021 about the forty-year increase in fertilizer prices.

During the event, he announced that the government has decided to abolish the fertilizer bulk procurement system (FBPS) as it did not show as great results as the government had hoped.

“We have decided to allow traders to import without a joint fertilizer import system – BPS which however will not be approved until the Tanzania Fertilizer Regulatory Authority (TFRA) issues a permit after the inspection is completed,” said Mkenda.

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Similarly, Minister Mkenda said that the government is in talks with other fertilizer companies to see the possibility of reducing fertilizer prices that have been a barrier for farmers.

Prices of Fertilizers in Tanzania

High prices inhibit access to fertilizers by small-scale farmers (SSF). More than 90% of all fertilizers used in the country are imported and their price is high.

This is why the Ministry of Agriculture of Tanzania introduced in 2017 the fertilizer bulk procurement system (FBPS) to lower retail prices and enhance access to and increasing the use of fertilizers.

In its Monthly Marketing Bulletin of April 2021, the Ministry of Agriculture of Tanzania indicates that the prices for fertilizers have been increasing since mid-2020 mainly due to strong demand.

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Want to know more about investing in Tanzania? Our free overview of the Tanzania Business and Investment Guide 2026 covers the economy, key sectors and investment opportunities. The complete 141-page edition, which includes policies, taxation, key regulations, full macroeconomic data and sources, is also available at no cost upon completion of a short form.

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