Tanzania Scraps Forty Two Coffee Levies

Tanzania’s government has scrapped 42 out of 47 levies that were being charged from coffee growers in Kagera region as part of continued efforts to improve the cash crop productivity.

The move that has retained only five levies out of 47 will now lower the charges per kilogram from 830/- to 267/-.

The decision was announced by Prime Minister Kassim Majaliwa on Tuesday following a report from a special team that he formed to assess modality and management of Kagera Co-operative Union (KCU).

The Premier was chairing an extraordinary meeting for coffee growers held in Karagwe district in Kagera region.

He also instructed leaders of the cooperative unions to properly supervise their cooperatives with a high level of integrity for the benefit of farmers.

“Leaders of cooperative unions should also stop borrowing money from financial institutions and spend it on buying coffee from farmers,” said Majaliwa.

The Premier also instructed that from now onwards, coffee will be sold through auctions that will be done through Agriculture Marketing Cooperative Societies (AMCOS).

For his part, Minister for Agriculture, Hussein Bashe said there are some cooperative unions that have been imposing charges that have been reducing farmers’ earnings.

He said that’s why the government has decided to cut the levies from 47 to 42 as part of its efforts to improve the livelihoods of coffee growers.

The Minister also called for cooperative unions to ensure farmers are being paid immediately after selling their coffee.

Bashe instructed the Director General of Tanzania Coffee Board to distribute coffee seedlings to improve productivity that will also help increase their income.