Tanzania's Cotton Sector: Reforms, Constraints and Challenges

22 Pages Posted: 23 Mar 2004

Abstract

This article contributes to the liberalisation debate in Africa by assessing the policy reforms in the Tanzanian cotton sector, the outcome of which has been mixed. The grower's share in the fob price has increased; the growers receive payments promptly; the ginning capacity has increased considerably. However, supply response did not take place; the input distribution system collapsed, while the mixing of cotton varieties constitutes a threat to the viability of the sector. The co-operative unions figure prominently in the sector, although for all practical purposes they are bankrupt enterprises. Taxation is excessive, the tax code is complicated and tax evasion is pervasive. The cotton board and the ministries still overregulate the sector. The quality of statistics remains poor.

Suggested Citation

Baffes, John, Tanzania's Cotton Sector: Reforms, Constraints and Challenges. Development Policy Review, Vol. 22, No. 1, pp. 75-96, January 2004. Available at SSRN: https://ssrn.com/abstract=513445

John Baffes (Contact Author)

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/jbaffes

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